Question

Use a spreadsheet to calculate two mutual funds’ performance. Both funds deliver a 10% pre-tax, pre-fee annual return, but Fund A charges a 0.06% annual fee, while B 0.44%. You start with $100,000 in each of your mutual fund. The funds grow at a post-fee rate of return (ignore taxes). For example, A grows at 9.94% a year. Contrast the ending balances of the two funds after 30 years.

Answer 1