Question

Tiffany scott puts $10,000 into a load mutual fund. she knows that her up-front sales commission is 6%. how much of her money actually goes to buy shares in the mutual fund?

Answer 1

If the upfront sales commission is 6%, then $9,400 will go to actually buy shares. This is because 6% of $10,000 is $600. Thus, to find the answer, you must subtract $600 from the initial amount, $10,000. Thus, $10,000 - $600 = $9,400. So, there is $9,400 left over to buy shares in the mutual fund.