The correct answer is A.

A front-end load is a charge that investors pay when they purchase shares in a mutual fund, and it is typically deducted from the initial investment. This fee is used to cover various costs associated with the management and operation of the fund, including sales commissions, administrative expenses, and other related costs. In the case of Michael Bauer, if he decides to buy shares in a front-end loaded mutual fund, he will be required to pay this fee at the time of purchase. This fee is a one-time charge and does not recur when the investor decides to sell his shares. The front-end load is usually expressed as a percentage of the total investment, and it can significantly impact the net return on the investment, especially in the short term. Therefore, investors should carefully consider this fee when choosing a mutual fund.

Choice B is incorrect. A back-end purchase fee, also known as a deferred sales charge or exit fee, is not paid at the time of purchase. Instead, it is charged when the investor sells his shares in the mutual fund.

Choice C is incorrect. A front-end fee is not charged when an investor decides to sell his shares. It's a type of commission that's paid upfront at the time of purchase.

Choice D is incorrect. While this statement correctly describes a back-end load (it's paid when shares are sold), it does not accurately represent what would happen if Michael Bauer invests in a mutual fund with a front-end load as stated in the question.