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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 Terms: 7 Account, Average daily balance, Average daily balance method, Average, Balance, Interest, Term
Other Related Pages: Category: Lending_and_Credit Starting With: A
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