1. Can you find the interest rate if you know the annuity payments and a future value? under what circumstances might you want to solve this kind problem? which equation would you use?
2. Why do you think the mutual fund industry has experienced a decline in front-end sales loads since the introduction of 12b-1 fees?
Do you believe that most sales of equity and bond funds will be in the direct marketing channel without loads or 12b-l fees, or in the intermediary channel with loads and/or 12b-l fees?