In: Finance
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.25%. 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 10 years? (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Loaded up fund?
Economy fund?