Loaded-up fund charge-assume rate of return on both funds

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Reference no: EM131012231

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.60%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.40%. Assume the rate of return on both funds’ portfolios (before any fees) is 9% per year.

a) How much will an investment of $100 in each fund grow to after 1 year?

Loaded up fund = $ ____

Economy fund = $ ____

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

Loaded up fund = $ ____

Economy fund = $ ____

c) How much will an investment of $100 in each fund grow to after 9 years?

Loaded up fund = $ ____

Economy fund = $ ____

Reference no: EM131012231

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