Engineering Board Exam Reviewer · Uniform Gradient Series · medium
Payments are P5,000 at the end of year 1 and increase by P1,000 each year for 6 years. Find the present worth at 12% interest.
- P20,557.04
- P24,668.44
- P29,487.21
- P26,954.05
Answer
C. P29,487.21
Solution
P=A1(P/A,i,n)+G(P/G,i,n)=5,000(4.1114)+1,000(8.9302)=P29,487.21.
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