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The Investments Fund sells Class A shares with a front-end load of 5.5% and Class B shares with 12b-1 fees of 0.5% annua

Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
The Investments Fund sells Class A shares with a front-end loadof 5.5% and Class B shares with 12b-1 fees of 0.5% annually as wellas back-end load fees that start at 5% and fall by 1% for each fullyear the investor holds the portfolio (until the fifth year).Assume that you have $1,000 to invest and the portfolio rate ofreturn net of operating expenses is 15% annually.
1. If you invest in each fund and sell after 4 years, how muchwill you receive from each sale?
2.If you invest in each fund and sell after 14 years, how muchwill you receive from each sale?