Assume you invest $10,000 in Charles Fund. It expects to return 5% annually.

i. Based on an operating expense of 1.25% on the average fund balance for each year, calculate the operating expenses for three years.

Beginning Balance	Annual Return	Ending Balance Before Expenses	Average Balance	OperatingExpense Percentage	Operating Expenses	Ending Balance after Expenses
$10,000	5%			1.25%
	5%			1.25%
	5%			1.25%

ii. Calculate your actual (geometric) return.