Series 7 - General Securities Representative Exam

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Last year, John Funderton invested in a front end load mutual fund that with $26,000 and paid a 4% sales charge. The fund includes an ROA. This year, John is investing $40,000 in the same fund. There is a breakpoint at $50,000 that reduces the sales charge to 3.5%. What will the sales charge be on John's $40,000 investment this year?

$910
A
$840
B
$1,600
C
$1,400
D

Explanations

An ROA - Right Of Accumulation allows an investor a discount on current mutual fund purchase by combining the current and previous fund purchases to reach a breakpoint. John will pay the 3.5% load fee on the new $40,000 investment. $1,400

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