In: Finance
Vora Fund charges a 12b-1 fee of 1% and maintains an expense
ratio of 0.65%. Vora 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