Questions: Fill in each blank so that the resulting statement is true. The average daily balance for a credit card's billing period is divided by the . number of days in the billing period annual interest rate sum of the unpaid balances for each day in the billing period number of days in a year

Fill in each blank so that the resulting statement is true. The average daily balance for a credit card's billing period is divided by the . number of days in the billing period annual interest rate sum of the unpaid balances for each day in the billing period number of days in a year

Transcript text: Fill in each blank so that the resulting statement is true. The average daily balance for a credit card's billing period is $\square$ divided by the $\square$. number of days in the billing period annual interest rate sum of the unpaid balances for each day in the billing period number of days in a year

Solution

Solution Steps

To fill in the blanks, we need to understand the concept of average daily balance for a credit card. The average daily balance is calculated by taking the sum of the unpaid balances for each day in the billing period and dividing it by the number of days in the billing period.

Solution Approach

Identify the correct terms to fill in the blanks based on the definition of average daily balance.
The first blank should be filled with "sum of the unpaid balances for each day in the billing period."
The second blank should be filled with "number of days in the billing period."

Step 1: Understanding the Average Daily Balance

The average daily balance for a credit card is calculated by taking the total of the unpaid balances for each day during the billing period and dividing it by the number of days in that period. This can be expressed mathematically as:

\[ \text{Average Daily Balance} = \frac{\text{Sum of Unpaid Balances}}{\text{Number of Days in Billing Period}} \]

Step 2: Filling in the Blanks

Based on the definition, we can fill in the blanks in the statement:

The first blank corresponds to the "sum of the unpaid balances for each day in the billing period."
The second blank corresponds to the "number of days in the billing period."

Thus, the complete statement becomes:

\[ \text{The average daily balance for a credit card's billing period is } \frac{\text{Sum of Unpaid Balances}}{\text{Number of Days in Billing Period}}. \]