math

Your invest $3,000 annually in a mutual fund that earns 10 percent annually and you invest all distributors. How much will you have in the account at the end of 20 years?
You invest $3,000 annually in a mutual fund with a 5 percent load fee so that only $2,850 is actually invested in the fund. The fund earns 10 percent annually, and you invest all distributions. How much will you have in the account at the end of 20 years? Assume that all distributions are not subject to the load fee.
You invest $3,000 annually in a no load mutual fund that charges 12b-1 fees of 1 percent. The fund earns 10 percent annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?
You invest $3,000 annually in no-load mutual fund that has 5 percent exit fee. The fund earns 10 percent annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?
In each case you invest the same amount ($3,000) every year, the fund earns the same return each year (10 percent), and you make each investment for the same time period (20 years). At the end of the 20 years, you withdraw the funds. Why is the final amount in each mutual funds different?

  1. 👍 0
  2. 👎 0
  3. 👁 91
asked by Skyler

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Justice wants to invest in a mutual fund for her retireme. If she expects to make 17% annually and wants to retire in 35 years, how much money must she invest per month to have 5 million dollars when she retires?

    asked by Salvador on March 19, 2012
  2. Finance

    21. Ogden wants to save for a trip to Australia. She will need $12,000 at the end of four years. She can invest a certain amount at the beginning of each of the next four years in a bank account that will pay her 6.8 percent

    asked by G on July 16, 2010
  3. Business Finance

    21.Ogden wants to save for a trip to Australia. She will need $12,000 at the end of four years. She can invest a certain amount at the beginning of each of the next four years in a bank account that will pay her 6.8 percent

    asked by G on July 16, 2010
  4. Finance Math

    Rafael Sandino’s parents are in their retirement years. They just received $501,000 after taxes from the sale of their vacation home and decided to invest the money in a bond mutual fund. They chose a no-load mutual fund that

    asked by Heyhi on April 22, 2018
  5. Statistics

    You have received a year-end bonus of $5000. You decide to invest the money in the stock market and have narrowed your investment options down to two mutual funds. the following data represent the historical quarterly rates of

    asked by Maree on January 28, 2013
  6. Fiance

    If a father wants to have $100,000 to send a newborn child to college, how much must he invest annually for 18 years if he earns 9 percent on his funds?

    asked by Rudy on August 20, 2010
  7. Finance

    If a father wants to have $100,000 to send a newborn child to college, how much must he invest annually for 18 years if he earns 9 percent on his funds?

    asked by Kat on January 27, 2010
  8. Algebra

    gilbert plans to invest 9% and 11% annually. if he want to earn$1200 annually how much should he invest in each bond.

    asked by Sally on December 16, 2015
  9. Math

    Alice Wolf wants to know how much she will have to invest today in order to receive an annuity of $6,000 for four years if interest is earned at 10 percent annually. She will make all her withdrawals at the end of each year. How

    asked by Anonymous on November 28, 2011
  10. Math

    Art Newner wants to know how much he will have to invest today in order to receive an annuity of $8,000 for three years if interest is earned at 10 percent annually. He will make all his withdrawals at end of each year. How much

    asked by Anonymous on November 28, 2011

More Similar Questions