Problem 4.3 (c) Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense...
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Finance
Problem 4.3 (c)
Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.60%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and an expense ratio of 0.40%. Assume the rate of return on both funds portfolios (before any fees) is 6% per year.
If you invest $100 and let it grow for 10 years, how much more will you have in the Loaded-Up Fund compared to the Economy Fund? (Negative values should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
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