ere’s an example of how breakpoint discounts on sales commissions for mutual fund investors work: Sales charge Less than $25,000, 6% $25,000 to $49,999, 5.75% $50,000 to 99,999, 5% $100,000 to $249,999, 4% Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.06. Here is what we need to find out: A.)What minimum amount of shares must Nancy purchase to have a sales charge of 5.75%? B.) What minimum amount of shares must nancy purchase to have a sales charge of 5%? (round up to the nearest share even if it is less than 5) C.)What minimum amount of shares must Nancy purchase to have a sales charge of 4%?(Round up to the nearest share even if it is less than 5) D.) Then, find out what the total purchase price for A, B and C.
Here’s an example of how breakpoint discounts on sales commissions for mutual fund investors work:
Sales charge
Less than $25,000, 6%
$25,000 to $49,999, 5.75%
$50,000 to 99,999, 5%
$100,000 to $249,999, 4%
Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.06.
Here is what we need to find out:
A.)What minimum amount of shares must Nancy purchase to have a sales charge of 5.75%?
B.) What minimum amount of shares must nancy purchase to have a sales charge of 5%? (round up to the nearest share even if it is less than 5)
C.)What minimum amount of shares must Nancy purchase to have a sales charge of 4%?(Round up to the nearest share even if it is less than 5)
D.) Then, find out what the total purchase price for A, B and C.
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