Indifferent between investing in the t-bill

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As a fresh student of MFIN668 you are considering investing your saving in (either): (i) A mutual fund with a 7% front-end load and expense ratio of 1.5% (charged to the value of assets at the year-end) or (ii) T-bills paying 6% interest rate. If the rate of return on the fund is 9.1875%, what should be your investment horizon (i.e. how many years) to be indifferent between investing in the T-bill or the fund (i.e. same payoff for both investment vehicles)

Reference no: EM133109537

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