1. A mutual fund has an offer price of $7.82 per share and a net asset value of $7.41. What is the sales charge percent? (Round to the nearest tenth.) A. 5.2% B. 5.5%     C. 6.5% D. 94.8%   2. If Tanya's husband were to die, she and her children could live on $64,400 per year. Tanya makes $35,100 annually, and estimates additional income of $21,500 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 16.7% prevailing interest rate? (Round your answer to the nearest $1,000.) A. $40,000 B. $42,000     C. $47,000 D. $48,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. A mutual fund has an offer price of $7.82 per share and a net asset value of $7.41. What is the sales charge percent? (Round to the nearest tenth.)
A. 5.2%
B. 5.5%    
C. 6.5%
D. 94.8%
 
2. If Tanya's husband were to die, she and her children could live on $64,400 per year. Tanya makes $35,100 annually, and estimates additional income of $21,500 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 16.7% prevailing interest rate? (Round your answer to the nearest $1,000.)
A. $40,000
B. $42,000    
C. $47,000
D. $48,000
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Part 1:

Offer price = $7.82 per share 

Net asset value = $7.41 

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