Question: A mutual fund charges 2% front-load fee. The net asset value of the fund is $14. The mutual funds net asset value is assumed to

A mutual fund charges 2% front-load fee. The net asset value of the fund is $14. The mutual funds net asset value is assumed to grow by 7% over the next 12 years. (The fund is assumed to earn 7% compounded annually for 12 years) What will the effective annual return be on the mutual fund over the 12-year period?

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6.82%

5.57%

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