Five Years Ago,you Purchased 220

question 99

Multiple Choice

Five years ago,you purchased 220.80 shares of a mutual fund.Since then,you have reinvested your fund dividends and acquired an additional 35.10 shares.The fund currently has an NAV of $37.60.The fund charges a contingent deferred sales charge of 5 percent for the first 2 years after which time the charge declines by 1 percent a year.How much money will you receive if you redeem all of your shares today?

• A) $9,360.32
• B) $9,429.40
• C) $9,510.18
• D) $9,633.75
• E) $9,700.79

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Definitions:

Marginal Tax Rate

The rate at which your last dollar of income is taxed, often increasing as income rises.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the share of income paid in taxes.

Tax Deductible Donation

A Tax Deductible Donation is a contribution or gift to a qualifying organization where the donor can deduct the amount from their taxable income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.