The commission for a mutual fund with a stated commission of 4.5 percent is actually ____ percent of the amount invested.

Question

Quizplus · Accepted Answer

To find out the actual commission as a percentage of the amount invested, we need to divide the stated commission (4.5%) by 1 plus the commission percentage (4.5%):
Actual commission percentage = 4.5% / (1 + 4.5%) = 4.5% / 1.045
Actual commission percentage = 4.71%
Therefore, the answer is C.

The Commission for a Mutual Fund with a Stated Commission