Sam has just received a bonus of $6,000 from work which he plans to invest into an IRA. After a lot of research, Jimmy has narrowed his selection to two mutual funds. The first fund requires a 5% up-front commission followed by a 0.25% annual management fee. The second fund has no up-front fee; instead its management fees are 2.00% in year one, 0.42% in years two and three, and 1.35% each year thereafter. He intends to keep this money in the mutual fund for 10 years and is estimating a 5% annual return.

Formulate a spreadsheet to determine which mutual fund Sam should select.