1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mel-nik [20]
3 years ago
10

Item12 10 points eBookPrintReferences Check my work Check My Work button is now enabledItem 12Item 12 10 points Problem 4-19 Loa

ded-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 7% per year. How much will an investment of $1,000 in each fund grow to after:
a. 1 year
b. 3 years
c. 10 years
Business
1 answer:
USPshnik [31]3 years ago
4 0

Answer:

<u><em>Loaded-up fund:</em></u>

1-year:    1,055

3-year:    1.174,24

10-year: 1,708.14

<em><u>Economy Fund:</u></em>

1-year:    1,040.81

3-year:    1,186.06

10-year: 1,873.63

Explanation:

<u>Loaded-up fund:</u>

0.75% + 0.75% = 1.5%

7% return - 1.5% = 5.5%

after a year:

1,000 x 1.055 = 1,055

after three years:

1,000 x 1.055^3 = 1.174,24

after ten years:

1,000 x 1.055^10 =1,708.14

<u>Economic Fund:</u>

discounting the front-end load

1,000 x (1 - 0.025) = 975

then:

7%  -  0.25% = 6.75%

after a year:

975 x 1.0675 = 1.040,81

after three years:

975 x 1.0675^3 = 1.186,06

after ten years:

975 x 1.0675^10 =1,873.63

You might be interested in
Which of the following is the best example of a positive question?a. How are price and quantity demanded related?b. How should t
fredd [130]

Answer:

a. How are price and quantity demanded related?

b. How should the government deal with the next recession?

Explanation:

A positive question is the kind of question the answer of which is simply yes or no. They ask about how one thing is rather than how something should be.

In above question, there are two questions which fall in the category of positive questions because of the way they are formed and what they are asking.

6 0
3 years ago
Why is it important to distinguish between unilateral and mutual mistakes?
SVEN [57.7K]

Answer:

The correct answer is because it determines which contracts could be voidable

Explanation:

A unilateral mistake is when just one party to a contract is mistaken as to the terms contained in a contract.

Commonly, the unilateral mistake does not make a contract void; The mutual mistake makes it.

6 0
3 years ago
Which of the following is indicative of supervisory leadership?A. Conflict is containedB. Individual performance is developedC.
gulaghasi [49]

Answer:

B. Individual performance is developed.

Explanation:

Supervisors and leaders are closely related as both influence an audience, to grow and motivates them to attain goals.

Further, when supervisory leadership is done, it clearly helps individuals grow, and act motivated in all the aspects of the performance.

This, is clearly depicted from the results of outcomes as the performance is above the expected standards and then, the individual level of performing the job also get boosted.

Therefore, correct option is

Statement B

5 0
4 years ago
The chefs at Lorifusion, a continental restaurant, are given the freedom to try out new ways of presenting their dishes. This he
REY [17]

Answer:

The answer is: A) A creative work environment

Explanation:

Creative working environments usually enable employees to spend time creating different products, being unpredictable, testing different ideas, making mistakes, and innovating.

It's not easy for management to create such working environments, specially when innovation is not linear, is unpredictable and may be inefficient sometimes. But at the long run, innovative companies will tend to dominate their markets.

7 0
3 years ago
Suppose economic conditions call for a tax increase but Congress does not implement this measure because an election is approach
Daniel [21]

Answer:

Implementation lag

Explanation:

there are four types of lags associated with fiscal policy

Administrative lag is the time it takes to enact the needed policies. Operational lag is the time it takes for the policy to be enacted to the time the effects are felt in the economy

Recognition lag is the amount of time it takes for authorities to recognise a problem in the economy that needs fiscal policy intervention.

Implementation lag is the amount of time it takes for fiscal policy decisions to be implemented.

3 0
4 years ago
Other questions:
  • A change in depreciation method is accounted for:Select one:a. Retrospectively.b. Prospectively, like changes in accounting esti
    8·1 answer
  • A company wants to identify which of two production methods has the smaller completion time. One sample of workers is randomly s
    5·1 answer
  • In addition to joint ownership ventures in china, intel has made substantial outlays in its own manufacturing and research facil
    9·1 answer
  • Heap Corporation is considering an investment in a project that will have a two year life. The project will provide a 10% intern
    7·1 answer
  • On July 1, 2021, Ayayai Inc. entered into a contract to deliver one of its specialty machines to Kickapoo Landscaping Co. The co
    7·1 answer
  • uppose you observe the following exchange rates: €1 = $1.50; £1 = $2.00. Calculate the euro-pound exchange rate. A. €1.25 = £1.0
    6·1 answer
  • How is having a security system for your home a risk
    12·1 answer
  • The Saturn Company records all collections from customers (including 5% sales tax) in the Sales Revenue Account. The account bal
    11·1 answer
  • Calculate the simple interest and maturity vale. (do not round intermediate calculations. Round your answers to the nearest cent
    12·1 answer
  • A brand new business-to-business purchase that is complex or risky and that requires extensive decision making is called:_______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!