Your neighbor, Kitty Kardashian, of Philadelphia, Pennsylvania, bought 55,000 worth of mutual funds with a back-end load of 6 percent if she sells within the first year. It decreases 1 percent a year afterward.

a. If Kitty sells during the third year, how much will be the back-end load? Round your answer to the nearest whole number. %
A year ago, George letson, from Orbit City, Texas, invested $1,400 by buying 140 shares of the Can't Lose Mutual Fund, an aggressive growth no-load mutual fund. George reinvested his dividends, so he now has 159 shares. So far, the NAV for George's Investment has risen from $10 per share to $13.25.

a. What is the percentage increase in the NAV of George's mutual fund? Round your answer to one decimal place. %

b. If George redeemed the first 140 shares of his mutual fund investment for $13.25 per share, what would be his capital gain over the amount Invested? Round your answer to the nearest dollar.$

c. Assuming George pays income taxes at the 25 percent rate, how much income tax will he have to pay if he sells those first 140 shares? George has owned the shares for less than a year. Round your answer to the nearest cent. $

Answer rating: 100% (QA)

a If ketty sells in the third year his back end load will be 4 a Base price No of units ... View the full answer