Question

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what amount will she actually receive

Answer 1

Answer:

$6,650

Explanation:

Francesca must subtract the contingent deferred sales fee from the total amount that she will withdraw, so we first calculate the contingent deferred sales fee:

contingent deferred sales fee = $7,000 x 5% = $350

Actual cash received = total amount withdrawn - contingent deferred sales fee = $7,000 - $350 = $6,650