You are an investor looking to invest 20,000 in a diversified mutual fund. You want to assess the potential net returns for 2 funds with different cost structures

	A Fund	B Fund
Front end load	2 %	0%
Back end load	4% for 4 years Decrease 0.5% each year to 0%	1.5% for 5 years 0 % after 5 years
Expense ratio	0.5 %	2.3%

How to get to these answers

Frais de Vente - Back end load first year of 874.16 and 329.10

Capital net of 20797.84 and 21 610.90

Rendement brut - Gross yield of second year 25,44% and all the subsequent years

Question 9) a) FONDS 8 10 210.58% RENDEMENT BRUT 12.00% 25.44% 40.49% 57.35% 76.23% 97.38% 121.07% 147.60% 177.31% RENDEMENTS NETS DES FRAIS DE GESTION 11.50% 9.70% 24.32% 20.34% 38.62% 32.01% 54.56% 44.82% 72.34% 58.87% 92.15% 74.28% 114.25% 91.18% 138.89% 109.73% 166.36% 130.07% 196.99% 152.39% Frais d'acquisition 400.00 $ - $ 400.00 $ - $ 400.00 $ - $ 400.00 $ . $ 400.00 $ . 400.00 $ . 400.00 $ . 400.00 $ . 400.00 $ . $ 400.00 $ - S . 1049.83 $ Frais de vente 874.16 $ 329.10 $ 974.69 $ 361.02 $ 1086.78 $ 396.04 $ 1 211.76 $ 434.46 $ 1 182.22 $ 476.60 $ 1 129.86 $ $ 936.45 $ $ 783.11 $ - $ 582.11 $ - $ Capital net 20 979.84 $ 23 392.52 $ 26 082.66 $ 29 082.17 $ 32 595.51 $ 36 532.30 $ 40 943.48 $ 45 886.09 $ 51 424.03 $ 57 628.85 $ 21 610.90 $ 23707.16 $ 26 006.75 $ 28 529.41 $ 31 296.76 $ 34 855.38 $ 38 236.35 $ 41 945.27 $ 46 013.96 $ 50 477.32 $ RENDEMENT NET 4.90% 8.05% 16.96% 18.54% 30.41% 30.03% 45.41% 42.65% 62.98% 56.48% 82.66% 74.28% 104.72% 91.18% 129.43% 109.73% 157.12% 130.07% 188.14% 152.39% Question 9) a) FONDS 8 10 210.58% RENDEMENT BRUT 12.00% 25.44% 40.49% 57.35% 76.23% 97.38% 121.07% 147.60% 177.31% RENDEMENTS NETS DES FRAIS DE GESTION 11.50% 9.70% 24.32% 20.34% 38.62% 32.01% 54.56% 44.82% 72.34% 58.87% 92.15% 74.28% 114.25% 91.18% 138.89% 109.73% 166.36% 130.07% 196.99% 152.39% Frais d'acquisition 400.00 $ - $ 400.00 $ - $ 400.00 $ - $ 400.00 $ . $ 400.00 $ . 400.00 $ . 400.00 $ . 400.00 $ . 400.00 $ . $ 400.00 $ - S . 1049.83 $ Frais de vente 874.16 $ 329.10 $ 974.69 $ 361.02 $ 1086.78 $ 396.04 $ 1 211.76 $ 434.46 $ 1 182.22 $ 476.60 $ 1 129.86 $ $ 936.45 $ $ 783.11 $ - $ 582.11 $ - $ Capital net 20 979.84 $ 23 392.52 $ 26 082.66 $ 29 082.17 $ 32 595.51 $ 36 532.30 $ 40 943.48 $ 45 886.09 $ 51 424.03 $ 57 628.85 $ 21 610.90 $ 23707.16 $ 26 006.75 $ 28 529.41 $ 31 296.76 $ 34 855.38 $ 38 236.35 $ 41 945.27 $ 46 013.96 $ 50 477.32 $ RENDEMENT NET 4.90% 8.05% 16.96% 18.54% 30.41% 30.03% 45.41% 42.65% 62.98% 56.48% 82.66% 74.28% 104.72% 91.18% 129.43% 109.73% 157.12% 130.07% 188.14% 152.39%