Question 5 of 10 The opening balance of the January billing cycle for Megan's credit card was 4805 If she makes a new purchase of 300 on the 20th of January and doesn't make any payments what is her average daily balance? A 5,105.23 B 4,955.00 C. 4,805.00 D. 4,911.45

To calculate the average daily balance, we need to find the total balance for each day in the billing cycle and then divide it by the number of days in the cycle.<br /><br />In this case, Megan's credit card has an opening balance of $4,805 on January 1st. She makes a new purchase of $300 on January 20th, so the balance for the remaining days in the billing cycle is $5,105.<br /><br />To calculate the average daily balance, we need to find the total balance for each day in the billing cycle and then divide it by the number of days in the cycle.<br /><br />The billing cycle is 31 days long, so we can calculate the average daily balance as follows:<br /><br />Average daily balance = (Opening balance x Number of days in the billing cycle + New purchase x Number of days remaining in the billing cycle) / Number of days in the billing cycle<br /><br />Average daily balance = ($4,805 x 20 + $5,105 x 11) / 31<br /><br />Average daily balance = $4,911.45<br /><br />Therefore, the correct answer is D. $4,911.45.