Question: ****I JUST NEED HELP FINDING THE TOTAL PURCHASE PRICE FOR (b) and (c)**** Heres an example of how breakpoint discounts on sales commissions for mutual
| ****I JUST NEED HELP FINDING THE TOTAL PURCHASE PRICE FOR (b) and (c)****
Heres an example of how breakpoint discounts on sales commissions for mutual fund investors work: |
| Sales charge |
| Less than $25,000, 5.25% |
| $25,000 to $49,999, 5% |
| $50,000 to 99,999, 4.25% |
| $100,000 to $249,999, 3.25% |
| Nancy Dolan is interested in the T Rowe Price Mid Cap Fund. Assume the NAV is 19.21. |
| a. | What minimum amount of shares must Nancy purchase to have a sales charge of 5%?(Round up to the nearest share even if it is less than 5.) |
| Minimum no. of shares |
| b. | What are the minimum shares Nancy must purchase to have a sales charge of 4.25%?(Round up to the nearest share even if it is less than 5.) |
| Minimum no. of shares |
| c. | What are the minimum shares Nancy must purchase to have a sales charge of 3.25%?(Round up to the nearest share even if it is less than 5.) |
| Minimum no. of shares |
| d. | What would be the total purchase price for (a), (b), or (c)? (Round your answers to the nearest cent.) |
| Total purchase price | |
| (a) | $ |
| (b) | $ |
| (c) | $ |
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