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1. Given the following information, calculate the net asset value for the Boston Equity mutual fund:
Net asset value = $20 per share
2. The Western Capital Growth mutual fund has
Total assets: $750,000,000
Total liabilities: $7,200,000
Total number of shares: 24,000,000
What is the funds net asset value (NAV)? (LO13.1)
Net asset value = $30.95 per share
3. Jan Throng invested $24,000 in the Invesco Charter Mutual Fund. The fund charges a 5.50 percent
commission when shares are purchased. Calculate the amount of commission Jan must pay. (LO13.1)
Ms. Throng must pay $1,320 for commissions.
4. As Bart Brownlee approached retirement, he decided it the time had come to invest some of his nest
egg in a conservative fund. He chose the Franklin Utilities fund. If he invests $110,000 and the fund
charges a 4.25 percent load when shares are purchased, what is the amount of commission that Bart must
pay? (LO13.1)
Mr. Brownlee must pay $4,675 for commissions.
5. Mary Canfield purchased the New Dimensions Global Growth fund. This fund doesnt charge a frontend load, but it does charge a contingent deferred sales load of 5 percent for any withdrawals during the
first five years. If Mary withdraws $9,000 during the second year, how much is the contingent deferred
sales load? (LO13.1)
Ms. Canfield must pay a $450 contingent deferred sales load.
6. The value of Mike Jacksons shares in the New Frontiers Technology fund is $11,400. The
management fee for this particular fund is 0.80 percent of the total asset value. Calculate the management
fee Mike must pay this year. (LO13.1)
Mr. Jackson must pay a $91.20 management fee this year.
7. Betty and James Holloway invested $52,000 in the Financial Vision Social Responsibility fund. The
management fee for this fund is 0.60 percent of the total asset value. Calculate the management fee the
Holloways must pay. (LO13.1)
Mr. and Mrs. Holloway must pay a $312 management fee this year.
8. As part of his 401(k) retirement plan at work, Ken Lowery invests 5 percent of his salary each month
in the Capital Investments Lifecycle fund. At the end of the year, Kens 401(k) account has a dollar value
of $21,800. If the fund charges a 12b-1 fee of 0.75 percent, what is the amount of the fee? (LO13.1)
Number of Shares*
37.50
50.00
43.60
35.71
At the end of four years, what is the total number of shares purchased?
At the end of four years, what is the average cost for each share?
At the end of four years, the average cost for each share is $35.97.
15. During one three month period Matt Roundtops mutual fund grew by $6,000. If he withdraws 35
percent of the growth, how much will he receive? (LO13.4)
The amount Mr. Roundtop will receive is $2,100.