The image above represents present worth. To calculate present worth, three essential parameters are needed and these parameters are **Gradient Amount (G), Interest Rate (i)Â **andÂ **Number of Years (N).**

The formula for calculating present worth:

P = G[((1 + i)^{N}) – iN – 1] / [iÂ²((1 + i)^{N})]

Where:

G = Gradient Amount

P = Present Amount or Worth

i = Interest Rate

N – Number of Years

Let’s solve an example;

Find the present worth when the gradient amount is 22, the interest rate is 0.2 and the number of years is 2.

This implies that;

G = Gradient Amount = 22

i = Interest Rate = 0.2

N – Number of Years = 2

P = G[((1 + i)^{N}) – iN – 1] / [iÂ²((1 + i)^{N})]

P = 22[((1 + 0.2)^{2}) – 0.2(2) – 1] / [0.2Â²((1 + 0.2)^{2})]

So, P = 22[((1.2)^{2}) – 0.4 – 1] / [0.0400000000000001((1.2)^{2})]

P = 22[1.44 – 0.4 – 1] / [0.04000000000000001 x 1.44]

P = 22[0.040000000000000036] / [0.05760000000000001]

That is, P = 22 x 0.6944444444444449

P = 15.27

Therefore, theÂ **present worthÂ **isÂ **â‚¦15.27.**

Read more:Â How to Calculate and Solve for Present Worth | Geometric Gradient | Economic Equivalence

**How to Calculate Present Worth | Gradient Series Using Nickzom Calculator**

Nickzom Calculator â€“Â **The Calculator Encyclopedia** is capable of calculating the present worth.

To get the answer and workings of the present worth using the **Nickzom Calculator â€“ The Calculator Encyclopedia.Â **First, you need to obtain the app.

You can get this app via any of these means:

**Web**Â â€“Â https://www.nickzom.org/calculator-plus

To get access to theÂ **professionalÂ **version via web, you need toÂ **register**Â andÂ **subscribeÂ **for**Â NGN 1,500Â **per**Â annum**Â to have utter access to all functionalities.

You can also try theÂ **demoÂ **version viaÂ https://www.nickzom.org/calculator

**Android (Paid)**Â â€“Â https://play.google.com/store/apps/details?id=org.nickzom.nickzomcalculator

**Android (Free)**Â â€“Â https://play.google.com/store/apps/details?id=com.nickzom.nickzomcalculator

**Apple (Paid)**Â â€“Â https://itunes.apple.com/us/app/nickzom-calculator/id1331162702?mt=8

Once, you have obtained the calculator encyclopedia app, proceed to theÂ **Calculator Map,Â **then click onÂ **Economics****Â **underÂ **Engineering****.**

Now, Click onÂ **Economic EquivalenceÂ **underÂ **Economics**

Now, Click on **Present Worth **underÂ **Economic Equivalence**

The screenshot below displays the page or activity to enter your values, to get the answer for the present worth according to the respective parameters which are the **Gradient Amount (G), Interest Rate (i) **andÂ **Number of Years (N).**

Now, enter the values appropriately and accordingly for the parameters as required by the **Gradient Amount (G)** is **22**,** Interest Rate (i) **is **0.2 **andÂ **Number of Years (N)** is **2**.

Finally, Click on Calculate

As you can see from the screenshot above,Â **Nickzom Calculator**â€“ The Calculator Encyclopedia solves for the present worth and presents the formula, workings and steps too.