Please ~ How can I do the average daily balance sheet ???
ACTIVITY 7 Computing the is that offer standing balan C orsing methods the avera nach day in the w as the purcha The followin men for lohi amount by con and dividing the Given the following Suz SOU ses uting the Average Daily Balance or credit cards and other forms of revolving credit do so to make money from interest on Cardholders who pay the full balance each month are not those from whom revol rease their profit margin. To make money wherever possible revolving creditors use dil sa compute finance charges on outstanding halanses. One of the most popular methods daily balance. The ADB method multiplies the periodic rate by the average daily balance illing cycle. Some revolving creditors add new purchases to the average daily balance as chases occur, while others do not add the new purchases until the next biling cycle. ing example demonstrates the way to calculate the va daily balance. The sample state- hn Doe in Activity 6 has an average daily balance of S131 for Computing the balance on the account for each day of the billing de adding the balances chaces We arrive at this eing the sum by the number of days in the cele the following list of items and their values, use the following worksheet to develop a lance sheet for the Johnson family, 145.97 (balance due on the last statement) 145.97 145.97 173.92 (5145.97 $27.95 posted charge) 173.92 361.09 (5173.92 $81.63 $102.54 posted charges) 361.09 361.09 361.09 361.09 361.09 361.09 361.09 361.09 361.09 5/11 361.09 361.09 5/13 361.09 361.09 5/15 375.85 (5361.09.514.76 posted charge) 375.85 5/17 375.85 263.56 (5375.85 + $33.68 posted charge - $145.97 posted payment) 263.56 263.56 263.56 263.56 263.56 263.56 263.56 263.56 $9.340.60 512 514 $9.340.60/31 - $301.31 AVERAGE DAILY BALANCE 198 PERSONAL FINANCE If a person had an average daily balance of $200.00 and an APR of 21.00, the finance charge would be $400 x (21.00W/365 days) = $23.01. In John Doe's case the company was not using the ADB method Fortunately for Mr. Doe, the company also did not change interest on balances until they had accumulated past the payment due date. The following is a copy of John Doe's next credit card statement. Use the Average Daily Balance Calculation Sheet on the next page to calculate the average daily balance. Write in the average daily balance on the statement. POSSSSSSS 5555 4444 33332222 Account Number: 1 FIRST BANK Amount enclosed: $ New balance: $212.17 Minimum payment due: $10.61 Payment due date 07/20/2017 Pay by phone 1-000-000-1111 a Pay online www.istbanks.com SOVEREIGN CARD PO BOX 000 GREENVILLE, SC29600 Inom JOHNL. DOE 211 TERRACE PLACE GREENVILLE, SC 29601 Pay by mail Use this coupon Enclose a valid check or money order payable to FIRST BANK No Cash or foreign currency. Write the last four digits of your account number on your check deach and male coupon above with your payment Account Member JOHN L DOE How To Reach Us 1-800-000-1111 Account Number 5555 4444 3333 2222 Customer Service PO Box 000 GREENVILLE, SC 29600 FIRST BANK Credit Limit Available Credit $1,000.00 $787.83 Amount Account Summary Statement Closing Date Previous balance Payments Pachates and debits Total finance charges $10.24 06/26/2017 526156 -$262.56 +$212.17 $0.00 52451 Transactions Trans Post Reference Number Description 5127 5/29 M827150176566EG Sunshine Farms 5/28 329 MS46545858542RT Montgomery Bicycle 6/1 6/2 M74114787989230A 5th Street Cleaners 6/1 6/7 M987789452321P Bonnie's Boutique 6/196/20 M963258741236DR Dr. Payne 6/20 6/208796541208514A Check payment Anytown SC 56.10 $121.32 Minimum payment due New balance Payment due date $10.61 $212.17 07/20/2017 550.00 5263.56 the best of up to $5 and Finance Charge Average Daily Daily Balance Periodic Rate 0.0493% Cash Advances $0.00 0.0411% Days in billing period 31 Annual Percentage Rate 10 154 DAILY BALANCE CALCULATION SHEET AVERAGE DAILS 5/29 5/30 5/31 601 602 6/03 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 6/19 6/20 6/21 