Question : If basis points are defined so that 1% is equal to 100 basis points, by how many basis points is 82.5% greater than 62.5%?
Option 1: 0.2
Option 2: 20
Option 3: 200
Option 4: 2000
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Correct Answer: 2000
Solution :
1% = 100 basis points
Difference in basis points = (82.5 – 62.5)% = 20%
Required basis points = 20 × 100 = 2000
Hence, the correct answer is 2000.
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