SOLUTION: The information below applies to the day of investment in a mutual fund: Amount Invested Total Fund Assets Total Fund Liabilities Total Shares Outstanding

Algebra ->  Finance -> SOLUTION: The information below applies to the day of investment in a mutual fund: Amount Invested Total Fund Assets Total Fund Liabilities Total Shares Outstanding       Log On


   

Question 1042212: The information below applies to the day of investment in a mutual fund:


Amount
Invested

Total Fund
Assets

Total Fund
Liabilities

Total Shares
Outstanding

$3700 $761 million $48 million 75 million

Find the net asset value and the number of shares purchased.
Answer by Aldorozos(172) About Me  (Show Source):
You can put this solution on YOUR website!
Here is to the best of my knowledge
We subtract the liability from the total assets to calculate net asset value
761-48 = 713 mil.
We divide the net asset value to the total number of shares to see how much is the value of each share
713/75 = 9.507
Now that we are investing $3700, we have to see how many shares we can purchase
$3700/9.507 = 389 shares