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 problem Gina Vitale has just contracted to sell a small parcel of land that she inherited a few years ago. The buyer is willing to pay $20,122 now, or the buyer wil make a series of payments starting now and continuing at annual intervals shown in the following table, Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 9% annual interest Given her desire to buy a house five years after selling the lot, she decides choose the payment alternativether the lump sum or the mixed stream that provides the higher future value at the end of 5 years. Which alternative will she choose? The future value. FV, of the lump sur deposit in (Round to the nearest cont) - X Data Table (Click on the con located on the top right corner of the data table below in order to copy its contents into a spreadsheet) 20 Mixed Stream Beginning of year Cash Flow 0 $2.000 1 $10,000 $3.000 3 $9.000 4 $2.000 Enter your answer in the answer Print Done parts Check An 2 remaining
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