A hedge fund charges a management fee of 2% and an incentive fee of 20% for the performance over the money market interest rate. Compute your total after-fee returns from investing $100,000 in a fund that has made a 20% return above the money market interest rate.

Assume that the money market rate is 0%.

a.

$20,000

b.

$14,000

c.

$16,000

d.

$18,000