A simplified formula for the amount on a credit card subject to finance charges is:

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The formula for the amount subject to finance charges is the previous balance minus payments plus purchases. This is because the finance charges are generally based on the average daily balance, which is calculated as the sum of each day's balance divided by the number of days in the billing cycle. So, if a payment is made during the cycle, the average daily balance will be lower, resulting in lower finance charges. Similarly, if new purchases are made, the average daily balance will be higher, resulting in higher finance charges.

A Simplified Formula for the Amount on a Credit Card