2. Fund Fees and Return

-Pioneer Fund is a no-load fund, it charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.75%.

-Preserver Fund charges a front-end load of 2% and an expense ratio of 0.5% but no 12b-1 fee.

-Assume the rate of return on both funds portfolios (before any fee) is 8% per year.

- How much will an investment of $100 in each fund grow to after:

(a). 1 year;

(b). 5 years;

(c). If the fund likes to attract long-term clients, which fee structure will it adopt?