You have decided to invest $$10,400$ in the Pinnacle fund. Over the long haul, the Pinnacle fund is expected to earn a return of $8\mathrm{.}65\%$ on the portfolio $($gross of fees$).$ However, Pinnacle offers several classes of funds. Therefore, you can choose to pay a front load of $7\mathrm{.}0\%$ and escape $12-$b$1$ fees, or you can avoid the load fee by paying $12-$b $1$ fees of $0\mathrm{.}75\%.$

Required:

a$.$ If your investment horizon is $12$ years, what is your expected terminal wealth under each strategy?

b$.$ Which option should you choose?

Complete this question by entering your answers in the tabs below.

Required A

Required B

If your investment horizon is $12$ years, what is your expected terminal wealth under each strategy?

Note: Round your answer to $2$ decimal places.

No$-$load fund

Front$-$load fund