vest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $11,400 investment that does not grow if you cash out after 3 years of no gain?
vest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $11,400 investment that does not grow if you cash out after 3 years of no gain?
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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You invest in a mutual fund that charges a 5% front-end load, 1% total annual fees, and a 2% back-end load, which decreases 0.5% per year. How much will you pay in fees on a $11,400 investment that does not grow if you cash out after 3 years of no gain? Question 3Answer a. $570 b. $786 c. $115 d. $944
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