Question

Suppose a customer rents a vehicle for three months from Dexter Rental on November 1, paying $3,000 ($1,000/month). Calculate the year-end adjusted balances of Deferred Revenue and Service Revenue (assuming the balance of Deferred Revenue at the beginning of the year is $0).

Answer 1

The load being charged by the Northern Lights Growth Fund is 2.5%.

Step-by-step explanation:

The load being charged by the fund refers to the fee or commission that is imposed by the fund when shares are purchased. In this case, Bob Newsome purchased 390 shares of the Northern Lights Growth Fund at a cost of $40.00 per share. The total commission for the purchase was $390.00. To calculate the load being charged by the fund, we need to divide the total commission by the total cost of the shares and multiply by 100 to express it as a percentage.

Load = (Total Commission / Total Cost) * 100

In this case, the total cost of the shares is calculated by multiplying the number of shares (390) by the cost per share ($40.00), which gives us $15,600.00. Substituting these values into the formula:

Load = ($390.00 / $15,600.00) * 100

Simplifying the calculation:

Load = 0.025 * 100

Load = 2.5%