Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following four investments. a) You invest $3,000 annually in a mutual fund that earns 10% annually, and you reinvest all the distributions. How

Consider the following four investments. a) You invest $3,000 annually in a mutual fund that earns 10% annually, and you reinvest all the distributions. How much will you have in the account at the end of 20 years? b) You invest $3,000 annually in a mutual fund with a 5% load fee so that only $2,850 is actually invested in the fund. The fund ears 10% annually, and you reinvest all the distributions. How much will you have in the account at the end of 20 years? (Assume that all distributions are not subject to the load fee.) c) You invest $3,000 annually in no-load mutual fund that charges b-1 fee of 1%. The fund earns 10% annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years? d) You invest $3,000 annually in no-load mutual fund that has a 5% exit fee. The fund earns 10% annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Market Finance

Authors: Patrice Poncet, Roland Portait, Igor Toder

1st Edition

3030845982, 978-3030845988

More Books

Students also viewed these Finance questions