When a mutual fund company charges a fee of \(0.47 \%\) on its index funds, its
assets in the fund are $$\$ 41$$ billion. And when it charges a fee of \(0.18
\%\), its assets in the fund are $$\$ 300$$ billion. (Source: The Boston
Globe.)
(a) Let \(x\) denote the fee that the company charges as a percentage of the
index fund and \(A(x)\) its assets in the fund. Express \(A(x)\) as a linear
function of \(x\).
(b) In September 2004, Fidelity Mutual lowered its fees on various index funds
from an average of \(0.3 \%\) to \(0.10 \%\). Let \(R(x)\) denote the revenue of the
company from fees when its index-fund fee is \(x \%\). Compare the revenue of
the company before and after lowering the fees. [Hint: Revenue is \(x \%\) of
assets.
(c) Find the fee that maximizes the revenue of the company and determine the
maximum revenue.