Find the finance charge on the credit card account.

Question

Last month's balance; $718, payment;$259, interest rate: 18%, bought jacket; $117, returned jacket, 160.

Answer 1

you can find the new balance before interest is applied by taking

718 - 259 + 117 - 117 = $459

then the simple monthly finance charge here is

$459 x 18%/12 = $6.89

Answer 2

Assume Average Daily Balance of $416.00 with a 18% Annual Percentage Rate or 0.18 in decimal form and  a 31-day billing cycle.
Total Finance Fee Due for the Billing Cycle = $416.00 x 0.18% x 31 ÷ 365 = $6.40