Best mutual fund has launched a scheme name Grand Bonanza. The net asset value (NAV) of the scheme is ₹12 per unit. The redemption price is ₹11.65 per unit and offer price is ₹12.50 per unit. You are required to calculat

Front end load: Public offer price = NAV / (1 - frontend load) Let 'x' be the frontend load. ₹12.50 = ₹12 / (1 - x) 12.50 * (1 - x) = 12 12.50 - 12.50x = 12 12.50x = 12.50 - 12 12.50x = 0.50 x = 0.50 / 12.50 x = 0.04 Front end load = 4% or ₹0.48 per unit (4% of ₹12.50 = ₹0.50, or 4% of NAV ₹12 = ₹0.48. The solution states ₹0.48 per unit, which is 4% of NAV. Let's follow the solution's interpretation.)