To calculate the average daily balance, use the following formula:
? $$\text { Average Daily Balance } = \frac { \text { sum of the daily balances } } { \text { days in billing cycle } }$$ ?

Question

Quizplus · Accepted Answer

The formula for calculating the average daily balance is indeed to divide the sum of the daily balances by the number of days in the billing cycle. This method is commonly used by credit card companies to calculate interest charges.