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average daily balance

The average amount that exists in an account over a period of time. The number is calculated by adding the daily balances over a period of time and dividing by the total number of days in that period. Used in the average daily balance method for determining interest.

Related information about average daily balance:
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    What is the average daily balance method? Here is a simple explanation of the formula even a monkey would understand. Get your calculator ready!
     
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    Average Daily Balance. Also found in: Acronyms, 0.02 sec. Average daily balance. A method for calculating interest in which the balance owed each day by a ...
     
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  6. Average Daily Balance Method Definition | Investopedia
    A credit card accounting method where interest charges are based on the amount owed at the end of each day. Under the average daily balance method, each ...
     
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  8. Average Daily Balance | Business Math: Consumer Credit and ...
    The Average Daily Balance is the total of the balance at the end of each day during a period ... Learn how to calculate average daily balance (ADB) in this tutorial.