In: Finance
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.65%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.35%. Assume the rate of return on both funds’ portfolios (before any fees) is 6% per year. |
a. |
How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Loaded-Up Fund | $ |
Economy Fund | $ |
b. |
How much will an investment of $100 in each fund grow to after 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Loaded-Up Fund | $ |
Economy Fund | $ |
c. |
How much will an investment of $100 in each fund grow to after 12 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Loaded-Up Fund | $ |
Economy Fund | $ |