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Discussion in 'Credit Talk' started by Mike, Apr 25, 2001.
How is the interest calculated on regular purchases?
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Without a grace period, they just compute the average daily balance for cash advances, using the day the ATM withdrawal cleared. For 16 days out of 30, they would simply multiply x dollars times 16 days, and divide by 30 days. Average daily balance would be less than x, but interest would be applied for the whole 30 days.