I can calculate regular mutual funds, front-load and no-loads, but not back-end loads. How do we do this problem?
Question:
Mutual fund charges 3% front load.
1% total annual fees
2% back-end load which decreases 0.5% per year
How much are the fees paid on a $100 000 investment that does not grow, if cashed out after 3 years of no gain?
Answer:
Need to find the Annual Rate of Return? (0.03)(0.99)(?....
The answer is 682, but how do we solve this problem to get to this result?


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