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.

Hi ghostdna,

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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