Net return after fees can change long-term outcomes. Suppose a fund returns 8.00% before fees and charges a 0.75% expense ratio; the investor's net annual return is therefore 7.25%. Over multi-decade horizons, small net-return differences compound into meaningful dollar amounts. This calculation asks you to apply the net return to a $5,000 initial investment held 20 years. Use annual compounding and round to the nearest cent.