Neuer started a systematic investment program by buying $200.00 worth of mutual funds on the first day of every month starting on February 1. When you purchase mutual funds, you purchase units in the fund. Neuer purchased as many units as he could with his $200.00, including fractions of units. Unit prices for the first six months were $10.00, $10.60, $11.25, $9.50, $9.20, and $12.15, respectively.
(a) What is the simple average of the unit prices?
(b) What is the total number of units purchased during the first six months (correct to three decimals)?
(c) What is the average cost of the units purchased?
(d) What is the value of Neuer’s mutual fund holdings on July 31 if the unit price on that date is $11.90?
Solve the following problem involving an arithmetic average.