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Annual $5,000 investments are to be made in either Fund A or Fund B. Fund A pays interest of 5% the 1 st year, 5.25%

Annual $5,000 investments are to be made in either Fund A or Fund B. Fund A pays interest of 5% the 1st year, 5.25% the 2nd year, 6% the 3rd year; Fund B pays interest at the same rates, but in the reverse order.

True or False: Fund A will have a greater portfolio value after 3 years than Fund B.

Answers:

True

False

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