A customer has signed a Letter of Intent (LOI) to buy $25,000 of XYZ mutual fund to qualify for a breakpoint that reduces the sales charge from 7% to 6%. The customer deposits $15,000 into the fund over the next 13 months. At the end of 13 months, the NAV is $20,000. How much does the customer have to deposit to complete the LOI

$10,000

Explanation:

Solution

Recall that:

A customer signed an LOI to purchase XYZ mutual fund for = $25,000

A sales charge from = 7% to 6%

Customer deposit = $15,000 for next 13 months

NAV = $20,000

Now,

We find out how much the customer will deposit to complete the letter of intent (LOI

Thus,

The amount to be deposited by customer to complete the LOI = $25,000- The amount already deposited

=$25,000 - $15,000

= $10,000

Hence, $10,000 is the amount that the customer will deposit to complete the LOI.

i think you have to let the moderators that you want your old account to be activated.