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You have $12,000 to invest and you are considering investing in Redux Funds. The fund charges a front-end load of 2.5% percent and an annual
You have $12,000 to invest and you are considering investing in Redux Funds. The fund charges a front-end load of 2.5% percent and an annual expense fee of 1% percent of the ending asset value over the year. You believe the fund's gross rate of return will be 10 percent per year. If you make the investment, after one year what should your investment be worth; and what will its net rate of return be?
a. $12,747.15 and 6.23%
b. $12,747.15 and 8.95%
c. $12,741.30 and 6.18%
d. $12,162.15 and 1.35%
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