Present value for Gradient payment

Description

In economics, present value, also known as present discounted value, is a future amount of money that has been discounted to reflect its current value, as if it existed today. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money. Gradient is a steadily increasing payment amount, that increases for each subsequent period.

Related formulas

Variables

PVGPresent value for Gradient payment (dimensionless)
GThe steadily increasing payment amount, that starts at G and increases by G for each subsequent period (dimensionless)
iThe discount rate, or the interest rate at which the amount will be compounded each period (dimensionless)
nThe number of periods (dimensionless)