The Inv Fund sells Class A shares with a front-end load of 6%, and class B shares with 12b-1 fees of 0.5% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio. Assume the portfolio rate of return net of operating expenses is 10% annually. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice for you? What if you plan to sell after 15 years?

Starting from $1000, the ending value in 4 years is:

Class A: $1000(1-6%)*(1+10%)4=

Class B: $1000(1+10%-0.5%)4*(1-1%)=