Calculate the annual rate of return for a mutual fund with the following fees and expected returns
$$\begin{array} { l c c c c }
\text { Investment } & E ( \text { Return } ) & \text { Laad } & 12 \mathrm {~b} - 1 \mathrm { Eee } & \text { Years Hele } \
\text { Mutual Fund } & 7 \% & 4 \% & 0.50 \% & 7 \text { years }
\end{array}$$

Question

Calculate the annual rate of return for a mutual fund with the following fees and expected returns
$$\begin{array} { l c c c c } 
\text { Investment } & E ( \text { Return } ) & \text { Laad } & 12 \mathrm {~b} - 1 \mathrm { Eee } & \text { Years Hele } \
\text { Mutual Fund } & 7 \% & 4 \% & 0.50 \% & 7 \text { years }
\end{array}$$

Quizplus · Accepted Answer

$1(1 - 0.04)(1 + 0.07)⁷(1 - 0.005)⁷ = $1.4884
Annual return = 1.4884¹/⁷ - 1 = 0.05845 = 5.85%

Calculate the Annual Rate of Return for a Mutual Fund