You worked very hard during the summer, and now you are paid $5,000 as your compensation. Now you would like to invest all of them into a fund so that you can spend them after 5 years. You have 2 funds to choose from:

1. Fund A promises 8% annual interest payment without reinvestment

2. Fund B promises 7% annual interest payment with reinvestment of interest

Which one would you choose? Please state clearly your criteria and the formulas you use to reach that decision.