Problem 4-21The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well asback-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that youhave $1,000 to invest and the portfolo rate of return net of operating expenses is 15% annually.a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? (Round your answers to 2 decimalplaces.)AmountsClass AClass Ba-2. Are Class A or Class B shares the better choice for you?O Class AO Class Bb-1. If you invest in each fund and sell after 15 years, how much will you recelve from each sale? (Round your answers to 2 decimalplaces.)AmountsClass AClass Bb-2. Are Class A or Class B shares the better choice for you?O Class AO Class B

Name: Problem 4-21The Investments Fund sells Class A shares with a front-en
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Description: Problem 4-21The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well asback-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (u

a-1) Selling after four years: Net Value of investment fund(Class A) =…

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The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfollo rate of return net of operating expenses is 15% annually.

The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfollo rate of return net of operating expenses is 15% annually.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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