A hedge fund charges a management fee of 2% and an incentive fee of 20% for the performance over the money market interest rate. Compute your total after-fee returns from investing $100,000 in a fund that has made a 20% return above the money market interest rate.
Assume that the money market rate is 0%.
a. $20,000
b. $14,000
c. $16,000
d. $18,000
