You Are Considering Investing $50,000 in Two Mutual Funds

You are considering investing $50,000 in two mutual funds. The first fund is a load fund with a fee of 6 percent, and you expect the fund to earn 11 percent over the next year. Alternatively, you could invest in a no-load fund that is expected to earn 8 percent and has a 0.5 percent redemption fee. What fund has a higher return and how much more value will it have after the first year?

A) load fund by $1,360
B) load fund by $580
C) no load fund by $580
D) no load fund by $1,560
E) no load fund by $1,820