Romeo buys unit trusts and invests for income. He invested £50,000 in a unit trust with an offer price of £125 per unit, and sold the units after 5 years at £162 per unit. During this period he received income from the units of £6,200. This income was not reinvested in units.
(a) Calculate
(i) the number of units purchased
(ii) the excess of income over expenditure
(iii) the percentage yield per annum represented by this figure.
Getrude buys unit trusts and invests for growth.She bought 2,200 units at a price per unit of £69, plus an initial charge of 5%
(b) Calculate the total cost of the units including initial charge.