You invest $4,800 in a money market fund at the beginning of the year. The fund's assets appreciate by 2.7 percent over the year. How many shares of the fund do you own at the end of the year?

Question

Quizplus · Accepted Answer

To find the number of shares owned at the end of the year, divide the initial investment by the price per share at the end of the year. Since the fund appreciated by 2.7%, the price per share at the end of the year will be 1.027 times the initial price per share. Thus, the number of shares owned is:
$4,800 / (1.027 x $1) = 4,929.60 shares

You Invest $4,800 in a Money Market Fund at the Beginning