A mutual fund reported year-end (as of4:00pm that day) total assets of $508 millionand an expense ratio of 1.32% and a 12b-1 feeof 1%. The fund charges a 4% back-end fee.The fund on that day has 500,000outstanding shares and liabilities of $54.1million. The investor is planning on investingin this mutual fund for 20 years. calculate theaverage annual fee that this investor will pay.

Information Provided: Total assets = $508 million Expense ratio = 1.32% Fund charges (back end fee)…

Answered: million. The investor is planning on…

million. The investor is planning on investing in this mutual fund for 20 years. calculate the average annual fee that this investor will pay.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

A mutual fund reported year-end (as of
4:00pm that day) total assets of $508 million
and an expense ratio of 1.32% and a 12b-1 fee
of 1%. The fund charges a 4% back-end fee.
The fund on that day has 500,000
outstanding shares and liabilities of $54.1
million. The investor is planning on investing
in this mutual fund for 20 years. calculate the
average annual fee that this investor will pay.

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