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Read the fee base and date
The original account starts at 100 and earns 10% before a single end-period fee. The fictional fee is 1% of the pre-fee ending wealth, not 1% of initial capital. No other costs or owner transfers are included.
Calculate the actual fee
Pre-fee wealth is 110. The charge is 0.01×110 = 1.1, leaving 108.9. Net gain relative to the starting 100 is 8.9, so net return is 8.9%.
| Stage | Amount |
|---|---|
| Initial wealth | 100 |
| Pre-fee endpoint | 110 |
| Fee on endpoint | 1.1 |
| Net endpoint | 108.9 |
Inspect the simple subtraction
Subtracting 1 percentage point from the 10% gross return would give 9%. That would correspond to a charge of 1 on this initial base. It does not match the supplied ending-wealth fee term.
Do not generalize the fictional terms
Actual fees can depend on dates, bases, tiers, performance hurdles and transaction costs. This case establishes the consequence of one stated fee, not the fee schedule of a provider or a universal gross-to-net conversion. Keep fee inputs traceable.