# Decreasing Geometric Gradient

Decreasing Geometric Gradient

My book does not explain well the formula for a Decreasing Geometric Gradient. For example: if I have an initial cost of 4 million and a yearly decreasing cost of 25% per year through year 5, what would be the equivalent PV and Annual Cost?

https://brainmass.com/economics/exchange-rates/decreasing-geometric-gradient-114718

#### Solution Summary

The solution illustrates decreasing geometric gradient through an example. The formula of decreasing geometric gradient is determined.

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