Calculate the average daily balance


Calculate the debt limit for the Mitchell family if their financial statement reads as follows:

  • total assets, including their home value of $380,000: $478,700
  • short-term liabilities: $6,700
  • long-term liabilities, including a mortgage balance of $298,000: $320,000

Calculate the average daily balance (ADB) and the finance charge on Drew's account that has 9.5% APR and a 30-day billing cycle. His January statement shows:

  • $425.89 balance carried from December
  • $133.15 K-Mart charge on January 5
  • $76.95 Greek Cuisine restaurant charge on January 8
  • $150.00 payment paid on January 10
  • $25.25 Texaco gas charge on January 11
  • $33.15 Target charge on January 21
  • $80.00 health club charge on January 26
  • $17.85 Wal-Mart charge on January 28

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Finance Basics: Calculate the average daily balance
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