Use the following information for the next two questions:

Ralph invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4.0 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.80 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 3 percent each year paid on the last day of the year.

What is the value of investment at end of year 1?

		$48,000
		$49,440
		$49,050
		$50,123

If the investor reinvests the annual returns paid on the investment, what is the value of investment at the end of year 2?.

		$48,000
		$49,440
		$49,050
		$50,123