http://www.allaboutcircuits.com/vol_4/chpt_13/2.html
Starting from V1 and going through V3, this would give each input voltage exactly half the effect on the output as the voltage before it. In other words, input voltage V1 has a 1:1 effect on the output voltage (gain of 1), while input voltage V2 has half that much effect on the output (a gain of 1/2), and V3 half of that (a gain of 1/4). These ratios are were not arbitrarily chosen: they are the same ratios corresponding to place weights in the binary numeration system. If we drive the inputs of this circuit with digital gates so that each input is either 0 volts or full supply voltage, the output voltage will be an analog representation of the binary value of these three bits.
If we chart the output voltages for all eight combinations of binary bits (000 through 111) input to this circuit, we will get the following progression of voltages:
We can adjust resistors values in this circuit to obtain output voltages directly corresponding to the binary input. For example, by making the feedback resistor 800 Ω instead of 1 kΩ, the DAC will output -1 volt for the binary input 001, -4 volts for the binary input 100, -7 volts for the binary input 111, and so on.
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