But right now, it’s 2.75%, so you can use that to calculate it for comparison purposes. The total for the first two years is therefore £3,225 × 2 = £6,450.Īfter that, you don’t actually know what the interest rate will be, because the bank’s standard variable rate changes. Now suppose that you want to know how much interest you will have to pay over the lifetime of the mortgage, 25 years.įor the first two years, the interest rate is 1.5%, and you already know that the annual payment is £3,225. The monthly interest payment will be £268.75 That means that each year’s payment has to be divided by 12 (in practice, your mortgage company will probably do it by day, so that it will alter slightly each month, but this should be close enough for budgeting purposes). That gives you the annual interest, but you are going to pay it in monthly instalments. The yearly interest payment is 1.5% of £215,000. You want to know how much you will have to pay each month in interest for the first two years. You want to take out an interest-only mortgage of £215,000, at a fixed interest rate of 1.5% per annum for the first two years, payable in monthly instalments, and then you will move onto the bank’s standard variable rate, currently 2.75%. You will probably need to use several steps, and several calculations, to get the answer. Fraction to percentcalculator how to#Understanding how to calculate them could save you a lot of time and hassle (and money). Interest rates are almost always given in percentages, which means that mortgages and credit cards rely heavily on them. It’s worth thinking about some more complicated, ‘ real world’ examples using percentages. Manipulating this equation, once again, you get A = 100x ÷ y. Here, x and y are on opposite sides of the equation. ExamplesĪgain, you can think of this as a fraction, but in a slightly different form. Use this calculator to find the total when you know the percentage. If x is y percent, what is the total (100%)? The commission of 4.5% is therefore better value for you as a customer. Using the formula, therefore, x is 7.5 and y is 150.Īnswer: The commission of $7.50 is 5% on the sale price. This is asking you ‘What is $7.50 as a percent of $150?’. Another company has quoted you commission of 4.5%. You have been quoted commission of $7.50 on the sale of a table. This method also works with word-based problems. Using the formula that we have just worked out, x is 10 and y is 50. Some examples may make this even clearer. Just plug in the numbers and out will come the answer. If you multiply both sides by 100, you get A (your unknown) = 100x divided by y. The easiest way to do these, is to move the fraction around. Your fraction is x/ y, and your percentage is A/ 100. Think of this as turning a fraction into a percentage. Use this calculator find the proportion of one number to another in percentage terms. The total price of the paint is £15 × 3 = £45.Įffectively, you are being asked ‘ What is 20% of £45?’Īnswer: The total tax payable on the transaction will be £9. The paint costs £15 per pot, and you will need three pots. You want to know how much you will be paying in tax. You are buying some paint and the shop’s prices do not include VAT. The same rules apply to questions which are written as word problems. Instead, you have to divide 46 into 100 equal parts, and work out what 22 of them would be when added together.Ĥ6 ÷ 100 = 0.46. You can’t just work out what 22% is, expressed as a fraction, and anyway, it’s not a simple fraction. But suppose the numbers are more complicated. This is fine when the numbers are relatively simple. The first says “I know that 10 is one-tenth of 100.
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