If the interest rate on the average daily balance is 1.8%, the finance charge due on June 8 is $595.45.
The average daily balance method is based on the card's outstanding balances on each day of the billing period.
To compute the finance charge, the average daily balance is multiplied by the card's daily periodic rate and by the number of days in the billing period.
May 8, Balance Due = $656.95
May 15 Purchases $315
May 17 Purchases $122.78
May 25 Payment $340
June 2 Purchases $59.67
Finance Charge:
May 8 - 14 = $82.78 ($656.95 x 1.8% x 7 days)
May 15 - 16 = $37.97 ($656.95 + $82.78 + $315 x 1.8% x 2 days)
May 17 - 24 = $157.35 ($1,092.70 x 1.8% x 8 days)
May 25 - June 1 = $180.00 ($1,092.70 + $157.35 x 1.8% x 8 days)
June 2 - June 8 = $137.35 ($1,430.05 - $340 x 1.8% x 7 days)
Total finance charge = $595.45