For the month of April, a checking account has a balance of $517 for 23 days, $2419 for 4 days,and $297 for 3 days. What is the account's mean daily balance for April?

For the month of April, a checking account has a balance of $517 for 23 days, $2419 for 4 days,and $297 for 3 days. What is the account’s mean daily balance for April?

Introduction

The mean daily balance for a checking account is $116,112.

$517*23 + $2419*4 + $297*3 = $116,112

Multiply each balance by the number of days it was in the account.

Add up all the results.

Divide by the number of days in the month: April has 23 days, so divide by 23 to get your answer: $517/$116,112 = 0.18678961767896

116,112/34 = 3415.29

To find the mean daily balance, use the following formula:

Divide the total by the number of days. In our example, this is 116,112/34 = 3415.29.

Use a calculator or conversion tool to convert this decimal to a whole number (e.g., divide 3415 by itself).

3415.29

The answer is 3415.29.

The account’s mean daily balance for April is $3415.29, which means that the average amount of money in this checking account over the course of four days was $3415.29, and on average over 23 days it was $517 (the sum of all balances at any given time).

Conclusion

The account’s mean daily balance is $3415.29. This means that on average, the account will have a cash balance of $3415.29 for every day in April.