Mary Cooper just purchased 100 shares in the All-American Fund.The purchase cost for each share was $10.If this fund charges a 3 percent load,what is the total amount of commission she will pay the investment company?

Question

Quizplus · Accepted Answer

The load is a fee charged when purchasing the shares, calculated as a percentage of the purchase amount. Here, a 3 percent load on the purchase of 100 shares at $10 each equals $300 total purchase amount * 0.03 = $9. However, the correct calculation for a 3 percent load on $300 is actually $9, not $30. This appears to be a mistake in the interpretation of the options provided. The correct commission should indeed be $300 * 0.03 = $9, but this option is not listed. Given the options, none directly reflect the correct calculation, suggesting a misunderstanding in the explanation provided.

Mary Cooper Just Purchased 100 Shares in the All-American Fund