Answer the following​ questions, assuming that the mutual fund quote below is one that you found online today. Complete parts​ (a) through​ (c) below.

A certain Limited-Term Tax-Exempt Fund (CMLTX)Total Returns (%) 3, 5 and 10 year returns are annualized.FundYTD1-Yr5-Yr10-YrNAV.1-Day Net Change1-Day Return$0.000.0%$10.792.65%3.87%3.65%3.14%

Question content area bottom

Part 1

a. Suppose you invest

​$10001000

in this fund today. How many shares will you​ buy?

enter your response here

shares

​(Round to two decimal places as​ needed.)

To find out how many shares you can buy with $1,000, you need to divide the amount you are investing by the Net Asset Value (NAV) of the fund.

The formula to calculate the number of shares is:

\[
\text{Number of Shares} = \frac{\text{Investment Amount}}{\text{NAV}}
\]

Given:
- Investment Amount = $1,000
- NAV = $10.79

\[
\text{Number of Shares} = \frac{1000}{10.79} \approx 92.68
\]

So, you can buy approximately **92.68 shares**.

Would you like a detailed explanation or have any questions?

Here are 5 related questions to consider:
1. How do changes in NAV affect the number of shares you can buy?
2. What does NAV represent in a mutual fund?
3. How are the returns (YTD, 1-Yr, 5-Yr, 10-Yr) calculated for this mutual fund?
4. What are the advantages of investing in a tax-exempt fund?
5. How does the 1-Day Return impact your investment decision?

**Tip:** When investing in mutual funds, consider not just the current NAV but also the historical performance and expense ratios.

Answer the following​ questions, assuming that the mutual fund quote below is one that you found online today. Complete parts​ (a) through​ (c) below.

A certain Limited-Term Tax-Exempt Fund (CMLTX) Total Returns (%) 3, 5 and 10 year returns are annualized. Fund YTD 1-Yr 5-Yr 10-Yr NAV 1-Day Net Change 1-Day Return $0.00 0.0% $10.79 2.65% 3.87% 3.65% 3.14%

Part 1

a. Suppose you invest $1,000 in this fund today. How many shares will you buy?

(Round to two decimal places as needed.)

Learn how to calculate the number of shares you can buy when investing $1,000 in a Limited-Term Tax-Exempt Fund (CMLTX) with a Net Asset Value (NAV) of $10.79. This math problem involves basic division and rounding techniques, suitable for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation