Personal Finance 1st Edition by Jack R. Kapoor

Exercise 26

Determining Management Fees. Mike Jackson invested a total of $22,000 in the New Colony Pacific Region mutual fund. The management fee for this particular fund is 0.80 percent of the total asset value. Calculate the management fee Mike must pay this year.

Step 1 of 2

Investor MJ invested in NC mutual fund. The amount of the investment is $22,000. Management fee will be charged at 0.80%.

Management fee will be charged by the company to cover the distribution costs, costs of marketing a mutual fund, and commission paid to the brokers.