Calculate the value at the end of three years

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The Growth Fund of America sells Class A shares with a front-end load of 5%. Growth Fund also sells Class B shares with a 12b-1 fee of 1.0% per year. Assume the portfolio rate of return net of operating expenses is 9% per year. (The 12b-1 fee is not an operating expense, so it must be subtracted from the 9% return each year.)

A) Calculate the value at the end of three years of investing $10,000 in the A shares and $10,000 in the B shares.

B) Calculate the value at the end of 10 years of investing $10,000 in the A shares and $10,000 in the B shares.

Reference no: EM132662003

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