Suppose that a $$200$M VC has a management fee of $2\mathrm{.}5\%$ per year for the first $5$ years, with a reduction of $0\mathrm{.}25\%(25$ basis points$)$ in each year thereafter. All fees are paid on committed capital, and the fund has a $10-$year life. What are the lifetime fees and investment capital for this fund?

Lifetime fees$$

$=$

$42\mathrm{.}5$

$$

$$

$$

Investment capital$=$

$167\mathrm{.}5$

Lifetime fees$$

$=$

$51$

$$

$$

$$

Investment capital$=$

$215\mathrm{.}5$

Lifetime fees$$

$=$

$42\mathrm{.}5$

$$

$$

$$

Investment capital$=$

$157\mathrm{.}5$

Lifetime fees$$

$=$

$40$

$$

$$

$$

Investment capital$=$

$167\mathrm{.}5$