Question

The NAV of a unit in a mutual fund scheme is Rs. \[10.65\] then find the amount required to buy 500 such units.
A) 5325
B) 5235
C) 532500
D) 53250

Answer 1

Hint:
We are given the net asset value of a unit in the mutual fund so; we will use that only to find the amount for 500 such units. As the amount is given for one unit and we have to find for 500 units so we simply multiply the amount of one unit with 500 to find the amount for 500 such units.

Complete step by step solution:
First, consider the amount given for one unit.
We have the net asset value of a unit in a mutual fund as Rs. \[10.65\].
Thus, we know that if we are given the smaller amount and asked for the amount of material in bulk then we simply multiply the amount for one unit with the number of units we have to find the amount.
So, here we have to find the amount of 500 units.
Thus, we can form a formula that is,
\[{\text{Total amount = NAV of a unit }} \times {\text{ no of units}}\]
This means if we multiply the number of units with the amount of single unit then we will get the desired result.
Now, we have,
NAV of a unit = Rs. \[10.65\] and Number of units = 500
Thus, we will substitute the values in the formula,
Hence, we get,
\[
  {\text{Total amount = 10.65 }} \times {\text{ 500}} \\
  {\text{ = 5325}} \\
\]
Thus, the amount for 500 units is given by Rs. \[5325\]

Hence, option A is correct.

Note:
Whenever the smaller amount is given and we have to calculate the larger amount then we just multiply the amount for one unit with the number of units and when we are given the larger amount and we have asked for the amount of single unit then we divide the larger amount with the number of units to determine the amount for one unit.