Mutual Fund return

CFA Level I
#1

You invest $1000 in a 5 front- end load fund charging 1.25% annnual fee. The fund makes 10% retyrn annually. What’s your annual componded return after 3 years?

#2

1000*.95 = 950 950(1.10-.0125)^3 = 1221.18

#3

return please.

#4

~6.78%? 1000*(1-5%)*(1+10%)^3*(1-1.25%)^3, as FV, PV=1000, N=3, PMT=0, I/Y=6.7835

#5

The fund also charges a back-end load of 2%.

#6

ok, than for the 2 back load, ~6.07% [1000*(1-5%)*(1+10%)^3*(1-1.25%)^3]*(1-2%)=1,193.27, as FV, PV=-1000, N=3, PMT=0, I/Y=6.0669

#7

The fund just turned into half closed-end fund and half ETF, calculate the return. . . . . . . . . . . . . . . . . . Just kidding. Correct answers.

#8

:)))))))