A mutual fund has a 1% operating expense ratio, and you just invested $22,000. How much of your investment will go toward paying the operating expenses of the mutual fund this year?

To determine how much of your investment will go toward paying the operating expenses of the mutual fund, you need to calculate the operating expenses based on the investment amount and the operating expense ratio. The operating expense ratio is expressed as a percentage and reflects the portion of the fund's assets that are used to cover its operational costs.

In this scenario, the mutual fund has a 1% operating expense ratio, and you have invested $22,000. By calculating 1% of $22,000:

1% of $22,000 is calculated as follows:

1% = 0.01
Operating Expenses = $22,000 × 0.01 = $220

This calculation shows that $220 of your investment will go towards covering the operating expenses for that year. Therefore, the correct response indicates that $220 is the amount deducted from your investment for these expenses. Understanding how the operating expense ratio works is important because it impacts your overall investment returns, highlighting how costs can affect long-term financial performance.