Here’s an example of how breakpoint discounts on sales commissions for mutual fund investors work: Sales charge Less than $25,000, 5.75% $25,000 to $49,999, 5.50% $50,000 to 99,999, 4.75% $100,000 to $249,999, 3.75%= Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43. a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if it is less than 5.) What the minuim amount of shares? b. What minimum amount of shares must Nancy purchase to have a sales charge of 4.75%? (Round up to the nearest share even if it is less than 5.) What the minum amout of shares? What minimum amount of shares must Nancy purchase to have a sales charge of 3.75%? (Round up to the nearest share even if it is less than 5.) What the minuim amout of shares? What would be the total purchase price for (a), (b), or (c)? (Round your answers to the nearest cent.) Total Purchase Price for A B C
Here’s an example of how breakpoint discounts on sales commissions for mutual fund investors work:
Sales charge
Less than $25,000, 5.75%
$25,000 to $49,999, 5.50%
$50,000 to 99,999, 4.75%
$100,000 to $249,999, 3.75%=
Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.43.
a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to the nearest share even if it is less than 5.)
What the minuim amount of shares?
b. What minimum amount of shares must Nancy purchase to have a sales charge of 4.75%? (Round up to the nearest share even if it is less than 5.)
What the minum amout of shares?
What minimum amount of shares must Nancy purchase to have a sales charge of 3.75%? (Round up to the nearest share even if it is less than 5.)
What the minuim amout of shares?
What would be the total purchase price for (a), (b), or (c)? (Round your answers to the nearest cent.)
Total Purchase Price for
A
B
C
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)