Answer: The gradient of income growth is $12,59,741.59. This means that income must rise by $12,59,741.59 each year.
We follow these steps to arrive at the answer:
1. Calculating the total value of earnings after 15 years
We calculate the Future Value of the investment as follows:



This represents the total of revenues earned over 15 years from the investment.
2.Calculating the gradient
Since income increases linearly over 15 years, we can consider year 3 earnings as the base. Let the income increase in year 4 by x. Since income increases yearly, we can calculate income in each year as follows
Year Revenues
1 0
2 0
3 250000
4 250000 + x
5 250000 + 2x
6 250000 + 3x
7 250000 +4x
8 250000 + 5x
9 250000 + 6x
10 250000 + 7x
11 250000 + 8x
12 250000 + 9x
13 250000 + 10x
14 250000 + 11x
15 250000 + 12x
Total 32,50,000.00 + 78x
Now we equate the values in steps 1 and above to find 'x' the gradient



