You want to buy 1,200 shares of a mutual fund that has an NAV of $27.80. The fund charges a 3.75% front-end load. How much will you have to spend to make this purchase?

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Quizplus · Accepted Answer

To buy 1,200 shares at an NAV of $27.80 with a 3.75% front-end load, first calculate the cost without the load: 1,200 shares * $27.80 = $33,360. Then, calculate the load amount: $33,360 * 3.75% = $1,299.74. Add the load to the initial cost to get the total: $33,360 + $1,299.74 = $34,659.74.

You Want to Buy 1,200 Shares of a Mutual Fund