4- Assume an 8% interest rate and find S, T, and X. 52 1800 A 800 1200 600 400 600 200 0-1-2–3- 0-1- (a) S = value at t= 0 (b) T = uniform value for 5 periods 600 450 300 150 (c) X = value at t= 0

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Arithmetic Gradients
4- Assume an 8% interest rate and find S, T, and X.
52
1800
A
800
1200
600
400
600
200
0-1-2–3-
0-1-
(a) S = value at t = 0
(b) T = uniform value for 5 periods
600
450
300
150
(c) X = value at t = 0
Transcribed Image Text:Arithmetic Gradients 4- Assume an 8% interest rate and find S, T, and X. 52 1800 A 800 1200 600 400 600 200 0-1-2–3- 0-1- (a) S = value at t = 0 (b) T = uniform value for 5 periods 600 450 300 150 (c) X = value at t = 0
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Step 1

An arithmetic gradient series is an income series that either increments or diminishes by a consistent sum every period. How much change is known as the gradient. Equations recently produced for A-series have year-end measures of equivalent worth.

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