Calculate the equal quarterly series equivalent to the decreasing gradient serie

Question

Calculate the equal quarterly series equivalent to the decreasing gradient series given below. Assume the interest rate is 8%. SHOW WORK.

a. $10,000 at the end of 1st Quarter

b. $9,500 at the end of 2nd Quarter

c. $9,000 at the end of the 3rd Quarter

d. $8,500 at the end of the 4th Quarter

e. $8,000 at the end of the 5th Quarter

f. $7,500 at the end of the 6th Quarter

g. $7,000 at the end of the 7th Quarter

h. $6,500 at the end of the 8th Quarter

i. $5,000 at the end of the 9th Quarter

j. $4,000 at the end of the 10th Quarter

k. $3,000 at the end of the 11th Quarter

l. $2,000 at the end of the 12th Quarter

Explanation / Answer

Quarter Cell Amount Cell PV@2%per quarter Formulae 1 A29 10000 C29 9803.92 =C29/(1.02^A29) 2 A30 9500 C30 9131.10 3 A31 9000 C31 8480.90 4 A32 8500 C32 7852.69 5 A33 8000 C33 7245.85 6 A34 7500 C34 6659.79 7 A35 7000 C35 6093.92 8 A36 6500 C36 5547.69 9 A37 5000 C37 4183.78 10 A38 4000 C38 3281.39 11 A39 3000 C39 2412.79 12 A40 2000 C40 1576.99 =C40/(1.02^A40)

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