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In this scenario, assume that Nyla's parents have rolled over a portion of their retirement savings into their self-directed IRA and that these dollars are
In this scenario, assume that Nyla's parents have rolled over a portion of their retirement savings into their self-directed IRA and that these dollars are temporarily parked in a money market account, where they earn interest. After speaking with you over the Thanksgiving dinner to which Nyla invited you, Nyla's parents decided to invest in a stock mutual fund - but gradually, using dollar-cost averaging in five $5,000 transactions on the first business day of each year. (Nyla's parents could minimize the sales charge on the total investment by availing themselves of the "letter of intent" privilege.) Nyla's parents have adopted a dollar-cost averaging strategy. Answer the following questions using the information provided in the case log and the table above. a. At the end of five years, what is the total amount invested? b. At the end of five years, what is the total number of mutual fund shares purchased? c. At the end of five years, what is the average cost for each mutual fund share
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