Roderick's credit card company calculates a finance charge based upon a periodic rate of 1.2% on all unpaid balances. If Roderick has an unpaid balance of $200, determine the finance charge that he will be assessed.
This is a percentage problem and requires the equation: part/whole = percentage/100
Here your whole is $200 and you are give your percentage, so you must solve for your part.
When we rewrite our equation, it becomes:
part/200 = 1.2/100
Now we solve the right hand side
part/200 = .012
To find the part, we move the 200 over by multiplying it
part = 200 * .012
part = 2.4
So Roderick's finance charge will be $2.40
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