6/22 6/23 6/24 6/25 6/26 SUM ACTIVITY 7 Computing the is that offer standing balan C orsing methods the avera nach day in the w as the purcha The followin men for lohi amount by con and dividing the Given the following Suz SOU ses uting the Average Daily Balance or credit cards and other forms of revolving credit do so to make money from interest on Cardholders who pay the full balance each month are not those from whom revol rease their profit margin. To make money wherever possible revolving creditors use dil sa compute finance charges on outstanding halanses. One of the most popular methods daily balance. The ADB method multiplies the periodic rate by the average daily balance illing cycle. Some revolving creditors add new purchases to the average daily balance as chases occur, while others do not add the new purchases until the next biling cycle. ing example demonstrates the way to calculate the va daily balance. The sample state- hn Doe in Activity 6 has an average daily balance of S131 for Computing the balance on the account for each day of the billing de adding the balances chaces We arrive at this eing the sum by the number of days in the cele the following list of items and their values, use the following worksheet to develop a lance sheet for the Johnson family, 145.97 (balance due on the last statement) 145.97 145.97 173.92 (5145.97 $27.95 posted charge) 173.92 361.09 (5173.92 $81.63 $102.54 posted charges) 361.09 361.09 361.09 361.09 361.09 361.09 361.09 361.09 361.09 5/11 361.09 361.09 5/13 361.09 361.09 5/15 375.85 (5361.09.514.76 posted charge) 375.85 5/17 375.85 263.56 (5375.85 + $33.68 posted charge - $145.97 posted payment) 263.56 263.56 263.56 263.56 263.56 263.56 263.56 263.56 $9.340.60 512 514 $9.340.60/31 - $301.31 AVERAGE DAILY BALANCE 198 PERSONAL FINANCE If a person had an average daily balance of $200.00 and an APR of 21.00, the finance charge would be $400 x (21.00W/365 days) = $23.01. In John Doe's case the company was not using the ADB method Fortunately for Mr. Doe, the company also did not change interest on balances until they had accumulated past the payment due date. The following is a copy of John Doe's next credit card statement. Use the Average Daily Balance Calculation Sheet on the next page to calculate the average daily balance. Write in the average daily balance on the statement. POSSSSSSS 5555 4444 33332222 Account Number: 1 FIRST BANK Amount enclosed: $ New balance: $212.17 Minimum payment due: $10.61 Payment due date 07/20/2017 Pay by phone 1-000-000-1111 a Pay online www.istbanks.com SOVEREIGN CARD PO BOX 000 GREENVILLE, SC29600 Inom JOHNL. DOE 211 TERRACE PLACE GREENVILLE, SC 29601 Pay by mail Use this coupon Enclose a valid check or money order payable to FIRST BANK No Cash or foreign currency. Write the last four digits of your account number on your check deach and male coupon above with your payment Account Member JOHN L DOE How To Reach Us 1-800-000-1111 Account Number 5555 4444 3333 2222 Customer Service PO Box 000 GREENVILLE, SC 29600 FIRST BANK Credit Limit Available Credit $1,000.00 $787.83 Amount Account Summary Statement Closing Date Previous balance Payments Pachates and debits Total finance charges $10.24 06/26/2017 526156 -$262.56 +$212.17 $0.00 52451 Transactions Trans Post Reference Number Description 5127 5/29 M827150176566EG Sunshine Farms 5/28 329 MS46545858542RT Montgomery Bicycle 6/1 6/2 M74114787989230A 5th Street Cleaners 6/1 6/7 M987789452321P Bonnie's Boutique 6/196/20 M963258741236DR Dr. Payne 6/20 6/208796541208514A Check payment Anytown SC 56.10 $121.32 Minimum payment due New balance Payment due date $10.61 $212.17 07/20/2017 550.00 5263.56 the best of up to $5 and Finance Charge Average Daily Daily Balance Periodic Rate 0.0493% Cash Advances $0.00 0.0411% Days in billing period 31 Annual Percentage Rate 10 154 DAILY BALANCE CALCULATION SHEET AVERAGE DAILS 5/29 5/30 5/31 601 602 6/03 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 6/19 6/20 6/21 6/22 6/23 6/24 6/25 6/26 SUM
