Question 12 • Mathematics for Data and Financial Literacy
Jonathan invests $250,000 in a mutual fund. The fund charges a 0.5% annual fee for the management of the portfolio. How much did Jonathan pay in fees for the investment?
Answer
A
500 dollars
B
1 dollars comma 000
C
250 dollars comma 000
D
1 dollars comma 250
Explanation
Convert the annual fee rate to a decimal: 0.5% = 0.005. Then calculate $250,000 × 0.005 = $1,250, so Jonathan paid 1,250 dollars in fees.
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