(F/P & P/F)

(P/A & A/P)

(A/F & F/A)

(P/G & A/G)

G = Constant arithmetic change in cash flows from one time period to the next; G may be positive or negative.

The formula

Excel function

spreadsheet function

It is common for annual revenues and annual costs such as maintenance, operations, and labor to go up or down by a constant percentage, for example, 5% or 3% per year.

Hand or Calculator Solution

Spreadsheet Solution