Question: Loaded - Up Fund charges a 1 2 b - 1 fee of 1 . 0 % and maintains an expense ratio of 0 .

Loaded-Up Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%. Economy charges a front-end load of 2% but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 6% per year. How much will an investment in each fund grow to after:
a)1 year?
b)3 years?
c)10 years?
Assume your initial investment is $1,000.
 Loaded-Up Fund charges a 12b-1 fee of 1.0% and maintains an

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!