"A customer has signed a Letter of Intent (LOI) to buy $25,000 of XYZ mutual fund to qualify for a breakpoint that reduces the sales charge from 7% to 6%. The customer deposits $15,000 into the fund over the next 13 months. At the end of 13 months, the NAV is $20,000. How much does the customer have to deposit to complete the LOI?"

The customer has to deposit $10,000

Explanation:

Here, we want to know the amount that needs to be deposited by the customer to complete the LOI

This can be deduced using a simple mathematical calculation ;

Amount to be deposited by the customer = 25,000 - amount deposited already

From the question, the amount deposited already = $15,000

So the amount to be deposited by the customer = 25,000-15,000 = $10,000