A year and a half ago, Mark purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Mark decided to sell 3,000 shares on December 17, 2021,when the share price was at $19.95/share. His investment broker counseled him not to sell as the fund was a back-end loaded fund.Year funds are redeemed/soldDeferred sales chargeWithin the first year6%In the second year5%In the third year4%In the fourth year3%In the fifth year2%In the sixth year1%After the sixth year0%What is the amount Mark will receive for the sale of these shares when the deferred sales charge is applied to the selling price (ignore income taxes)?A$94,762.50B$56,857.50C$9,607.50D$56,259.00E$16,012.50

In mutual fund when you sell shares than you to pay the charges for selling.

Answered: funds are redeemed/sold Deferred sales…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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