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The future value of the mixed stream of payments is $???. Value of a single amount versus a mixed stream Personal finance problem Gina Vitale
The future value of the mixed stream of payments is $???.
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 $24,598 now, or the buyer will make a series of payments starting now and continuing at annual intervals shown in the following table, 5 Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 8% annual interest. Given her desire to buy a house five years after selling the lot, she decides to choose the payment alternativeeither the lump sum or the mixed streamthat 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 $ 36,142.53. (Round to the nearest cent.) The future value of the mixed stream of payments is $. (Round to the nearest cent.) Data Table - X (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 0 $8,000 1 $4,000 2 $4,000 3 $6,000 4 $10,000
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