An individual invests 40,000 in a load Mutual Fund for three years. The load fees are in the form of an up-front commission charge of 5% of the initial capital and is deducted from the investment. In addition, annual transaction costs and management fees combined are 1.45 percent. The annual fees are charged on the average net asset value (NAV) invested in the fund and are recorded at the end of each year. The return on the fund is 6% percent each year paid on the last day of the year. If the annual returns paid on the investment are reinvested, calculate the value of the fund and the net return after three years. Describe the difference between load fees and annual fees.

(25 marks for calculations, 5 marks for discussion)