individual has started investments of $100/month into
a spread-load, periodic payment plan. What is the
maximum sales charge that may be taken by the company
over the first 48 months?
The correct answer is b.
When a periodic payment (or contractural) plan company
is organized as a spread-load company, it may take
sales charges of 20% on any deposit, but may not
exceed an average of 16% over the first 4 years. 48
deposits × $100 = $4,800 × 16% = $768.