1) You have $25,000 to invest in a mutual fund. You choose a fund with 2.5% front load, a 1.25% managment fee and a .5% 12b-1 fee. Assume that the managment and 12b-1 fees are charged on year end assets for simplicity. The gross annual return on the fund's shares was 13%. What was your net annual rate of return to the nearest basis point? Please show work

A)8.12%

B)7.70%

C)9.25%

D)6.72%

E)8.25%

2) You wish to invest $16,042 in a mutual fund with a NAV of $25. The fund charges a front end load of 4%. How many fund shares will you recieve? (Round to the nearest # of shares) Please show all work.

A) 595

B) 642

C) 616

D) 668

E) 628