Which option correctly lists the redemption fee brackets for different redemption amounts?

Which option correctly lists the redemption fee brackets for different redemption amounts?

• A. 2% for $200 to $5,000; 4% for $5,000 to $10,000; 6% for $10,000 or more
• B. 1% for all redemptions under $1,000; 2% for $1,000 to $5,000; 3% for over $5,000
• C. 3% for all redemptions
• D. 5% for all redemptions

Answer: (A)

Redemption fees often vary by how much you take out, using a tiered structure where the percentage climbs as the redemption amount increases. The correct brackets show a stepped rate: 2% on redemptions from $200 up to $5,000, 4% on redemptions from $5,000 up to $10,000, and 6% on redemptions of $10,000 or more. This pattern matches the idea that bigger withdrawals incur higher fees to reflect the greater impact or cost of processing larger redemptions. The other options propose flat rates or different bracket schemes that don’t align with this tiered structure.

Redemption fees often vary by how much you take out, using a tiered structure where the percentage climbs as the redemption amount increases. The correct brackets show a stepped rate: 2% on redemptions from $200 up to $5,000, 4% on redemptions from $5,000 up to $10,000, and 6% on redemptions of $10,000 or more. This pattern matches the idea that bigger withdrawals incur higher fees to reflect the greater impact or cost of processing larger redemptions. The other options propose flat rates or different bracket schemes that don’t align with this tiered structure.