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The following information pertains to the Big Returns Fund: Cost Class "A" Class "B" Cl...

The following information pertains to the Big Returns Fund:

Cost

Class "A"

Class "B"

Class "C"

Front-end load

5.57

0.00

0.00

Back-end load

0.00

5.34

0.89

Declining 1% per year

     First year only

Management fee

0.80

0.80

0.80

12b-1 fee

0.30

0.60

0.80

For each share class, calculate (1) how much you would pay in initial commissions, (2) how much you would pay in back-end commissions if you sold after two years, (3) how much in value is lost to annual expenses over a two-year holding period. Assume you purchased $1,500worth of shares in this fund, and that prior to reductions for management and 12b-1 fees the gross fund return was 9.00percent each year.

Click on the table icon to view the FVIF table (table below)

Compound Sum of $1 (FVIF)

1

2

3

7.10 %

1.0710

1.1470

1.2285

7.20 %

1.0720

1.1492

1.2319

7.30 %

1.0730

1.1513

1.2354

7.40 %

1.0740

1.1535

1.2388

7.50 %

1.0750

1.1556

1.2423

7.60 %

1.0760

1.1578

1.2458

7.70 %

1.0770

1.1599

1.2492

7.80 %

1.0780

1.1621

1.2527

7.85 %

1.0785

1.1632

1.2545

7.90 %

1.0790

1.1642

1.2562

7.95 %

1.0795

1.1653

1.2580

8.00 %

1.0800

1.1664

1.2597

8.10 %

1.0810

1.1686

1.2632

8.20 %

1.0820

1.1707

1.2667

8.30 %

1.0830

1.1729

1.2702

8.40 %

1.0840

1.1751

1.2738

8.50 %

1.0850

1.1772

1.2773

8.60 %

1.0860

1.1794

1.2808

8.70 %

1.0870

1.1816

1.2844

8.80 %

1.0880

1.1837

1.2879

8.85 %

1.0885

1.1848

1.2897

8.90 %

1.0890

1.1859

1.2915

8.95 %

1.0895

1.1870

1.2932

9.00 %

1.0900

1.1881

1.2950

9.10 %

1.0910

1.1903

1.2986

9.20 %

1.0920

1.1925

1.3022

9.30 %

1.0930

1.1946

1.3058

9.40 %

1.0940

1.1968

1.3093

9.50 %

1.0950

1.1990

1.3129

9.60 %

1.0960

1.2012

1.3165

9.70 %

1.0970

1.2034

1.3201

9.80 %

1.0980

1.2056

1.3238

9.85 %

1.0985

1.2067

1.3256

9.90 %

1.0990

1.2078

1.3274

9.95 %

1.0995

1.2089

1.3292

10.00 %

1.1000

1.2100

1.3310

11.00 %

1.1100

1.2321

1.3676

1. The initial commissions for Class "A" is $  . (Round to the nearest cent.)

The back-end commission for Class "A" is $    . (Round to the nearest cent.)

The total value lost to annual fees and expenses for Class "A" over the two-year holding period is $   . (Round to the nearest cent.)

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Answer #1

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