Question of the Week

An 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?

a) $432
b) $768
c) $960
d) $2,400

Answer:

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.

Financial Professionals
  1. the general ledger is the record of a company's entire financial transaction history.
    Investing

    What's a General Ledger?

  2. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  3. These 5 strategies offer financial advisors a blueprint on how to grow their practices.
    Professionals

    Growth Strategies For Financial Advisors

  4. If you're considering investing in China and want to know when to buy, sell, hold or stay away, consider these economic indicators.
    Economics

    Eyeing China? Consider These Economic Indicators

  5. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving