Calculate the cumulative amount of funds

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Question - An investor who starts with $10000 and can choose between three funds that all earn an annual 12% return on investment before fees but have different fee structure. Fund A has total operating expenses of 0.5%, no load, and no other charges. Fund B has no load but has 1% in management expenses and 0.5% in fees. Finally fund C has 1% in management expenses, no other charges, but assesses an 8%front end load on purchases.

a) Calculate the cumulative amount of funds in the following time horizons of 5, 10, 15 and 20 years?

b) Which fee structure provides higher proceeds at the end of investment horizons?

Reference no: EM132984598

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