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Average Daily Balance

Definition: Average amount of money a business keeps in an account. Average daily balance is determined by adding the daily balances of the account over a period of time and then dividing the total amount by theDefinition: days covered. Definition: [crh] A method for calculating interest in which the balance owed each day by a customer is divided by the number of days. See also: Definition: >Adjusted balance method and previous balance method.

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