Lee's Investment in a Mutual Fund

Lee's Investment in a Mutual Fund

If Lee bought 130 shares of a mutual fund with a NAV of $13.10 and this fund also has a load charge of 8.5%, then Lee paid $1,847.76 for his investment in the mutual fund.

How to calculate?

To calculate what Lee paid for his investment, we need to take into account the load charge of 8.5%. First, we multiply the number of shares (130) by the NAV ($13.10) to get the total value of the investment before the load charge:

130 x $13.10 = $1,703

Next, we calculate the load charge by multiplying the total value of the investment by 8.5%:

$1,703 x 0.085 = $144.76

Finally, we add the load charge to the total value of the investment before the load charge to get the total cost of the investment:

$1,703 + $144.76 = $1,847.76

Therefore, Lee paid $1,847.76 for his investment in the mutual fund.

It's important to consider load charges when making investment decisions as they can significantly impact the total cost of the investment.