I have to figure the finance charge per $ 100.00 for a loan of $4500.00 with a finance charge of $1080.00
I don't know what formula to use
1080/4500 = x/100
= 1080/45
To calculate the finance charge per $100.00 for a loan, you need to divide the finance charge by the loan amount and then multiply it by 100 to get the percentage ratio. Here's how you can calculate it:
1. Identify the values:
Loan Amount (A) = $4500.00
Finance Charge (F) = $1080.00
2. Calculate the finance charge per $100.00:
Divide the finance charge by the loan amount:
Finance charge per $1.00 = F / A
Finance charge per $100.00 = (F / A) * 100
So, let's plug in the values into the equation:
Finance charge per $100.00 = ($1080.00 / $4500.00) * 100
Simplify the equation:
Finance charge per $100.00 = 0.24 * 100
Therefore, the finance charge per $100.00 for a loan of $4500.00 with a finance charge of $1080 is $24.00.