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BDO Credit Card Cash Advance Interest Formula:
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The BDO Credit Card Cash Advance Interest calculation determines the interest charged on cash advances from BDO credit cards. It uses the average daily balance, monthly interest rate, and number of days in the billing cycle to compute the interest amount.
The calculator uses the BDO interest formula:
Where:
Explanation: The formula calculates the interest based on the outstanding balance, applied interest rate, and the duration of the billing cycle.
Details: Understanding how interest is calculated helps cardholders manage their finances better, avoid excessive charges, and make informed decisions about cash advances.
Tips: Enter the average daily balance in PHP, monthly interest rate as a percentage, and number of days in the billing cycle. All values must be positive numbers.
Q1: What is the typical interest rate for BDO cash advances?
A: BDO cash advance interest rates typically range from 2% to 3.5% per month, but check your specific card terms for exact rates.
Q2: How is the average daily balance calculated?
A: The average daily balance is calculated by summing the daily balances and dividing by the number of days in the billing cycle.
Q3: Are there additional fees for cash advances?
A: Yes, BDO typically charges a cash advance fee (usually a percentage of the amount or a fixed minimum) in addition to the interest.
Q4: When is interest charged on cash advances?
A: Interest on cash advances is typically charged from the transaction date until full payment is received.
Q5: How can I minimize cash advance interest charges?
A: Pay off cash advances as quickly as possible, avoid unnecessary cash advances, and consider alternative funding sources with lower costs.