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Lecture+No8_Gradient+Series

Example 3.24 –

Example 3.24 – Geometric Gradient Series Given: A 1 = $54,600, g = 7%, N = 5 years, and i = 12% per year Find: P P Old 5 5 1 (1 0.07) (1 0.12) $54,600 0.12 0.07 $222,937 P $54,600(1 0.23)( P / A,12%,5) New $42,042(3.6048) $151,552 Contemporary Engineering Economics, 5th edition, © 2010

Contemporary Engineering Economics, 5th edition, © 2010

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