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Class 8 9-14

# Class 8 9-14 - Class 8 Geometric Gradients ISE 2014 Click...

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Click to edit Master subtitle style Class 8 – Geometric Gradients ISE 2014 Fall 2011

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Announcements If you have an official conflict with exam 1 on Tuesday Sept. 27th from 7:00-8:30, you need to let me know by next Wednesday the 21st The alternate times for those with official conflicts are Monday 4:00-5:30 Tuesday 3:00-4:30
Announcements Homework 3 due today at noon Homework 4 posted on scholar this afternoon

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Geometric Gradients First lets visualize what kind of problem we’re dealing with…
Properties of Geometric Cash payments on consecutive periods Cash changing each period based on a rate (example 4%) This is different from the uniform gradients we learned Monday, which increase or decrease by a constant value (example \$50)

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Geometric Gradients We call the growth rate f f = growth of the size of cash flows We still have our interest rate i which is the time value of money The difficult part of geometric gradients is dealing with each of these rates simultaneously
Tools for Geometric

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Class 8 9-14 - Class 8 Geometric Gradients ISE 2014 Click...

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