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The Investments 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
The Investments 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 (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 10% annually. a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Class A Amounts 1,376.25 $ 1,021.25 Class B a-2. Are Class A or Class B shares the better choice for you? O Class A Class B b-1. If you invest in each fund and sell after 15 years, how much will you receive from each sale? (Round your answers to 2 decimal places.) * Answer is complete but not entirely correct. Amounts Class A Class B $ 3,926.61 $ 2,958.88
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