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.
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The average daily balance method is one of the ways your creditor might calculate your finance charge. Find out how the calculation works.
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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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Definition of 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 ...
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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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Aug 29, 2008 ... Many credit card companies use the Average Daily Balance Method when calculating how much interest they charge their customers during a ...
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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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We explain the definition of Average Daily Balance Method, provide a clear example of the formula and explain why it's an important concept in business, ...
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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.