MATH SOLVE

3 months ago

Q:
# Alyssa had an average of $12,000 invested in her no-load mutual fund this past year. The fund had a management fee of 1.5percent and an additional 12b-1 fee of 1.25 percent. How much did mutual fund fees cost Alyssa last year?

Accepted Solution

A:

Answer:$330.Step-by-step explanation:We have been given that Alyssa had an average of $12,000 invested in her no-load mutual fund this past year. We are also told that fund had a management fee of 1.5% and an additional 12b-1 fee of 1.25%.Since the base amount for both percentages is same, so to find the mutual fees last year, we need to find 2.75% of $12,000 as 1.5% and 1.25% add up-to 2.75%.[tex]\text{Mutual fund fees last year}=\$12,000\times \frac{2.75}{100}[/tex][tex]\text{Mutual fund fees last year}=\$12,000\times 0.0275[/tex][tex]\text{Mutual fund fees last year}=\$330[/tex]Therefore, the mutual fund fees cost Alyssa $330 last year.