Question

Mr. Naidu invested Rs. 94,070 in a mutual
fund when the NAV was Rs.460/- with the
entry load of 2.255. After received the
dividend @Rs.5 per unit he waited for a
month and redeemed all the units and
paid an exit load of 0.5%. The total gain
was Rs.1,654/-. What was the NAV at
which he redeemed the units ?​

Answer 1

Answer:

This implies that

x2+2ax=4x−4a−13

or

x2+2ax−4x+4a+13=0

or

x2+(2a−4)x+(4a+13)=0

Since the equation has just one solution instead of the usual two distinct solutions, then the two solutions must be same i.e. discriminant = 0.

Hence we get that

(2a−4)2=4⋅1⋅(4a+13)

or

4a2−16a+16=16a+52

or

4a2−32a−36=0

or

a2−8a−9=0

or

(a−9)(a+1)=0

So the values of a are −1 and 9.