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a. The present worth of an increasing geometric gradient is $464,622. The interest rate is 7% per year, and the rate of change (the growth
a. The present worth of an increasing geometric gradient is $464,622. The interest rate is 7% per year, and the rate of change (the growth rate) is 6% per year. If the cash flow amount in year 1 (the starting value A) is $17,000. Calculate the year in which the gradient ends. b. If the series above were to be replaced with an Arithmetic gradient series of gradient G that results in the same present worth of $464,622 with interest rate of 7% over the same time period, what will be the value of G? Iif you do not trust your n in a above, use n=40 ) a. The present worth of an increasing geometric gradient is $464,622. The interest rate is 7% per year, and the rate of change (the growth rate) is 6% per year. If the cash flow amount in year 1 (the starting value A) is $17,000. Calculate the year in which the gradient ends. b. If the series above were to be replaced with an Arithmetic gradient series of gradient G that results in the same present worth of $464,622 with interest rate of 7% over the same time period, what will be the value of G? Iif you do not trust your n in a above, use n=40 )
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