Alex Invested $10,000 in a Mutual Fund Two and One-Half

question 13

Multiple Choice

Alex invested $10,000 in a mutual fund two and one-half years ago when the NAV of the fund was $25.Today,the NAV has risen to $28.30.Since the time of his original investment,Alex has obtained an additional 54.36 shares by reinvesting the fund distributions.The fund charges a contingent deferred sales charge of 6 percent the first year with the charge decreasing by 1 percent each year.How much money will he receive if he redeems his shares today?

• A) $11,633.78
• B) $11,930.52
• C) $12,344.05
• D) $12,858.39
• E) $13,501.31

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Definitions:

Administrative Expenses

Expenses related to the general operation of a business, such as salaries of executive officers and costs of general services.

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales commissions, and store operations.

Factory Overhead Rate

A measure used to assign the total indirect manufacturing costs to individual units of production, often based on a standard costing system or activity-based costing.

Machine Hours

A measure of the total time that machines are operating during a specific period.