You invest $5,000 annually for 25 years into a mutual fund that earns 12% annually, and you reinvest all distributions.

a. What will your shares be worth in 25 years, assuming no load fees or 12b-1 fees?

b. If the fund had a 6% load fee (that distributions are not subject to), what will your shares be worth in 25 years?

c. If the fund has no load fees, but charges 12b-1 fees of 1%, what will your shares be worth in 25 years?

d. If the fund has no load fees or 12b-1 fees, but charges a 6% exit fee, what will your shares be worth if you exit after 25 years?

Answer rating: 100% (QA)

a To calculate the value of the shares in 25 years without any fees we can use the future value form... View the full answer