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