Personal Finance 1st Edition by Jack R. Kapoor

Exercise 25

Calculating Contingent Deferred Sales Loads. Mary Canfield purchased the New Dimensions bond fund. While this fund doesn’t charge a front-end load, it does charge a contingent deferred sales load of 4 percent for any withdrawals in the first five years. If Mary withdraws $7,500 during the second year, how much is the contingent deferred sales load?

Step 1 of 2

Investor MC purchased bond fund of ND. 4% of contingent deferred sales load will be charged on this fund on withdrawals in the first five years. In this occasion, no front-end load will be charged on the fund.