AboutJohn Zalewski Expertise I can help you solve problems involving fractions, decimals, ratios, and algebra. I can teach you how to do math faster, and even in your head. I can teach math definitions, and help you study, if necessary. Please do not ask any graphing, trigonometry, or calculus questions. Try to work through homework questions before asking for assistance.
Experience I routinely process numbers of all kinds in my head, without need of a calculator.
Education/Credentials I was an A math student while in high school.
Expert: John Zalewski Date: 5/6/2008 Subject: Percentages
Question Just read that 1 out of 100 = 1%
Also, that .01 = 1%
Why the confusion? For example if I was to receive "1 point" for a $100,000 loan, that would be 1%, right?
Why does one lender use .01% & not just say 1%?
Thanks,
cdm
Answer Hello, Claude.
Percentage is 'out of 100.' Therefore, 1 out of 100 is 1 percent.
To convert a percent to a decimal, move the decimal point two places to the left. Therefore, 1.0% is equal to .01.
If you were to receive 1 point for a $100,000 loan, that would be equivalent to .001%, not 1%. Remember, percent is 'out of 100.' Since you are receiving 1 out of 100,000 (1000 times greater than 100), it cannot be 1%. It must, in fact, be 1000 times smaller than 1%, or .001%.
1 divided by 100,000 is equal to .00001., which is equal to .001%.
