Calculate the average daily balance for October for a revolving credit account with a previous month's balance of $140 and the following activity.
Date  Activity  Amount 
October 3  Cash advance  $50.00 
October 7  Payment  $75.00 
October 10  Purchase  $26.69 
October 16  Credit  $40.00 
October 25  Purchase  $122.70 
To calculate: The average daily balance for October for a revolving credit account if the previous month’s balance is
Date 
Activity 
Amount 
October 3 
Cash advance 

October 7 
Payment 

October 10 
Purchase 

October 16 
Credit 

October 25 
Purchase 
Given Information:
Previous month balance is
Date 
Activity 
Amount 
October 3 
Cash advance 

October 7 
Payment 

October 10 
Purchase 

October 16 
Credit 

October 25 
Purchase 
Formula used:
The average daily balance is computed by dividing the total sum of daily balances by the number of days in a billing cycle.
Calculation:
Consider that previous month’s balance is
Compute the unpaid and daily balances as follows:
Dates 
No. of days 
Activity/ Amount 
Unpaid balance ($) 
Daily balances 
October 
Previous month balance 

October 
Cash advance 

October 
Payment 
Calculus (MindTap Course List)
Single Variable Calculus
Finite Mathematics
Precalculus: Mathematics for Calculus (Standalone Book)
Probability and Statistics for Engineering and the Sciences
Understanding Basic Statistics
Applied Calculus
Elementary Technical Mathematics
Mathematical Excursions (MindTap Course List)
Mathematical Applications for the Management, Life, and Social Sciences
Single Variable Calculus: Early Transcendentals, Volume I
Essentials Of Statistics
Intermediate Algebra
Multivariable Calculus
Calculus: An Applied Approach (MindTap Course List)
Essentials of Statistics for The Behavioral Sciences (MindTap Course List)
Calculus: Early Transcendentals
Statistics for The Behavioral Sciences (MindTap Course List)
Finite Mathematics and Applied Calculus (MindTap Course List)
Calculus: Early Transcendental Functions
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Elementary Geometry For College Students, 7e
Trigonometry (MindTap Course List)
Calculus of a Single Variable
Single Variable Calculus: Early Transcendentals
Calculus: Early Transcendental Functions (MindTap Course List)
Elements Of Modern Algebra
Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th
Study Guide for Stewart's Multivariable Calculus, 8th
Finite Mathematics for the Managerial, Life, and Social Sciences
Elementary Geometry for College Students
Research Methods for the Behavioral Sciences (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICSTEXT
Research Methods for the Behavioral Sciences (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
College Algebra (MindTap Course List)
Calculus (MindTap Course List)
Multivariable Calculus
Introduction To Statistics And Data Analysis
Mathematics: A Practical Odyssey
Mathematics For Machine Technology