Suppose you consider investing $15,000 in a load fund from which a fee of 5% is deducted and you expect the fund to earn 12% over the next year.Alternatively,you could invest in a no load fund which is expected to earn 10% and which takes a 1/2 percent redemption fee.Which is better and by how much?

Question

Quizplus · Accepted Answer

$$\text { Na-Laad Fund: } \quad \$ 15,000 ( 1.10 ) ( 1.00 - .005 ) = \$ 16417.50$$ 
The difference is $16417.50 - $15960 = $457.50
No-Load fund is better.

Suppose You Consider Investing $15,000 in a Load Fund from Which