Question

The current price per share of Capital Mutual Fund is $15.55. The year to date return is +11.4 percent. What was the price per share at the beginning of the year?

Answer 1

X (1+0.114)=15.55
Solve for x
X=15.55÷(1+0.114)
X=15.55÷1.114
X=13.96

Answer 2

$13.96.

Explanation:

Let x represent price per share at the beginning of the year.

We have been given that the current price per share of Capital Mutual Fund is $15.55. The year to date return is +11.4 percent. This means that current price is 111.4 (100+11.4) percent of price at the beginning of the year.

`111.4\%\text{ of }x=\$15.55`

`(111.4)/(100)*x=\$15.55`

`1.114x=\$15.55`

`(1.114x)/(1.114)=(\$15.55)/(1.114)`

`x=\$13.958707\approx \$13.96`

Therefore, the price per share at the beginning of the year was $13.96.