Chyra redeemed 175 shares of stock she owned in the fund shown below.
| Name of Fund | NAV | Offer Price |
| :----------- | :------ | :---------- |
| CAH Group | $15.83 | $16.27 |
What were Chyra's proceeds?
a. $77.00
b. $2,770.25
c. $2,847.25
d. $5,617.50
Answer (2)
Multiply the number of shares by the Net Asset Value (NAV) to find the total proceeds.
Calculate: 175 × 15.83 .
The result is the total proceeds Chyra received.
Chyra's proceeds are $2 , 770.25 .
Explanation
Understanding the Problem Chyra redeemed 175 shares of stock. To calculate Chyra's proceeds, we need to multiply the number of shares by the Net Asset Value (NAV) since she is redeeming the shares. The NAV is the price at which shares are redeemed.
Setting up the Calculation We are given that the NAV is $15.83 per share. Therefore, we need to multiply the number of shares (175) by the NAV ($15.83).
Calculating the Proceeds Now, we perform the multiplication: 175 × 15.83 = 2770.25
Final Answer Therefore, Chyra's proceeds from redeeming 175 shares are $2,770.25.
Examples
Understanding stock values and calculating proceeds is essential in personal finance. For example, if you own shares in a company and decide to sell them, you would calculate your proceeds by multiplying the number of shares you sell by the current market price (similar to the NAV in this problem). This calculation helps you determine the amount of money you will receive from the sale, which is crucial for financial planning and investment decisions. Knowing how to calculate proceeds ensures you can accurately assess your investment gains or losses.
Chyra redeemed 175 shares of stock at a Net Asset Value (NAV) of $15.83 per share. Multiplying the shares by the NAV gives her total proceeds of $2,770.25. The correct answer is b. $2,770.25.
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