Solution :
For average daily balance:
Form date 9/1 to date 9/5 :
Balance x number of the days = $ 387.52 x 5 days = $ 1937.6
As on date 9/6 :
($ 387.52 - $ 50.00) x 1 day = $ 337.52
From date 9/7 to date 9/18 :
Balance = $ 337.50
Number of days = 12 days
Therefore, product = 12 days x $ 337.52
                = $ 4050.24
As on 9/19 :
($ 337.52 Â + $ 62.66) x 1 day = $ 400.18
From date 9/20 to date 9/30
Balance :$ 400.18
Number of days = 11 days
Therefore, product = 11 days x $ 400.18
                = $ 4401.98
Average daily balance = Â $ 1937.6 + Â $ 337.50 + $ 4050.24 + $ 400.18 + $ 4401.98
[tex]$=\frac{11127.5}{30}$[/tex]
= $ 370.91
Finance charge = $ 370.91 x 1.75 %
             = $ 6.49
New balance = $ 370.91 + $ 6.49
           = $ 377.4
