The offering price of an open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%. What is its net asset value?

$11.685

Explanation:

Calculation for the net asset value

Since the front-end load is 5% this means that we are going to deduct 5% from 100% which will give us 95%, therefore 95% will be our front-end load percentage.

Now let find the Net asset value

Using this formula

Net asset value=Front-end load Percentage × Offering price

Let plug in the formula

Net asset value=95%×$12.30

Net asset value=$11.685

Therefore the Net asset value will be $11.685