Question

timshae bought units in zen mutual fund, which has a 3% back-end commission based on the original purchase price, for $54.00. if he sells the units at $75, what selling price per unit will he receive?

Answer 1

After accounting for the 3% back-end commission on the original purchase price of $54.00 per unit, Timshae will receive a net selling price of $73.38 per unit when he sells his mutual fund units at $75.

Step-by-step explanation:

When Timshae sells his mutual fund units that have a 3% back-end commission based on the original purchase price, we need to calculate the reduced selling price per unit after that commission is taken into account. The original purchase price was $54.00 and the selling price is $75. The back-end commission of 3% on the original purchase price would thus be $54.00 × 0.03 which equals $1.62. Subtracting the commission from the selling price gives us the net selling price per unit: $75 - $1.62 = $73.38.