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Problem 17-02

Suppose you are considering investing $1,000 in a load fund that charges a fee of 7%, and you expect your investment to earn 14% over the next year. Alternatively, you could invest in a no-load fund with similar risk that charges a 1% redemption fee. You estimate that this no-load fund will earn 12%. Given your expectations, which is the better investment and by how much? Do not round intermediate calculations. Round your answers to two decimal places.

Load fund growth: %

No-load fund growth: %

The -Select-loadno-loadItem 3 fund is better by %.