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.)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 2FPE
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30a4b520-d508-47bb-8835-1b3546b51614%2F47d2f08d-6d9c-4fc9-87c5-10e856c5414c%2Fxxgkfq_processed.jpeg&w=3840&q=75)
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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