You want to invest $10,000 in Mass Mutual Super Growth Fund (MMSG). The fund offers an average 10% annual return. The fund charges a 5% front-end load, a back-end load that starts at 2.5% for the first year and then decrease by 0.5% each full year the investor holds the mutual fund. You plan to invest for three full years and then cash out the account balance after.

1) If the annual operating expense ratio is 2.2%, how much money can you cash out after the three years? (7 points)

2) You mom is more conservative and she want you to invest in a bank C.D. paying 4% per year for three years. What maximum annual operating expense ratio would the MMSG fund charge to make you better off (cash out more money) than in C.D. after three years? (8 points)