How to Calculate Fees for Investment Funds

Question:

If you invest $80,000 in the Tech Innovators Fund with an expense ratio of 2.25%, what is the dollar amount of fees that you would pay this year?

Answer:

The dollar amount of fees that you would pay this year for investing in the Tech Innovators Fund can be calculated by multiplying the investment amount by the expense ratio.

To calculate the fees for the Tech Innovators Fund with an expense ratio of 2.25%, you would multiply the investment amount by the expense ratio. In this case, if you invest $80,000 in the fund, the calculation would be as follows:

Fee = Investment × Expense Ratio

Fee = $80,000 × 0.0225

Fee = $1,800

Therefore, if you invest $80,000 in the Tech Innovators Fund with an expense ratio of 2.25%, the dollar amount of fees that you would pay this year would be $1,800.