Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%Economy Fund charges a front-end load of 2% but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both fundsportfolios (before any fees) is 9% per year

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Madyson Hood · Accepted Answer

Each fund grow after 13 years is as follows - Formula for Loaded fund value   =  investment  ×  (  1  +  return  −  12  b  1  fees  −  expense ratio      )          year      So  Loaded fund value after 13 years  =      $    100  ×  (  1  +  9  %  −  1  %  −  0.75  %      )          13          =      $    248.41

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%Economy Fund charges a front-end load of 2% but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both fundsportfolios (before any fees) is 9% per year

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