Answered: You bought $5,000 worth of mutual funds… | bartleby

FINANCIAL ACCOUNTING

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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You bought $5,000 worth of mutual funds
with a redemption fee of 5 percent. If you
sell within the first year you will be charged
5%. The fee decreases 1 percent each year
afterward. If you sell during the third year,
how much will be the redemption fee rate?
DO NOT INCLUDE PERCENTAGE SIGN.
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