Difference between "A lump sum with interim cash" and "A lump sum with no interim cash"
Since English is not my mother tongue, please bear with me on this.
Given the below 2 paragraphs, what’s the difference between “A lump sum with interim cash” and “A lump sum with no interim cash”?
The Future Value of a Lump Sum with Interim Cash Reinvested at the Same Rate
You are the lucky winner of your state’s lottery of $5 million after taxes. You invest your winnings in a five-year CD at a local financial institution. The CD promises to pay 7%/year compounded annually. This institution also lets you reinvest the interest at that rate for the duration of the CD.
The Future Value of a Lump Sum with No Interim Cash
For an investment of $2,500,000, an institution promises to pay you a lump sum 6 years from now at an 8% annual interest rate.
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