Financial Algebra © Cengage/South-Western Slide 1 4-6 AVERAGE DAILY BALANCE Calculate the average...
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Transcript of Financial Algebra © Cengage/South-Western Slide 1 4-6 AVERAGE DAILY BALANCE Calculate the average...
Financial Algebra© Cengage/South-Western Slide 11
4-6AVERAGE DAILY BALANCE
Calculate the average daily balance using the credit calendar.
Calculate the finance charge using the credit calendar.
OBJECTIVES
Financial Algebra© Cengage Learning/South-Western Slide 22
average daily balance credit calendar
Key Terms
Financial Algebra© Cengage Learning/South-Western Slide 33
Example 1Example 1 Use the information given in Elena Kaye’s credit card
statement to verify the accuracy of her average daily balance.
Financial Algebra© Cengage Learning/South-Western Slide 44
Is there a better time during the billing cycle when Elena could have made her payment so that the average daily balance would have been less?
CHECK YOUR UNDERSTANDING
Financial Algebra© Cengage Learning/South-Western Slide 55
Example 2Example 2 Determine the finance charge for Elena’s billing cycle.
Financial Algebra© Cengage Learning/South-Western Slide 66
When might Elena have made her purchases during the billing cycle in order to decrease her finance charge?
CHECK YOUR UNDERSTANDING