Mathematics
Mathematics, 14.09.2019 06:30, WhitneyNH4261

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
$28 comma 728
now, or the buyer will make a series of payments starting now and continuing at annual intervals shown in the followingtable,

.
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
alternativelong dash
either
the lump sum or the mixed
streamlong dash
that
provides the higher future value at the end of 5 years. which alternative will she choose?
beggining of the year: cash flow:
0 $6,000
1 $10,000
2 $2,000
3 $10,000
4 $8,000

answer
Answers: 3

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