In: Finance
Item 8
Item 8
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 10% 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.)
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.)