 Hello and welcome to the session. In this session we shall discuss Average View Date. Let us discuss Equation of Payment and Average View Date. In business, large number of transactions takes place on credit basis. This credit involves payment of interest because of this interest the concept of Average View Date has been introduced. Without the loss of interest to anyone of the party, the mutual claims of two parties can be settled on the day called Average View Date. It can also be defined as the mean or equated date so that instead of a number of payments on different dates, one can make a single payment on a date much before the date of the final payment without the loss of interest to either party. For example, A has to pay $2,000 to be payable on 1 April 2010 and another $2,000 on 1 May 2010. If A pays $4,000 on 16 April to B then there is no loss of interest to either A or B as A pays for sum of $2,000 15 days late and second sum of $2,000 15 days earlier. Let us discuss it in general. Let P1, P2, P3 and so on are the different payments due after D1, D2, D3 and so on days respectively. Now the zero date is an arbitrary fixed date from which days that is D1, D2, D3 and so on are counted. Now if the lump sum of P1 plus P2 plus P3 plus and so on is considered till a period D from the zero date then we will have two types of payments. One is P1 into D1 plus P2 into D2 plus P3 into D3 and so on. And the second is P1 plus P2 plus P3 plus and so on will multiplied by D we equate these two types of payments we get P1 D1 plus P2 D2 plus P3 D3 plus and so on is equal to P1 plus P2 plus P3 plus and so on will multiplied by D. Which implies that D is equal to P1 D1 plus P2 D2 plus P3 D3 plus and so on whole upon P1 plus P2 plus P3 plus and so on. Which implies that D is equal to summation of P into D by summation of P this D is called the equated time of payment and the date after the zero date is the average due date. This average due date lies between the earliest and the latest date of different payments and it is obtained by adding the equated time D to the zero date. Let's take an example. Find the average due date of the following instalments table under a contract. On April 1 the instalment is $3,000 on May 1 is $5,200 on June 1 it's $1,500 and on July 1 it's $1,000. Here let April 1 be the zero date. Here we have assumed April 1 is the zero date. Now we can find out the number of days from zero date for the following due days that is April 1, May 1, June 1 and July 1. Since April 1 is the zero date therefore number of days from zero date for April 1 would be zero. Now number of days from zero date that is April 1 for the due date May 1 would be 29 plus 1 that is equal to 30 days. 29 days of April and 1 day of May number of days from zero date that is April 1 for the due date that is June 1 is equal to 29 days of April plus 31 days of May plus 1 day of June which is equal to 61 and the number of days from zero date that is April 1 for the due date July 1 is equal to 29 days of April plus 31 days of May plus 30 days of June plus 1 day of July which is equal to 91. Now we shall find out the product of the payments and the number of days from zero date that is P into D which is equal to 3000 into 0 that is 0, 5200 into 30 that is 156,000 and then we have 1,500 into 61 that is 91,500 next is 1,000 into 91 that is 91,000 now summation of P that is sum of all the payments is given by 10,700 and summation of P into D is given by 338,500 therefore D is given by summation of P into D upon summation of D which is equal to 338,500 upon 7,700 which is equal to 3385 upon 107 which is equal to 31.64 days which is equal to 32 days therefore is equal to third day that is 32 days completes our session hope you enjoyed this session