How much money would you need to purchase 400 shares of a mutual fund with an NAV of $55 per share and a 3% load?

Question

Quizplus · Accepted Answer

To purchase 400 shares of the mutual fund, we need to calculate the total cost including the load.

The load is 3%, which means we need to pay an additional 3% of the NAV per share for each share purchased.

The NAV per share is $55, so the total cost per share including the load is:

$55 + ($55 x 0.03) = $55 + $1.65 = $56.65

To purchase 400 shares at $56.65 per share, we need:

400 x $56.65 = $22,660

Therefore, the answer is D: $22,660.

How Much Money Would You Need to Purchase 400 Shares