Your neighbor, Kitty Kardashian, of Philadelphia, Pennsylvania, bought $5,000 worth of mutual funds with a back-end load of 5 percent if she sells within the first year. It decreases 1 percent a year afterward. 

a) If Kitty sells during the third year, how much will be the back-end load? 

b) Did Kitty make a good decision buying such a mutual fund?

Answer rating: 100% (QA)

a Now that backend load is 5 for the first year and decreases by 1 every year and if ... View the full answer