What is the back-end load fee amount that Martin will pay upon withdrawing from his mutual fund?

The back-end load fee is a charge that investors may incur when they sell or withdraw from their mutual fund investments, typically applied as a percentage of the investment value. This fee structure is important to understand, as it can influence investment decisions based on the timing of withdrawal.

If Martin is facing a back-end load fee of 4,900 upon withdrawal, it suggests that he is still within the period during which such fees are applicable. Many mutual funds impose these fees to discourage short-term trading and to encourage longer-term investment. The specifics of the fee can vary depending on the mutual fund's policies, but they typically decrease over time, usually reaching zero after a certain number of years.

In this scenario, the amount indicated as 4,900 represents the calculation based on Martin's specific investment amount and the applicable percentage of the back-end load fee. This might be determined either through a percentage of his total investments or a predetermined fee structure defined by the mutual fund.

In contrast to other options, which may indicate lower fees or suggest that no fee applies, understanding that a back-end load fee may still be in effect emphasizes the relevance of the investment duration in relation to fee assessments. The correct answer reflects the financial implications of Martin's withdrawal based on