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Business, 23.04.2021 18:30 mikecool224

The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 15% annually. Required:
a. If you invest in each fund and sell after 4 years, how much will you receive from each sale?
b. If you invest in each fund and sell after 12 years, how much will you receive from each sale?
c. Are Class A or Class B shares the better choice for you?

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The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-...
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