Discussion
A series of 1000, 1200, 1400 and 1600 is best handled as
Answer: C
Correct answer: a uniform series of 1000 plus a gradient of 200
The series rises by a constant 200 each year, which is an arithmetic gradient. The standard treatment splits it into a uniform series equal to the first payment and a gradient starting at zero in the first year, because the gradient factors are tabulated on exactly that convention. Twenty per cent would only fit the first step, not the later ones.
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