Craig's life insurance cost $2000 at the end of the first year of its 40-year life,...
Craig's life insurance cost $2000 at the end of the first year of its 40-year life, and the company has informed him that the rate will increase by 5% each year. This is an example of a(n) ____________ gradient.
* Annuitized
* Compounding
* Arithmetic
* Geometric
* None of the above
Homework Answers
In simple words, geometric series means an increase or decrease in a constant percentage change like for example 10% increases in construction cost each year
Here in the given question, the rate is also increased by 5% each year
So answer is a geometric gradient
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