Multiple Choice
The figure given below shows the demand curves [D1 and D2] and the supply curve [S1] of capital.Figure 17.1
![The figure given below shows the demand curves [D<sub>1</sub> and D<sub>2</sub>] and the supply curve [S<sub>1</sub>] of capital.Figure 17.1 -If you invest $2,500 in a mutual fund with a 5 percent front-end load, _____. A) $50 will be used to pay for the sales charge and $2,000 will be invested in the fund B) there will be no sales charge and the entire $2,500 will be invested in the fund C) the fees for the fund manager will be paid only after a period of 20 years D) $125 will be paid to the fund manager and $2,375 will be invested in the fund E) a fixed amount of $250 will be paid to the fund manager every year](https://d2lvgg3v3hfg70.cloudfront.net/TB1748/11ea8882_6256_4c4d_8903_87d4e8eb62a5_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00_TB1748_00.jpg)
-If you invest $2,500 in a mutual fund with a 5 percent front-end load, _____.
A) $50 will be used to pay for the sales charge and $2,000 will be invested in the fund
B) there will be no sales charge and the entire $2,500 will be invested in the fund
C) the fees for the fund manager will be paid only after a period of 20 years
D) $125 will be paid to the fund manager and $2,375 will be invested in the fund
E) a fixed amount of $250 will be paid to the fund manager every year
Correct Answer:

Verified
Correct Answer:
Verified
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