Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the
same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated.
-$$\begin{array} { l l l }
\hline & \text { Number of } & \text { Monthly } \
\text { Beginning } & \text { Shares } & \text { Percentage } \
\text { NAV } & \text { Purchased } & \text { Return } \
\hline \$ 8.02 & 246 & 1.76 \% \
\hline
\end{array}$$ Find the first monthly return.

Question

Assume that the given mutual fund investment earns monthly returns that are reinvested and subsequently earn at the
same rate. Find the beginning value of the investment, first monthly return, or effective annual rate of return as indicated.
-$$\begin{array} { l l l } 
\hline & \text { Number of } & \text { Monthly } \
\text { Beginning } & \text { Shares } & \text { Percentage } \
\text { NAV } & \text { Purchased } & \text { Return } \
\hline \$ 8.02 & 246 & 1.76 \% \
\hline
\end{array}$$ Find the first monthly return.

Quizplus · Accepted Answer

The first monthly return can be calculated by multiplying the beginning NAV ($8.02) by the number of shares purchased (246) and then applying the monthly percentage return (1.76%). First, find the total investment value: $8.02 * 246 = $1972.92. Then, calculate the return: $1972.92 * 0.0176 = $34.72.

Assume That the Given Mutual Fund Investment Earns Monthly Returns