On January 2, 2017, you invest $50,000 in the Lizbiz Mutual Fund, a load fund that charges a fee of 5 percent. The fund's returns were 14.6 percent in 2017, -6.4 percent in 2018, and 15.2 percent in 2019. On December 31, 2019, you redeem all your shares. The dollar value is

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of the load fee: 
Load fee = $50,000 * 5% = $2,500

Then, we can calculate the value of the investment each year: 
Value in 2017 = ($50,000 - $2,500) * (1 + 14.6%) = $58,695.74 
Value in 2018 = ($58,695.74 - $2,500) * (1 + 6.4%) = $62,523.12 
Value in 2019 = ($62,523.12 - $2,500) * (1 + 15.2%) = $78,146.33

Finally, we can calculate the redemption value: 
Redemption value = $78,146.33

Therefore, the answer is C.

On January 2, 2017, You Invest $50,000 in the Lizbiz