Question: Value of a single amount versus a mixed stream Personal finance problem Gina Vitale has just contracted to sell a small parcel of land that

 Value of a single amount versus a mixed stream Personal finance

Value of a single amount versus a mixed stream Personal finance problem Gina Vitale has just contracted to sell a small parcel of land that she inherited a few days ago. The buyer is willing to pay $24,803 at the closing of the transaction or will pay the amounts shown in the following table, , at the beginning of each of the next five years. Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 6% annual interest. Given her desire to buy a house at the end of five years after closing on the sale of the lot, she decides to choose the payment alternative- $24,803 single amount or the mixed stream of payments in the table that provides the higher future value at the end of 5 years. Which alternative will she choose? The future value, FVn, of the lump sum deposit is S(Round to the nearest cent.) The future value of the mixed stream of payments is $. (Round to the nearest cent.) Which alternative will Gina choose? (Select the best answer below.) O O Lump sum deposit Mixed stream of payments Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Mixed Stream Beginning of year Cash Flow $10,000 $5,000 $4,000 $9,000 $2,000

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