Young raxxi invested in a back-loading mutual fund at a rate of 3%. the net asset value at the time of purchase was $18.48. at the time young sold his fund shares the net asset value was $18.25. his investment was $9,240. considering the back-end load, how much profit or loss did young make on his investment?

Question

Business

Aaron

25 July, 07:20

Young raxxi invested in a back-loading mutual fund at a rate of 3%. the net asset value at the time of purchase was $18.48. at the time young sold his fund shares the net asset value was $18.25. his investment was $9,240. considering the back-end load, how much profit or loss did young make on his investment?

+1

Answers (1)

Know the Answer?

Ariel Castro · Answer 1

If we are to consider the back-end loan, the profit or loss made during the course of the investment can be computed by first determining the number of shares Young Raxxi was able to buy and sell using the total investment amount. The shares Young bought was at 500 and the shares sold was at 506. The difference between the asset share value is - (negative) $0.23, and by multiplying it to the 500 shares Young bought, the net loss was at $115.00.