Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EDY one is $5188 and geometric gradient36% per year thereafter. Find the equivalent uniform gradient amount G over the same period of the initial value of the cash-flows at EOY one is $2935, the interest rate is 8% per year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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Consider an EOY geometric gradient, which
lasts for eight years, whose initial value at EDY
one is $5188 and geometric gradient36% per
year thereafter. Find the equivalent uniform
gradient amount G over the same period of
the initial value of the cash-flows at EOY one
is $2935, the interest rate is 8% per year.
Transcribed Image Text:Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EDY one is $5188 and geometric gradient36% per year thereafter. Find the equivalent uniform gradient amount G over the same period of the initial value of the cash-flows at EOY one is $2935, the interest rate is 8% per year.
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