Question

A NAV of a mutual fund is ` 238. If the man purchases 150 units with an entry load of 2%, his investment is _____.

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Answer 1

Answer:

Total amount of investment is Rs 36,414

Step-by-step explanation:

Given :

A NAV of a mutual fund = Rs 238

Entry load = 2 %

No. of units to be purchased = 150

To find :

Amount of investment

Solution :

★ Purchase cost per unit to investors = NAV as on date of purchase + Entry load

⇒ 238 + 2 % of 238

⇒ 238 + 2 / 100 × 238

⇒ $238 + (\dfrac{2}{100} \times 238)$

⇒ 242.76

★ Purchase cost per unit to investors = Rs 242.76

• No. of units to be purchased = 150

★ Total amount of investment = No. of units to be Purchase × Purchase price per unit

⇒ 150 × 242.76

⇒ 36,414

Total amount of investment = Rs 36,414

Therefore,

Total amount of investment is Rs 36,414