You bought $5,000 worth of mutual fundswith a redemption fee of 5 percent. If yousell within the first year you will be charged5%. The fee decreases 1 percent each yearafterward. If you sell during the third year,how much will be the redemption fee rate?DO NOT INCLUDE PERCENTAGE SIGN.Type your responseSubmit

Introduction: Mutual Fund Redemption fees are the fee charged by the mutual fund company from the…

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

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?