The net asset value if the fund charges a 4.5% front-end load will be $54.15
What is net asset value?
Net asset value is the value of the company's total assets minus its total liabilities.
What is front end load charges?
An upfront sales charge for investors to pay when they buy fund shares.
It means, front end load charges are considered as a liability.
How to calculate net asset value?
Net asset value = Offer price - front-end load charge
From the question, we can figure out :
Offer price = $56.70
Front-end load charge = 4.5% * $56.70 = $2.5515
So, now we can use the formula of net asset value
Net asset value = offer price - front-end load charge
Net asset value = $56.70 - $2.5515
Net asset value = $54.1485 = $54.15 (rounded to match the multiple choice)
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