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You have $10,000 to invest and you are considering investing in a fund. The fund charges a front-end load of 5.75 percent and an annual
You have $10,000 to invest and you are considering investing in a fund. The fund charges a front-end load of 5.75 percent and an annual expense fee of 1.25 percent of the average asset value over the year. You believe the fund's gross rate of return will be 11 percent per year.
a) What's your investment amount?
b) How much fee you need to pay at the end of one year?
c) After fees, what should your investment be worth.
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