christopher puts $2,500 into a mutual fund with an 8 1/2 percent front end load. when the sale has been…

christopher puts $2,500 into a mutual fund with an 8 1/2 percent front end load. when the sale has been completed, what is the net asset value of christophers shares?\na. $2,745\nb. $2,287.50\nc. $3,202.50\nd. $2,500

christopher puts $2,500 into a mutual fund with an 8 1/2 percent front end load. when the sale has been completed, what is the net asset value of christophers shares?\na. $2,745\nb. $2,287.50\nc. $3,202.50\nd. $2,500

Answer

Explanation:

Step1: Convert the percentage to decimal

The front - end load is $8\frac{1}{2}%=\frac{17}{2}\div100 = 0.085$.

Step2: Calculate the amount of the load

The load amount is $2500\times0.085 = 212.5$.

Step3: Calculate the net asset value

The net asset value is $2500 - 212.5=2287.5$.

Answer:

B. $2,287.50