Not sure how to arrive at this question's answer

FINRA FINRA SIE
1

For some reason I could not figure out the math on this one: 8BJCY-KKFYM
I tried everything I could think of.
Some of the decimal places here (On Achievable, at times) seem out of place (?) and the math logic confuses me with .25%, etc. Is 100% meant to be the number 1??

Thanks for all the help!!

Edward

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Hey @EdwarDallas, here’s an example:

Shiloh redeems 900 shares of a growth mutual fund with a NAV of $38.15 and a POP of $39.67. The fund has a 0.50% redemption fee. Shiloh will receive:

And here’s how to solve it:

  1. Mutual funds are sold at NAV, so with 900 shares, we have 900 * $38.15 = $34,335 in proceeds
  2. The redemption fee is 0.50%, which means the investor gets 100% - 0.50% = 99.5% of the proceeds
  3. Multiplying it out, we get $34,335 * 99.5% = $34,163.325 as the amount they will receive

The investor receives the proceeds minus the redemption fee. We specify it as 100% - 0.50% to keep it in the percent format, but yeah, 100% is the same as 1. Written as decimals, it would be 1 - 0.005 = 0.995, then $34,335 * 0.995.