Final answer:
An open-end fund has a net asset value of $13.60 per share and is sold with a front-end load of 4%. The front-end load is a fee charged when an investor buys shares of the fund.
Step-by-step explanation:
The question is about an open-end fund, specifically its net asset value (NAV) and front-end load. The net asset value refers to the per share value of the fund's assets, in this case, $13.60 per share. The front-end load is a fee charged when an investor buys shares of the fund, in this case, 4% of the investment amount.
So, if a student invests $100 in the open-end fund, they will receive 100/13.60 = 7.35 shares. And with a front-end load of 4%, the fee charged would be 100 x 0.04 = $4. So, the student's actual investment would be $100 - $4