The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares
purchased as indicated.
-$$\begin{array} { l c c c }
\hline \text { Amount } & \text { Total Fund } & \text { Total Fund } & \text { Total Shares } \
\text { Invested } & \text { Assets } & \text { Liabilities } & \text { Outstanding } \
\hline \$ 56,100 & \$ 1.52 \text { billion } & \$ 146 \text { million } & 203 \text { million } \
\hline
\end{array}$$ Find the number of shares purchased.
A)8288
B)276
C)78,823
D)7492

Question

The given information applies to the day of investment in a mutual fund. Find the net asset value or number of shares
purchased as indicated.
-$$\begin{array} { l c c c } 
\hline \text { Amount } & \text { Total Fund } & \text { Total Fund } & \text { Total Shares } \
\text { Invested } & \text { Assets } & \text { Liabilities } & \text { Outstanding } \
\hline \$ 56,100 & \$ 1.52 \text { billion } & \$ 146 \text { million } & 203 \text { million } \
\hline
\end{array}$$ Find the number of shares purchased.
A)8288
B)276
C)78,823
D)7492

Quizplus · Accepted Answer

The number of shares purchased is equal to the amount invested divided by the net asset value per share. The net asset value per share is equal to the total fund assets minus the total fund liabilities, divided by the total shares outstanding. Therefore, the number of shares purchased is:$$56,100 / ((1.52 	ext { billion} - 146 	ext { million}) / 203 	ext { million}) = 8288$$

The Given Information Applies to the Day of Investment in a Mutual