Final answer:
To calculate the deduction when the expense ratio is applied, multiply the account balance by the expense ratio percentage. Using an account balance of $10,000 and an expense ratio of 1%, $100 would be deducted from the account.
Step-by-step explanation:
To determine how much money will be deducted from your account when the expense ratio is applied, you need to know the expense ratio percentage. To calculate the deduction when the expense ratio is applied, multiply the account balance by the expense ratio percentage. Using an account balance of $10,000 and an expense ratio of 1%, $100 would be deducted from the account.
Let's assume the expense ratio is 1%. To calculate the deduction, multiply the account balance by the expense ratio:
Deduction = Account Balance × Expense Ratio
Using the given account balance of $10,000 and an expense ratio of 1%, the deduction would be:
Deduction = $10,000 × 0.01 = $100
Therefore, $100 would be deducted from your account.