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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 19.18. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.75% ? (Round up to the nearest share even if it is less than 5.)

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 19.18. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.75% ? (Round up to the nearest share even if it is less than 5.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 19.18. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.75%? (Round up to the nearest share even if it is less than 5.) Minimum amount of shares 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.) Minimum amount of shares
Transcribed Image Text: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 19.18. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.75%? (Round up to the nearest share even if it is less than 5.) Minimum amount of shares 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.) Minimum amount of shares
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