Question

Mary Cooper just purchased 180 shares in the All-American Fidelity Fund. The purchase cost for each share was $13. If this fund charges a 3 percent load, what is the total amount of commission she will pay the investment company?
A. $35.10
B. $65.20
C. It is impossible to calculate the amount of the commission from the information provided.
D. $70.20
E. $75.20

Answer 1

Answer:

Cost of purchasing the shares = 180 x $13 = $2,340

Commission = 3% x $2,340 = $70.20

Explanation:

In this case, we need to calculate the cost of purchasing the shares. Thereafter, we will calculate commission based on 3% load (3% of $2,340).