How We Calculate Your Interest on Purchases Sample Clauses

How We Calculate Your Interest on Purchases. Average Daily Balance Method (Including New Purchases). We calculate a portion of the Interest Charge on your Credit Account by applying a Monthly Periodic Rate to the “Average Daily Balance of Purchases” on the Account (including new Purchases for which you do not have a grace period). The “Monthly Periodic Rate” is determined by dividing the Annual Percentage Rate by 12. To get the Average Daily Balance of Purchases, we take the beginning balance of Purchases on the Credit Account each day; add any New Purchases posted to your Credit Account on that day; and subtract unpaid interest or other finance charges and any payments or credits and fees. This gives us the Daily Balance of Purchases. Then we add together all of these Daily Balances of Purchases for the Billing Cycle, and divide the total by the number of days in the Billing Cycle. This gives us the Average Daily Balance of Purchases.
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Related to How We Calculate Your Interest on Purchases

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