# How to Calculate and Solve for Present Worth | Gradient Series | Economic Equivalence

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:

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.

### 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:

To get access to theÂ professionalÂ version via web, you need toÂ registerÂ andÂ subscribeÂ forÂ NGN 1,500Â perÂ annumÂ to have utter access to all functionalities.
You can also try theÂ demoÂ version viaÂ https://www.nickzom.org/calculator

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 EconomicsÂ 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 Calculatorâ€“ The Calculator Encyclopedia solves for the present worth and presents the formula, workings and steps too.