Problem 4-18 (Algo) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%, Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds' portfolios (before any fees) is 8% pen year. Required: 6. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded Up Fund Economy Fund Investment Values
Problem 4-18 (Algo) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%, Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds' portfolios (before any fees) is 8% pen year. Required: 6. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Loaded Up Fund Economy Fund Investment Values
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 4-18 (Algo)
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.80%. Economy Fund charges a front-end load of 2%,
but has no 12b-1 fee and has an expense ratio of 0.20%. Assume the rate of return on both funds portfolios (before any fees) is 8% per
year.
Required:
a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Mutual Fund
Loaded Up Fund
Economy Fund
Investment
Values
b. How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Mutual Fund
Investment
Values
Transcribed Image Text:c. How much will an investment of $100 in each fund grow to after 13 years? (Do not round intermediate calculations. Round your
answers to 2 decimal places.)
Mutual Fund
Loaded Up Fund
Economy Fund
Investment
Values
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