Will databases be deleted if folder is based on date?

In the backup wizard, step 3 of 6 under the Backup location section:

If this is my Folder specification: C:\000\<DATETIME yyyy_mm_dd>\ AND I turn on the "Delete existing backup filies in this folder for the selected databases" will this housekeeping actually work?

I wonder because the folder name would change everyday... is the program smart enough to search these folders and delete databases that full under its criteria?

Thanks!
Mike Murphy