Quoto

Learn / Library / Mental math

Annual fee on managed assets

Mental mathMedium

A fund charges an annual fee of basis points on assets of . What is the fee for the year? One basis point is .

Checking an answer needs JavaScript. The hint and the solution open without it.

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

Hint

Compute the fee per units of assets first.

Solution
  1. units of .
  2. Each unit of pays per basis point, so the fee is .
  3. .
  4. The fee is .

Answer: