{"id":3358,"date":"2020-07-26T23:01:54","date_gmt":"2020-07-26T22:01:54","guid":{"rendered":"https:\/\/www.nickzom.org\/blog\/?p=3358"},"modified":"2024-04-06T21:08:30","modified_gmt":"2024-04-06T20:08:30","slug":"how-to-calculate-and-solve-for-present-worth-gradient-series-economic-equivalence","status":"publish","type":"post","link":"https:\/\/www.nickzom.org\/blog\/2020\/07\/26\/how-to-calculate-and-solve-for-present-worth-gradient-series-economic-equivalence\/","title":{"rendered":"How to Calculate and Solve for Present Worth | Gradient Series | Economic Equivalence"},"content":{"rendered":"

\"\"<\/p>\n

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)\u00a0<\/strong>and\u00a0Number of Years (N).<\/strong><\/p>\n

The formula for calculating present worth:<\/p>\n

P = G[((1 + i)N<\/sup>) – iN – 1] \/ [i\u00b2((1 + i)N<\/sup>)]<\/p>\n

Where:<\/p>\n

G = Gradient Amount
\nP = Present Amount or Worth
\ni = Interest Rate
\nN – Number of Years<\/p>\n

Let’s solve an example;
\nFind the present worth when the gradient amount is 22, the interest rate is 0.2 and the number of years is 2.<\/p>\n

This implies that;<\/p>\n

G = Gradient Amount = 22
\ni = Interest Rate = 0.2
\nN – Number of Years = 2<\/p>\n

P = G[((1 + i)N<\/sup>) – iN – 1] \/ [i\u00b2((1 + i)N<\/sup>)]
\nP = 22[((1 + 0.2)2<\/sup>) – 0.2(2) – 1] \/ [0.2\u00b2((1 + 0.2)2<\/sup>)]
\nSo, P = 22[((1.2)2<\/sup>) – 0.4 – 1] \/ [0.0400000000000001((1.2)2<\/sup>)]
\nP = 22[1.44 – 0.4 – 1] \/ [0.04000000000000001 x 1.44]
\nP = 22[0.040000000000000036] \/ [0.05760000000000001]
\nThat is, P = 22 x 0.6944444444444449
\nP = 15.27<\/p>\n

Therefore, the\u00a0present worth\u00a0<\/strong>is\u00a0\u20a615.27.<\/strong><\/p>\n

Read more:\u00a0How to Calculate and Solve for Present Worth | Geometric Gradient | Economic Equivalence<\/a><\/p>\n

How to Calculate Present Worth | Gradient Series Using Nickzom Calculator<\/strong><\/h3>\n

Nickzom Calculator \u2013\u00a0The Calculator Encyclopedia<\/strong> is capable of calculating the present worth.<\/p>\n

To get the answer and workings of the present worth using the Nickzom Calculator \u2013 The Calculator Encyclopedia.\u00a0<\/strong>First, you need to obtain the app.<\/p>\n

You can get this app via any of these means:<\/p>\n

Web<\/strong>\u00a0\u2013\u00a0https:\/\/www.nickzom.org\/calculator-plus<\/a><\/p>\n

To get access to the\u00a0professional\u00a0<\/strong>version via web, you need to\u00a0register<\/strong>\u00a0and\u00a0subscribe\u00a0<\/strong>for\u00a0NGN 1,500\u00a0<\/strong>per\u00a0annum<\/strong>\u00a0to have utter access to all functionalities.
\nYou can also try the\u00a0demo\u00a0<\/strong>version via\u00a0https:\/\/www.nickzom.org\/calculator<\/a><\/p>\n

Android (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=org.nickzom.nickzomcalculator<\/a>
\nAndroid (Free)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=com.nickzom.nickzomcalculator<\/a>
\nApple (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/itunes.apple.com\/us\/app\/nickzom-calculator\/id1331162702?mt=8<\/a>
\nOnce, you have obtained the calculator encyclopedia app, proceed to the\u00a0Calculator Map,\u00a0<\/strong>then click on\u00a0Economics<\/strong>\u00a0<\/b>under\u00a0Engineering<\/strong>.<\/strong><\/p>\n

\"\"<\/p>\n

Now, Click on\u00a0Economic Equivalence\u00a0<\/strong>under\u00a0Economics<\/strong><\/p>\n

\"\"<\/p>\n

Now, Click on Present Worth <\/strong>under\u00a0Economic Equivalence<\/strong><\/p>\n

\"\"<\/p>\n

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) <\/strong>and\u00a0Number of Years (N).<\/strong><\/p>\n

\"\"<\/p>\n

Now, enter the values appropriately and accordingly for the parameters as required by the Gradient Amount (G)<\/strong> is 22<\/strong>, Interest Rate (i) <\/strong>is 0.2 <\/strong>and\u00a0Number of Years (N)<\/strong> is 2<\/strong>.<\/p>\n

\"\"<\/p>\n

Finally, Click on Calculate<\/p>\n

\"\"
\n\"\"<\/p>\n

As you can see from the screenshot above,\u00a0Nickzom Calculator<\/strong>\u2013 The Calculator Encyclopedia solves for the present worth and presents the formula, workings and steps too.<\/p>\n","protected":false},"excerpt":{"rendered":"The image above represents present worth. To calculate present worth, three essential parameters are needed and these parameters…","protected":false},"author":5,"featured_media":13683,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"How to Calculate Present Worth","_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"Master the steps and process on How to Calculate and Solve for Present Worth | Gradient Series | Economic 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