1.  A geometric gradient that increases at g=6% per year for 15 years is shown in the accompanying diagram at fig (2). The annual interest rate is 12%. What is the present equivalent value of this gradient? 

Nel5-17 Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =7.07 %, Annual cash flow increases 20% each year, The first year value is $58 and the series is 8 yrs long. Present your answer with 2 decimal place precision.

The initial cost of a pickup truck is $11011 and will have a salvage value of $4142 after five years. Maintenance is estimated to be a uniform gradient amount of $160 per year, with zero dollars for first-year maintenance. The operation cost is estimated to be $0.27 per mile for 347 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

7. What is the annual sinking fund payment if in 10 years you need to have $225,000 available for equipment replacement? Use an interest rate of 4% compounded semiannually.

8. What is the present value of 16 years of equal quarterly payments of $2500 at an interest rate of 9% compounded quarterly?

9. What is the present worth of a geometrically increasing series with a first year payment of $10,000 increasing at 5% per year for 25 years if the interest rate is 6% compounded annually?