Personal Finance 1st Edition by Jack R. Kapoor

Exercise 28

Calculating Mutual Fund Fees. In the prospectus for the Brazos Small Cap Fund, the fee table indicates that the fund has a 12b-1 fee of 0.35 percent and an expense ratio of 1.65 percent that is collected once a year on December 1. If Joan and Don Norwood have shares valued at $31,000 on December 1: (Obj. 1)

a. What is the amount of the 12b-1 fee this year?

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b. What is the amount they will pay for expenses this year?

Step 1 of 3

Consider the following information:-

All variables are as per given information.