Mary Canfield purchased shares in the New Dimensions Global Growth Fund. This fund doesn't charge a front-end load, but it does charge a contingent deferred sales load of 4.5 percent for any withdrawals during the first year. If Mary withdraws $7,800 during the first year, how much is the contingent deferred sales load?

The correct answer is $351.

Explanation:

Mary purchased shares in a fund which does not charge a front end load but charges a contingent deferred sales load.

She withdrew an amount of $7,800 in the first year.

The rate is given at 4.5% of withdrawals.

Contingent deferred sales load

= Withdrawal amount Interest rate

= $7,800 x 4.5%

=$7,800 x. 045

= $351

So, the contingent deferred sales load is $351.