APPENDIX 167 



C. Suggestions for problems for use in teaching. 



The following problems are offered here merely as suggestions. 

 Some practice in the use of the analyses and formulae has been 

 found necessary to fix these matters in the minds of the students. 



1. Capital Co = $50, p = 3%; what does this capital grow 

 into in 7, 19, 37, and 83 years? 



2. Capital now is $500; has been out at 2^/2% compound in- 

 terest; what was it worth 17, 43, and 120 years ago? 



3. $140 grew into $190 in 17 years; what is i.op 17 and what 

 is p? 



4. A tree contains 430 cubic feet ; it is growing at 1.2% ; what 

 is the growth for 5 years in cubic feet ? 



5. A tree now has 430 cubic feet; 23 years ago it had 375 ; at 

 what p did it grow, what is i.op n in this case? 



400 



6. Schneider's formula says: p v - for older timber (D 



nD 



being dbh and n the number of rings in outer one inch). Suppose 

 stand of timber has 40,000 cubic feet; average D 21 inches, and n 

 12 ; at what rate is this stand growing, what is the value of five years 

 growth at 7 cents per cubic foot ? 



7. A locomotive sets fire to a stand of pine planted 25 years 

 ago ; it cost 10 dollars an acre to plant ; what is the loss if only 

 planting expense and interest at 3% is counted? 



8. A stand is now 35 years old. We expect it to be worth 

 $35 when 80 years old; what is its present value; p = 3%, and no 

 expenses figured. 



9. A farm rents at 100 dollars, clear, over and above expenses. 

 Rate per cent 3% and also 2%. What is the value of the farm and 

 what is the value of 25 years use of it? 



10. A forest property is worth $10,000, based on income, but 

 it can not be sold until 15 years from now ; the property is used and 

 no change is expected. What is its value today at 2% and at 4% ? 



11. A note for $500 at 4% is due in 7 years; it has run 3 

 years ; all interest and capital to be paid in at end of 7 years. What 

 is the note worth now to a man who is willing to take 3% on his 

 money ? 



12. A stand of timber contains 550 cords; it contained 470, 

 10 years ago; what was p v for this time? If this timber now brings 



.$4.50 per loo cubic feet but brought only $3.75 per 100 cubic feet, 

 10 years ago, what is p q , quality growth, in per cent? If there is 

 no price growth, what is p f , i. e., the growth in value of this stand? 



