214 ARITHMETIC. 



EXAMPLES. 



I. What is the present worth of] an annuity of 40I. to 

 continue 5 years, discounting at 5 per cent, per annum, 

 CPinpound interest ? 



ratio = i'o5)40'ooooo(38'095=rpresentworthforiyear. 

 ratio) = i'io25)40'ooooo(36'28i= do. for 2 years. 



ratio| = ri57525)4o-pooop(34'556=: do. for 3 years. 



ratio| = i'2i55o6)4o'ooooo(3a-S99=: do. for4years. 



— 7-5 



ratio! 1= I '2 762 18)40-00000(3 1 "342 =2 do. for 5 years. 



173*^73 = 73^' 3S- 5t^- = 

 whole present worth of the annuity required. 



2. What is the present worth uf an annuity of 2x1. 

 I OS. p^d. to continue 7 years, at 6 per cent, per annum, 

 compound interest ? 



Ans. 120L 5s. 



3. What is 70I. per annum, to continue ^g years,, worth 

 in present money, at the rate of 5 per ceat. per "annum ? 



Ans. 1321*30211. 

 To 



The present ivorth of an annuity for years and parts of a year may 

 be found, thus ■ : 



1. Find the present wortli for the whole years as before. 



2. Find the present worth of this present worth, discounting 

 for the given parts of a year, and it will be the whole present 

 worth required. 



