12.13 You have $100 to invest in a mutual fund for the next 10 months. One fund has a 5% front-end load; another has a 5% back-end load. Use the table below to compare the two funds.

Front-End Load Back-End Load For each time you invest $100, what amount is invested in the mutual fund?
What amount is taken out to pay commissions at the time of deposit?
Over the course of 10 months, at $100/month, what is the total amount invested in the mutual fund?
What has been the total amount taken out to pay commissions at the time of deposit?
The value of your fund after 10 months at 15% return is: $1,005.26 $1,058.17 If you were to withdraw the balance from the mutual fund after 10 months, what amount would be subtracted from your withdrawal to pay commissions?
What is your ending balance from the investment, after all fees have been paid?

a. Which fee option proved to be the better alternative in the above scenario?

b. In what situations is a front-end load more advantageous?

c. When is a back-end load preferable?