Here\'s an example of how breakpoint discounts on sales commissions for mutiual
ID: 3197893 • Letter: H
Question
Here's an example of how breakpoint discounts on sales commissions for mutiual tund investors work Sales charge Less than $25 000, 55% $25.000 to $49999, 525% $50,000 to 99.999 45% $100,000 to $249.999. 3 5% Nancy Dolan is interested in the T Rowe Prike Mid Cap Fund. Assume the NAV s 19 08 aWhat minimum amountof shares must Nancy purchase to have a saies charge of 525%? (Round up the nearest share even if it is less than 5.) Minimum amount of shares1 b. What minimum the nearest share even it it is less than 5) Minimum amount of shares 2621 amount of shares must Nancy purchase to have a saes charge of 45%? (Round up c. What minimum amount of shares must Nancy purchase to have a sales charge of 3 5%? (Round up the nearest share even if it is less than 5.) Minimum amount of shares 5242 d. What would be the total purchase pice for (a), (b), or (c)? (Round youranswers to the nearest Total purchase price o)Explanation / Answer
Total purchase price of (a) = 19.08 * 1311 = $25013.88
Total purchase price of (b) = 19.08 * 2621 = $50008.68
Total purchase price of (c) = 19.08 * 5242 = $100017.36
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