Question

A consumer invests ​$23 000 in a mutual fund with a 2​% front end load and a 2.7​% annual expense​ fee, which is charged as a percentage of the​ consumer's balance at the end of the year. The fund increases in value by 19.9​% over the first year. Complete parts​ (a) through​ (e) below. ​(a) What is the amount of money charged up front just for investing in the mutual​ fund? The charge up front is ​$ nothing. ​(Simplify your answer. Do not include the​ $ symbol in your answer. Round to two decimal places as​ needed.) ​(b) After subtracting the front end​ load, the remainder of the money grows by 19.9​% over the first year. What is the ending balance before the expense​ fee? The ending balance before the expense fee is ​$ nothing. ​(Simplify your answer. Do not include the​ $ symbol in your answer. Round to two decimal places as​ needed.) ​(c) What is the expense fee charged on this​ balance? The expense fee is ​$ nothing. ​(Simplify your answer. Do not include the​ $ symbol in your answer. Round to two decimal places as​ needed.) ​(d) What is the final ending balance after the expense fee is​ deducted? The final ending balance after the expense fee is ​$ nothing. ​(Simplify your answer. Do not include the​ $ symbol in your answer. Round to two decimal places as​ needed.) ​(e) What is the total rate of return for this first​ year? The total rate of return is nothing​%. ​(Simplify your answer. Round to two decimal places as​ needed.)

Answer 1