QUESTION 4 (5 Marks) Lesson 4Fee Structure On January 4, 2007, David bought 350 units of the Sarissa Growth Fund, at $12 34 per unit, for a total outlay of $4,319 He purchased the fund on a deferred sales charge (DSC) basis that is calculated on the market value, with the following schedule Time of Redemption Charge Within the first year 7 2 nd year 6 3 rd year 5 4 th year 4 5 th year 3 6 th year 2 7 th year 1 After 7th year No Charge On May 15, 2013, David redeems 300 units of the fund at a NAVPU of $16 50 REQUIRED How much cash does David receive after the units have been redeemed and the deferred sales charges have been applied Show all of your work

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Question: QUESTION #4 (5 Marks) Lesson 4Fee Structure On January 4, 2007, David bought 350 units of the Sarissa Growth Fund, at $12.34 per unit, for

QUESTION #4 (5 Marks)

Lesson 4Fee Structure

On January 4, 2007, David bought 350 units of the Sarissa Growth Fund, at $12.34 per unit, for a total outlay of $4,319. He purchased the fund on a deferred sales charge (DSC) basis that is calculated on the market value, with the following schedule:

Time of Redemption	Charge
Within the first year	7%
2^nd year	6%
3^rd year	5%
4^th year	4%
5^th year	3%
6^th year	2%
7^th year	1%
After 7th year	No Charge

On May 15, 2013, David redeems 300 units of the fund at a NAVPU of $16.50.

REQUIRED:

How much cash does David receive after the units have been redeemed and the deferred sales charges have been applied? Show all of your work.

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