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Value of a single amount vs a mixed stream. Gina Vitale has just contracted to...

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Finance

Value of a single amount vs a mixed stream. 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 $21,936 now, or the buyer will make
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 7% annual interest. Given her
desire to buy a house five years after selling the lot, she decides to choose the payment alternative-
-either 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, FVn, of the lump sum deposit is $___. (nearest cent) image
Gina Vitale has just contracted to sell a small parcel of land that she inn following table, . Because Gina doesn't really need the money today, she plans to let payment alternative either the lump sum or the mixed stream that provides the higher fu st cent.) Data table in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Mixed Stream Beginning of year Cash Flow 0 $2,000 1 $7,000 2 $7,000 $3,000 $7,000 3 Print Done

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