Front load commission charge

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Assume you invest $100,000 in a mutual fund for two years. The front load commission charge is 3% deducted upfront from the original funds invested. The annual fund management fees of 0.2% are charged on the average net asset value of the fund (beginning and end of the year). Investment in the fund gives you 5% annually paid at the end of the year. Calculate:

a. Value of the investment at the beginning of year 1

b. Value of the investment at end of year 1

c. Value of the investment at end of year 2

d. Total fees paid

e. Your annual return on this investment

Reference no: EM131757100

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