Question

Which is the most common method for calculating credit card balances? A. Previous balance method, B. Adjusted balance method, C. Average daily balance method, D. Average monthly balance method

Answer 1

The correct answer is C. Average daily balance method.

In average daily we consider balance interest or owed at the end of the day.

To calculate debt credit card we take the percentage of the total amount of current balance which will be termed as the interest then add one percent of the principal.

T o calculate for daily credit card balance we total the balance in the billing cycle everyday then you will divide your total with the number of days which in the cycle.

Answer 2

Average daily balance method