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% redemption fee. Which is better and by how much?
A) Load fund by $318.45
B) No load fund by $457.50
C) Funds are equal
D) Load fund by $415.10
E) No load fund by $211.51
Correct Answer:
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