Last month the ending balance on Maryanne’s Mastercard was $1,789, the average daily balance was $755, and the monthly periodic
rate is 1.85%. Her finance charge can be calculated by multiplying the ending balance times the monthly periodic rate. So the finance charge is $1,789 ´ 0.0185 = $33.10.
Based on the information given we can calculate the finance charge of Maryanne’s by simply multiplying her average daily balance which is the amount of $755 times her monthly periodic rate which is 0.0185.
Hence, Maryanne's finance charge is calculated by using this formula
