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funds are redeemed/sold Deferred sales charge nin the first year 6% ne second year 5% ne third year 4% ne fourth year 3% ne fifth year 2% ne sixth year 1% r the sixth year 0% s the amount Mark will receive for the sale of these shares when the deferred sales $94,762.50 $56,857.50 $9,607.50 $56,259.00 $16012 50

funds are redeemed/sold Deferred sales charge nin the first year 6% ne second year 5% ne third year 4% ne fourth year 3% ne fifth year 2% ne sixth year 1% r the sixth year 0% s the amount Mark will receive for the sale of these shares when the deferred sales $94,762.50 $56,857.50 $9,607.50 $56,259.00 $16012 50

Essentials Of Investments
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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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/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% 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 $94,762.50 B $56,857.50 C $9,607.50 D $56,259.00 E $16,012.50
Transcribed Image Text: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/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% 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 $94,762.50 B $56,857.50 C $9,607.50 D $56,259.00 E $16,012.50
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