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Financing cost in basis points

Mental mathEasy

A desk pays a financing charge of basis points on a notional of . One basis point is . How much does the desk pay?

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A whole number, a decimal, a fraction like 3/8 or a percent.

Hint

Convert the basis points to a fraction of the notional.

Solution
  1. basis points is , i.e. .
  2. .
  3. .
  4. The charge is .

Answer: