Question

A bank charge 120 as an arrangement fee for a personal loan of 4000, how much did the fee represent as a percentage of loan

Answer 1

120/4000 multiplied by 100 that is 3 percent

Answer 2

This is a simple question on percentages.

We need to get the charge on the loan as a percentage of the loan.

Given an amount x and y and we are required to express the amount x as a percentage of y, we will do the following:

X as a percentage of y is given by :

= x/y × 100%

We apply this to the question given .

Let y be the loan and x be the charge.

We express the charge x as a percentage of the loan as follows:

120/4000 × 100%

= 0.03 × 100% = 3%

The answer is therefore 3%