How much will an investment in each fund grow

Reference no: EM133664060

Problem

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 6% per year.

Task

1. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

2. How much will an investment of $100 in each fund grow to after 3 years?

3. How much will an investment of $100 in each fund grow to after 10 years?

Reference no: EM133664060

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