The Investments Fund sells Class A shares with a front-end load of 6% and Class B...

The Investments Fund sells Class A shares with a front-end load of 6% and Class B shares with 12b-1 fees of 0.75% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 12% annually.

a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? (Round your answers to 2 decimal places.)

Class A?

Class B?

a-2. Are Class A or Class B shares the better choice for you?

Class A

Class B

b-1. If you invest in each fund and sell after 14 years, how much will you receive from each sale? (Round your answers to 2 decimal places.)

Class A?

Class B?

b-2. Are Class A or Class B shares the better choice for you?

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jeff jeffy answered 1 year ago

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