(Solution) - The average equity mutual fund charges about 1 5 percent annually -(2025 Original AI-Free Solution)

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The average equity mutual fund charges about 1.5 percent annually as an operating expense ratio. Assuming that the average fund earns 11 percent on a gross basis over a 20 year period, determine how much $10,000 invested in a fund would grow to on a net basis after 20 years (after deducting the annual expense ratio).