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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 $24,807 now, or the buyer will 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 5% 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? able e icon here in order to copy the contents of the data table below adsheet.)
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