Maya Frankie invested $125,000 in the Washington Robinson Mutual Fund (Type B). The net asset of the fund at the time of purchase was $21.29 and was back-loaded, with a loading rate of 3.9%. How many shares did Maya purchase?

Question

Mathematics

Precious Francis

29 November, 22:41

Maya Frankie invested $125,000 in the Washington Robinson Mutual Fund (Type B). The net asset of the fund at the time of purchase was $21.29 and was back-loaded, with a loading rate of 3.9%. How many shares did Maya purchase?

+5

Answers (1)

Know the Answer?

Marely Huber · Answer 1

Given:

125,000 investment

net asset of the fund was $21.29 back loaded with a loading rate of 3.9%

125,000/21.29 = 5,871.30 shares.

Maya Frankie bought 5,871.30 shares of the Washington Robinson Mutual Fund (Type B.)

The 3.9% loading rate will only be applicable once Maya decides to sell her shares. This is what back loaded means.