Class A shares: aussme 10000 investment and time horizon of 2 years Front end load none Back end load 2% during the first yr Annual fees 2% The total redemption value = 10,000(1.09)^2(1-0.02)^2= 11410.51 1. Where does the 2% back end load factor in this calculation?. I think (1-0.02)^2 reflects the 2% annual fee. 2.If we were to break down the returns per year, how would we do it like for year 1: 10,000(1.09)(1-0.02) year 2: ? so that year 1+year 2= 11410.51 Thanks
Back end is not applicable in this case as it’s charged during 1st year ONLY. It’s not charged after 2nd year. 1st year 10000*1.09*.98*.98 2nd year = 10000*(1.09^2)*(.98^2)
Year 1: $10,000 * 1.09 * (1 - 0.02) = 10,682 Year 2: $10682 * 1.09 * (1 - 0.02) = 11,410.51