Question
Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2% and a
Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2% and a back-end load of 1%, but has no 12b-1 fee and an expense ratio of 0.20%. Assume the rate of return on both funds portfolios (before any fees) is 10% per year. How much will an investment of $100 in each fund grow to after 2 years?
$108.45 in Loaded-Up Fund; $106.53 in Economy Fund | ||
$119.25 in Loaded-Up Fund; $116.97 in Economy Fund | ||
$117.61 in Loaded-Up Fund; $116.97 in Economy Fund | ||
$119.25 in Loaded-Up Fund; $120.56 in Economy Fund |
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