On January 2, 2017, you invest $50,000 in A Mutual Fund, a load fund that charges a fee of 7 percent. The fund's returns were 12.8 percent in 2017, 13.9 percent in 2018, and 7.9 percent in 2019. On December 31, 2019, you redeem all your shares in A. The dollar value is

Question

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First, we need to calculate the total fee charged by the load fund. The fee for the investment is:

$50,000 x 0.07 = $3,500

The net investment after the fee is:

$50,000 - $3,500 = $46,500

Next, we need to calculate the returns for each year.

In 2017, the return is:

$46,500 x 0.128 = $5,952

The value of the investment at the end of 2017 is:

$46,500 + $5,952 = $52,452

In 2018, the return is:

$52,452 x 0.139 = $7,281

The value of the investment at the end of 2018 is:

$52,452 + $7,281 = $59,733

In 2019, the return is:

$59,733 x 0.079 = $4,711

The value of the investment at the end of 2019 is:

$59,733 + $4,711 = $64,444

Finally, we need to subtract the initial investment to obtain the dollar value of the redemption:

$64,444 - $50,000 = $14,444

So the answer is A) $64,462.57.

On January 2, 2017, You Invest $50,000 in a Mutual