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The Magic of Math.

Linda is 14 years old and planning to go to college in 4 years. Recently her grandmother gave her $5,000 for her college tuition fund. Linda is trying to decide how to invest the money to maximize its value when she goes to college. An investment advisor offers her three investments, each with an average annual return of 8%. Investment A pays 8% annually, Investment B decreases in value by 8% the first year but increases in value by 13.33% the next three years, and Investment C increases in value by 12% the first and third year and by 4% the second and fourth years. Which investment should Linda choose?


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