You are considering investing $100 for one year in a mutual fund with an expected return of 10% per year. It charges a 1% front-end fee and a 1% back-end load. The expense ratio is 0.5% per year and the 12-b1 fee is 0.7% per year.

1. (a) What would be the expected end value of your investment if you invest for 1 year?

2. (b) What would be the expected end value of your investment if you invest for 3 years? What would be your annual rate of return for the three-year investment period?