2i6 ARiTHMETlG. 



EXAMPLES 



I. An esratc brings in yearly 79I. 4s. what would it ?elt 

 for, allowing the purchaser a— per cent, compound interest 

 fcr his money ? 



4*5 : 100 : : 79*2 

 loo 



4'5)792o'o{i';6ol. the answer^ 

 45 



342 

 315 



270 

 270 



2. "What is the price of a perpetual annuity of 40L dis- 

 counting at 5 per cent, compound interest f Ana. 2ooL 



. 3. What is a freehold estate of 75I. a year worth, all- 

 lowing the buyer 6 per cent, compound interest for his 

 money ? Ans. 125CI.' 



To find the present TForih cf an Annuityy or Frcehcld Estate^ 

 in Reversion, at Compound Interest, 



RULE.* 



I. Find the present worth of the annuity, as if it wer^ 

 to be entered on immediately. 



2. Find 



** This rule is sufficiently evident without a demonstration. 



Those, who wish to be acquainted with the manner of comput- 

 ing the values of annuities upon lives, may consult the writings of 

 Ivlr. Demoivre, Mr. Simpson, and Dr. Price, all of whom 

 have handled this subject in a very skilful and masterly manner. 



Dr, 



