Balance Calculation Method (Average Daily Balance Method (Including Current Transactions. In any Billing Cycle in which you owe interest, we will charge interest on your balances of purchases, balance transfers and cash advances at the applicable Daily Periodic Rates. We figure the interest charge on your Account by applying the periodic rate to the “average daily balance” of your Account. To get the “average daily balance”, we take the beginning balance of your Account each day, add any new transactions and fees and subtract any payments or credits. This gives us the daily balance. Then, we add up all the daily balances for the Billing Cycle and divide the total by the number of days in the Billing Cycle. This gives us the “average daily balance”. We compound (charge interest on) unpaid interest charges and unpaid fees.
