Answer:
The average daily balance total's each day's balance for the billing cycle and is then divided by the total number of days in the billing cycle. This will be tedious if done by hand because each day will need to be calculated.
Explanation: Example: If your balance was $300 yesterday and then you spend $200 today your balance will be $500. If your billing cycle is 28 days, and you don't spend anymore your balance will be $500. Your average daily balance is calculated like this= 500/28= $17.85. $17.85 will be your average daily balance.
