STEP-BY-STEP SOLUTION
SOLUTION USING GEOMETRIC SERIES PRESENT WORTH FACTOR
The present worth of cost of maintenancefor the first 5 years is $480.42.
Tuesday, October 23, 2012
GEOMETRIC GRADIENT: Calculate the Present Worth.
STEP-BY-STEP SOLUTION
SOLUTION USING GEOMETRIC SERIES PRESENT WORTH FACTOR
The present worth of cost of maintenancefor the first 5 years is $480.42.
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A very common problem. You have a lump sum you will invest at a given ROR. And for a defined period of years you want to know what the starting value of a series of withdrawals will be that are inflated at the rate of inflation year over year to keep the purchasing power constant.
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