Respuesta :
Answer:
Average day end balance using weighted average = $1,316.667
Average day end balance using simple average = $1,050
Step-by-step explanation:
Provided opening balance = $1,200
During the month addition in such balance = $500
New balance as on 16 November = $1,200 + $500 = $1,700
Further by the end of month of November balance after payment = $1,700 - $800
= $900
Thus, opening balance = $1,200
Closing = $900
Simple average = [tex]\frac{1,200 + 9,00}{2} = 1,050[/tex]
Day end balance = $1,050
For this weighted average can be done
First 15 days balance = $1,200 as no transaction was done.
From 16 to 25 November balance increased by $500 = $1,700 for 10 days
Remaining days = 5 days = $1,700 - $800 paid = $900
Using weighted average we have
[tex]\frac{(1,200 \times 15) + (1,700 \times 10) + (900 \times 5)}{30} = \frac{39,500}{30} = 1,316.667[/tex]
Day end balance = $1,316.667
