venture capital

Suppose that $100M VC fund has a management fee of 2 percent per year in all years, with these fees paid on committed capital in the first five years and on invested capital for years 6 through 10. Assume that the fund is fully invested by the beginning of year 6, and makes no distribution of its investment capital until year 10. What are the lifetime fees and investment capital for this? (Make assumptions for any information that you think is still missing from the problem.) Lifetime Fees: Investment Capital