Question

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Answer 1

Explanation:

The fidelity investment mutual funds is $10.92 per share.

The fund charges 2.5%.

So, if 2.5% is charged,

Then, 2.5% of the share is

2.5% of $10.92 = 2.5 / 100 × $10.92

2.5% of $10.92 = $0.273

Then, total offer price is 0.273 + 10.92

Therefore, total offer is $11.193