Question

Taliyah invested $21,000 in the American Funds Euro-Pacific Growth fund. This fund charges a sales charge of 4.35%. What is the net amount available for investment?

A. $14,086.50
B. $652.50
C. $10,500.00
D. $913.50
E. $20,086.50

Answer 1

The sales charge of 4.35% is deducted from the initial investment amount of $21,000, so the net amount available for investment is:

$21,000 - (4.35% * $21,000)

= $21,000 - $913.50

= $20,086.50

Therefore, the answer is E. $20,086.50.