question 24

Question 24: (1 Point) On January 1, 2020, Lenny opened his first Tax-Free Savings Account (TFSA) and deposited $40,000. He invested this money in 4,000 shares in Quick Growth mutual fund at $10/share. As of today, April 29. 2020. Lenny's only investment grew to $26.00/share! Despite the great returns, Lenny is contemplating selling the shares. What would be the difference in his pocket If he sold them today at $26 or next year at the same price (assuming the same $26). This is a back-end loaded fund. Do not take taxes into consideration. Note: Use the Declining Redemption Schedule below to determine the back-end load fee that Lenny will have to pay the amount of the fee is based on the value of the fund when it is redeemed), Lenny's broker also charges a 2% commission on the sale after the Deferred Sales Charge is applied. Declining Redemption Schedule | Year funds are redeemed sold Deferred Sales Charge Within the first year A6% In the second year MOMMER 5% In the third year 4% In the fourth year INHASRAE3% In the fifth year P ERMANENTE 2% In the sixth year W ERNANNAE1% After the sixth year 0% $1,250 $1,004 $1,280 $990 $1,019