The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. Durin

Question

The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.2 percent. If you had invested $20,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? (Omit the "$" sign in your response.)

The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.2 percent. If you had invested $20,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? (Omit the "$" sign in your response.)

Explanation / Answer

The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share.

If you had invested $20,000 in this fund at the start of the year, the number of shares issued to you are =

Amount Invested / NAV per share = $20000 / $1 = 20,000 shares

During the year, the assets held by this fund appreciated by 1.2 percent,

then NAV at the end of the year will be = $1 + ($1 * 1.2%) = $1.012

Solution 1. how many shares would you own at the end of the year ? => We own the same number of shares as at the beginning of the year 20,000 shares with NAV $1.012 per share.

Solution 2. The NAV of The Aqua Liquid Assets Money Market Mutual Fund would rise to $ 1.012 per share from $1 per share at the beginning of the year.

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