To compute the new balance we are going to use the steps given in the example with the information given.
The average daily balance will be:
$10,594.36 divided by 31 days, so, the average daily balance is equal to $341.75
The finance charge will be found multiplying 3/100 (3%) by the average daily balance, doing so we get:
$341.75*3/100 = $10.25.
To find the new balance we are going to make the following calculation:
Previous balance + new charges (include finance charge and new purchases) - credit payments (include credit and payments)
Replacing the values, from the table, in the equation we have:
$350(previous balance) + $10.25 (finance charge) + 70.94 (new purchases) - $0 (credit) - $83.94(payments)= $347.25
Therefore the new balance is equal to $347.25.
