Question

A quotation for a mutual fund shows a nav of $9.60 and an offer price of $10.00. with an investment of $1,000, you can buy ______ shares.

Answer 1

140 shares in total. Divide $1000.00/$10.00= 100 shares. That leaves $0.40 afterwards from each share purchased. Multiply .40 x 10.00. The decimal moves to the right twice making the availibily of 40 shares. Thus 40 shares + 100 shares = 140 shares. Don't forget the %40 tax on all earnings from income gained either at the end of the year after dividends and splits.