An open-end fund charges a 6% load. If the fund earns 10% return on its assets...
An open-end fund charges a 6% load. If the fund earns 10% return on its assets and costs of 1% of the start of year assets value. If you invest $10,000 in the fund, how much will you have after 5 yeas?
Homework Answers
Answer)
| Amount provided | 10000 | |||
| Load = 6% | 600 | |||
| Amount actually invested | 9400 | |||
| Year | value invested | Fees | Value left | Return |
| 1 | 9400 | 94 | 9306 | 931 |
| 2 | 10331 | 103 | 10227 | 1023 |
| 11353 | 114 | 11240 | 1124 | |
| 3 | 12477 | 125 | 12353 | 1235 |
| 4 | 13713 | 137 | 13575 | 1358 |
| 5 | 15070 | 151 | 14919 | 1492 |
| value left after 5 years | 16562 |
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