Question: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and f=6% per year thereafter. Find the

Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and f=6% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the end of year one is $4,000. Answer the following questions to determine the value of the gradient amount, G. The interest rate is 8% per year. a. What is P0 for the geometric gradient series? b. What is P0 of the uniform (arithmetic) gradient of cash flows? c. What is the value of G ? Click the icon to view the interest and annuity table for discrete compounding when i=8% per year. a. P0 for the geometric gradient series is $ (Round to the nearest dollar.)

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