Question

The Jones Stock Fund sells Class A shares that have a front-end load of 6.25 percent, and a 12b-1 fee of 0.18 percent, and other (expenses) fees of 0.71 percent. There are also Class B shares with a 5 percent CDSC at 5% in Year 0 and then declines by 1 percent a year, a 12b-1 fee of 0.90 percent, and other fees of 0.75 percent. You plan to invest $875 in each fund. If the portfolio return is 9 percent per year and you plan to sell after the third year, how much will your Class B fund be worth it when you sell it? If the portfolio return is 9 percent per year and you plan to sell after 15 years, how much will your Class A fund be worth it when you sell it?

          The Jones Stock Fund sells Class A shares that have a front-end load of 6.25 percent, and a 12b-1 fee of 0.18 percent, and other (expenses) fees of 0.71 percent. There are also Class B shares with a 5 percent CDSC at 5% in Year 0 and then declines by 1 percent a year, a 12b-1 fee of 0.90 percent, and other fees of 0.75 percent. You plan to invest $875 in each fund.

If the portfolio return is 9 percent per year and you plan to sell after the third year, how much will your Class B fund be worth it when you sell it? If the portfolio return is 9 percent per year and you plan to sell after 15 years, how much will your Class A fund be worth it when you sell it?

Added by Amparo S.

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