A finance charge was added to Robin Archer's account balance because he did not pay his last bill in full. The finance charge was computed using the average daily balance where new purchases were included. What is the average daily balance given the information on the table below? The finance charge is $7\mathrm{.}25\%$ of the average daily balance. What is the new balance?

$\mathrm{.}0725$

Step $1$: Calculate the Average Daily Balance

Average Daily Balance $=\frac{\text{S}\text{u}\text{m}of\text{B}\text{a}\text{l}\text{a}\text{n}\text{c}\text{e}\text{s}}{\text{N}\text{u}\text{m}\text{b}\text{e}\text{r}of\text{D}\text{a}\text{y}\text{s}}$

$\frac{16344\mathrm{.}59}{31}=$$$527\mathrm{.}24$

Step $2$: Calculate the Finance Charge

Finance Charge $=$ Average Daily Balance $$ Periodic Rate

$527\mathrm{.}24\mathrm{.}6725=$$$38\mathrm{.}22$

Step $3$: Calculate the New Balance $2$

New Balance $=$ Unpaid Balance $+$ Finance Charge $+$ New Purchases

$538\mathrm{.}04+38\mathrm{.}22+$

Tiptocul Barams EDU