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hree years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $24.00 per share. The fund has a 3% load that you elect to pay in addition to your initial investment to ensure that the full NAV is invested. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $27.98 per share. What is the compounded rate of return on this investment over the 3-year period? Select one: a. 7.58% b. 7.08% c. 24.51% d. 7.53% e. 3.72%

hree years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $24.00 per share. The fund has a 3% load that you elect to pay in addition to your initial investment to ensure that the full NAV is invested. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $27.98 per share. What is the compounded rate of return on this investment over the 3-year period? Select one: a. 7.58% b. 7.08% c. 24.51% d. 7.53% e. 3.72%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 8FPE
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Three years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $24.00 per share.  The fund has a 3% load that you elect to pay in addition to your initial investment to ensure that the full NAV is invested.  Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $27.98 per share. What is the compounded rate of return on this investment over the 3-year period?

 

Select one:

a. 7.58%

b. 7.08%

c. 24.51%

d. 7.53%

e. 3.72% 

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