35.8k views
3 votes
Complete the table below. Tim Jones bought 100 shares of mutual fund ABC at $5.25 with no load. And 100 shares of DEF at $6.00 which had a load of $275 dollars. Purchase Price Commission Total Cost Sales Price Commission Cash to Tim = Sales Price - Commission Cash to Tim ÷ Total Cost (nearest tenth) ABC = $525 0 $525 $850 0 $ 850.00 137 % (nearest 1%) DEF = $600 $275 $ 875.00 $1200 0 $ 1,200.00 % (nearest 1%)

1 Answer

3 votes

Answer: 1.4%

Explanation:

To complete the table:

For mutual fund ABC:

- Tim bought 100 shares of mutual fund ABC at $5.25 per share, resulting in a purchase cost of $525 ($5.25 x 100).

- Since there is no load, there is no commission fee.

- The total cost is the same as the purchase cost, which is $525.

- If the sales price of the mutual fund ABC is $850 with no commission fee, then the cash to Tim would be $850.

- The cash to Tim divided by the total cost is ($850 - $0) / $525 = 1.619.

- Rounded to the nearest tenth, the result is 1.6.

- To express this as a percentage, we multiply by 100 to get 160% (rounded to the nearest 1%).

For mutual fund DEF:

- Tim bought 100 shares of mutual fund DEF at $6.00 per share, resulting in a purchase cost of $600 ($6.00 x 100).

- There is a load of $275, which is the commission fee.

- The total cost is the purchase cost plus the commission fee, which is $600 + $275 = $875.

- If the sales price of mutual fund DEF is $1200 with no commission fee, then the cash to Tim would be $1200.

- The cash to Tim divided by the total cost is ($1200 - $0) / $875 = 1.371.

- Rounded to the nearest tenth, the result is 1.4.

- To express this as a percentage, we multiply by 100 to get 140% (rounded to the nearest 1%).

Please note that the table does not provide the percentage for mutual fund DEF, as it is missing from the original question.

User Brian Antonelli
by
7.6k points