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Lecture+No8_Gradient+Series

Example 3.23 Declining

Example 3.23 Declining Linear Gradient Series Given: A 1 = $1,200, G = - $200, N = 5 years, and i = 10% per year Find: F Strategy: Since we have no interest formula to compute the future worth of a linear gradient series directly, we first find the equivalent present worth of the gradient series and then convert this P to its equivalent F. Contemporary Engineering Economics, 5th edition, © 2010

Present Worth of Geometric Gradient Series Formula: Factor Notation: Contemporary Engineering Economics, 5th edition, © 2010

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