Consider an EOY geometric gradient, which lasts for nine years, whose initial value at EOY one is $4,700 and f=7% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the end of year one is $4,200. Complete the following questions to determine the value of the gradient amount, G. The interest rate is 9% per year.
a. What is P0 for the geometric gradient series?
b. What is P0 of the uniform (arithmetic) gradient of cash flows?
c. What is the value of G ?