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Back-end Load
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? Round your answer to the nearest whole number. %
B) Did Kitty make a good decision buying such a mutual fund?
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