The NAV of an open-ended mutual fund priced at $10 be if the load is 4%?

Question

Quizplus · Accepted Answer

Load is the charge imposed by the mutual fund company on an investor for buying or selling units in the fund. In this case, the load is 4% which means the investor will have to pay an additional charge of 4% to buy the units of the mutual fund. Therefore, the NAV (Net Asset Value) of the mutual fund will be calculated by deducting the load percentage from the price of the fund. 
NAV = $10 - ($10 x 4%) = $9.60 
Hence, the best choice is C) $9.60.

The NAV of an Open-Ended Mutual Fund Priced at $10