Final answer:
The load equivalent as a percentage of the amount invested when the sales charge is 2% is approximately 1.96%, since it's a ratio of the sales charge to the total amount paid, including the sales charge itself.
Step-by-step explanation:
If the sales charge is 2%, this means that for every dollar invested, an additional 2 cents is paid as the cost of the investment. This fee is also known as the load, and it's a percentage of the total amount that is being invested. To calculate the load equivalent, you divide the sales charge by the total investment amount including the sales charge. That is, if you invest $1.00, you actually pay $1.02 with a 2% load. Therefore, the load equivalent is 2% of $1.02, not of the original dollar. To find the load equivalent as a percentage of the amount invested when the sales charge is 2%, you can set up the equation as follows: $1.00 + ($1.00 x 0.02) = $1.02, so the load is 0.02 / $1.02, which equals approximately 1.96%.