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Kyle purchased 3000 shares of ABC fund 4 years ago at NAV of $14.0; back end...

Kyle purchased 3000 shares of ABC fund 4 years ago at NAV of $14.0; back end load begins at 5% and declines by 1% each year to 0%; current NAV $30.20; He wants to sell 50 shares from his holdings; what is Kyle's net proceed from the transaction?

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Expert Solution

Year Exit Load
                1 5%
                2 4%
                3 3%
                4 2%
                5 1%
6 and thereafter 0%
Particulars No. of Shares NAV Amount
Purchases 3000 $          14 $     42,000
Sales 50 $    30.20 $        1,510
Less: Exit Load ($1,510 * 1%) $        15.10
Net Proceeds $ 1,494.90

jeff jeffy answered 1 year ago
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