Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.5%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 8% per year.
How much will an investment of $1,000 in each fund grow to after:
Loaded Up Fund? Economy Fund?
a. 1 year
b. 3 year
c. 10 year