Want this question answered?
Calculate the average balance and finance charge
Monthly average balance is the sum of daily balances in a month divided by the number of days in that month.
Visa uses the method they call "average daily balance (including new purchases)."
Average Daily Balance Method
Credit card companies use average daily balance to calculate interest charges. Each day's balance is added together, and then divided by the number of days in the billing cycle.
Average daily balance method
hoe do u calculate average daily collection?
Use this simple formula: I=Average daily balance times the interest rate, divided by 366 times 30 days in November.
The definition is: the daily ledger balances less uncollected checks divided by the number of days in a period.
it is the sum of the daily balance divided by the number of days in the billing cycle
it is the sum of the daily balance divided by the number of days in the billing cycle
VISA uses Average Daily Balance (including cash advances). The average daily balance method of calculating finance charges uses the average of your balance during the billing cycle. Your average daily is the sum of your balance on each day of the billing divided by the number of days in the billing cycle.