The present worth of an increasing geometric gradient is $23,632. The interest rate is 6% per...

  

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The present worth of an increasing geometric gradient is $23,632. The interest rate is 6% per year and the rate of change is 4% per year. The cash flow in year 1 is $3,000. a) List the parameters. (2 points) b) Draw the cash flow diagram to be used in solving c). (3 points) c) Determine the year "n" in which the gradient ends. (5 points) (Note: Write the formula and/or notation you are using before putting the numbers in. Show your work) The present worth of an increasing geometric gradient is $23,632. The interest rate is 6% per year and the rate of change is 4% per year. The cash flow in year 1 is $3,000. a) List the parameters. (2 points) b) Draw the cash flow diagram to be used in solving c). (3 points) c) Determine the year "n" in which the gradient ends. (5 points) (Note: Write the formula and/or notation you are using before putting the numbers in. Show your work)

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a The parameters of the problem are Present worth PW of the increasing geometric gra... View the full answer