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Chapter 5 Spring 2010

# Chapter 5 Spring 2010 - CHAPTER 5 Arithmetic Gradients G...

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CHAPTER 5 Arithmetic Gradients, G: The Constant Increment to a series of Periodic Payments F/G, G/F “F given G, G given F” P/G, G/P “P given G, G given P” A/G, G/A “A given G, G given A”

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HW Due on 02/04/10 Chapter 5 B.2 D.6 E.2 F.1 * part b) will not be graded but you might want to see if you can work it. The answer is correct. F.4 G.2
CHAPTER OUTLINE Finding the Present Worth, Future Worth, or Equivalent Series from an Arithmetic Gradient Shifting Cash flow diagrams Manipulating interest rates Complex problems

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Equations – page 126 ( 29 - - + = n i i i G F n 1 1 n 2 i G P = ( 29 ( 29 ( 29 + - + - + = n n n i n i i i i G P 1 1 1 1 ( 29 - + - = 1 1 1 n i n i G A
Cash Flow Diagrams G G 2G 2G 3G 3G 4G 4G 5G 5G 0 0 1 1 2 2 3 3 4 4 5 5 6 6 G = 0 at time 1 Equation Time 0 is 2 PERIODS prior to the first G

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Cash Flow Diagrams P F A G G 2G 2G 3G 3G 4G 4G 5G 5G P is found 2 periods prior to the first G F is found at the same time as the last G The resulting A from a G starts one period prior to the G and ends at the same time as the G
Cash Flow Diagrams 0 0 1 1 2 2 3 3 4 4 5 5 6 6 When G A (First value no equal to G) G’s are broken into “A’s” and “G’s” A A G G 2G 2G 3G 3G 4G 4G

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