5. Fund A charges a 12b-1 fee of 1.5% and maintains an operating expense of 0.5%. Fund B charges a front-end load of 3% but has no 12b-1 fees and an operating expense of 0.25%. Assume the rate of return on both funds portfolios (before any fees) is 8%. You will invest $10,000 in one of these two funds. Which fund should you choose if you plan to sell the fund at the end of:

(a) 1 year? Show your work.

(b) 5 years? Show your work.