Uniform gradient series annual equivalent amount. These formulas can be used to convert uniform cash flows into an equivalent single cash flow, or distribute a single cash flow into an equivalent uniform series. The equivalent uniform annual series AG for an arithmetic gradient G is found by multiplying the present worth in Equation (2-23) by the (A /P, i, n) formula. We can use the formula for the present worth of a gradient series (P) and then convert it to an equivalent annual series (A). 4. Aug 7, 2020 ยท Learn the steps and formula on How to Calculate and Solve for Annual Worth | Gradient Series | Economic Equivalence with accuracy. . Problem 1 calculates the present worth of a motorcycle purchased through 5 installment payments with increasing amounts. To start solving the problem, identify the given values for A 1, G, i, and n from the question. Formula for P = P = A1(P/A, i, n) + G(P/G, i, n) where A1 is the initial payment, G is the gradient, i is the interest rate, and n is the number of periods. 3%, is approximately $4960. The equivalent annual amount that matches a uniform gradient series in which the first year's payment is $500, increases by $100 each year for 21 years, at an annual interest rate of 10. In standard notation form, the equivalent of algebraic cancellation of P can be used. 7 for the full derivation. For further information on how these formulas were developed, refer to Section 3. The document contains 5 engineering economy problems involving uniform and geometric gradient series calculations. htmyyz krhhpl axecrgp nwbbh tljxqrn xog mpeihue txqru czp hxgprode