Lin redeemed $10,000 worth of mutual fund shares, but only received $9,150 in cash. This is what kind of fee, and what percentage was she charged?

Question

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Lin was charged a back-end load of 8.5%, which is a fee charged when mutual fund shares are redeemed. The calculation is based on the difference between the redemption value ($9,150) and the original value ($10,000), which equals $850. The fee percentage is calculated as ($850 / $10,000) * 100% = 8.5%.

Lin Redeemed $10,000 Worth of Mutual Fund Shares, but Only