Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 2, Problem 41P
To determine

Calculate the present worth of geometric gradient.

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Calculate the present worth of a geometric gradient series with a cash flow of $42,000 in year 1 and increases of 5% each year through year 5. The interest rate is rate is 10% per year.
For the cash flow diagram shown, determine the value of G that will make the present worth in year 0 equal to $2500 at an interest rate of 10% per year.
How many years will be required for a given sum of money to be 8 times the principal amount, if it is compounded annually, and deposited in a bank account that pays 7.50% per year?

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Engineering Economy

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