Value of a single amount versus 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 $24,000 at the closing of the transaction or will pay the amounts shown in the following table at the beginning of each of the next 5 years. 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 at the end of 5 years after closing on the sale of the lot, she decides to choose the payment alternative--- $24,000 single amount or the mixed stream of payments in the following table--- that provides the higher future value at the end of 5 years. Which alternative will she choose?

Mixed stream

Beginning of year	Cash flow
1	$2,000
2	4,000
3	6,000
4	8,000
5	10,000

Suppose that somehow you know that the present value of the entire stream is $32,911.03 and that the discount rate is 4%. What is the amount of the missing cash flow in year 3?