Question

Fidelity Investments is selling a real estate income mutual fund for $10.94 per share. The fund charges a load of 2.5%. What is the offer price?

Answer 1

The offer price is $ 11.21.

Step-by-step explanation:

Given that Fidelity Investments is selling a real estate income mutual fund for $ 10.94 per share, and the fund charges a load of 2.5%, the following calculation must be performed to determine what is the offer price:

10.94 x 1.025 = X

11.2135 = X

Therefore, the offer price is $ 11.21.