How much will invester have in account at the end of year

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Reference no: EM13333031

Consider the following four investments.

a) You invest $3,000 annually in a mutual fund that earns 10% annually, and you reinvest all the distributions. How much will you have in the account at the end of 20 years?

b) You invest $3,000 annually in a mutual fund with a 5% load fee so that only $2,850 is actually invested in the fund. The fund ears 10% annually, and you reinvest all the distributions. How much will you have in the account at the end of 20 years? (Assume that all distributions are not subject to the load fee.)

c) You invest $3,000 annually in no-load mutual fund that charges b-1 fee of 1%. The fund earns 10% annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?

d) You invest $3,000 annually in no-load mutual fund that has a 5% exit fee. The fund earns 10% annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?

Reference no: EM13333031

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