In: Finance
Suppose the charge account of Strong's Mailing Service at the local supply store had a 1.8% interest rate per month on the average daily balance. Find the average daily balance if Strong's had an unpaid balance on March 1 of $195.10, a payment of $20 posted on March 9, and a purchase of $34.60 posted on March 25. The billing cycle ends March 31.
In Avg daily balance method interest is charged on the daily balance due instead of monthly or yearly balance.Please upvote if the ans is helpful. Thanks.