240 FINANCIAL ASPECT OF AFFORESTATION 



planting ,8 ; and the net annual outgoings be 2s., and if 4 

 per cent, compound interest be reckoned : 



1 value of thinnings at I2th year will amount 



in 58 years* to ^2x97 . = ^19 8 o 



6 value of thinnings at i8th year will amount 



in 52 years to 6 x 7-7 . . . = 46 4 o 



^5 value of thinnings at 25th year will amount 



in 45 years to $ x 5-8 . . . = 29 o o 



7 value of thinnings at 32nd year will amount 



in 38 years to 7 x 4-4 . . . . = 30 16 o 

 ^8 value of thinnings at 4oth year will amount 



in 30 years to & x 3-2 . . "... * . : . = 25 12 o 

 ^9 value of thinnings at 5oth year will amount 



in 20 years to ^9 x 2-2 . . . . = 19 16 o 

 ^15 value of thinnings at 6oth year will amount 



in 10 years to ^15 x 1-5 . . . ] % ' = 22 10 o 

 Value of final crop, 3000 cub. ft., at is. . . 150 o o 



(say) 343 o o 



Deduct outgoings, 2s. per acre per annum (over 

 and above any sum received as a sporting 

 rent), for 70 years = 2s. x 364 1 (say) . 36 o o 



30? o o 



Add original value of the land . . . 12 o o 

 Net Credit Sum . ^319 o o 



* If compound interest be reckoned at 4 per cent., i amounts to 97 in 58 years, 

 f i per annum amounts to ^364 in 70 years. Therefore is. amounts to 3645. 

 in 70 years. 



Now, the original outlay was 20 per acre. Therefore, 

 20 has amounted to .319 in 70 years; and 1 has 

 amounted to 15-9 in 70 years. 



And by reference to tables 1 it is seen that, at 4 per cent, 

 compound interest, i amounts to 15-57 in 7 years. 



Therefore, it follows that the rate of compound interest 

 that has been yielded is just over 4 per cent. 



In the above case, if the sums received for thinnings, and 

 the cost of the annual outgoings, had been reckoned at 3 J per 

 cent, compound interest instead of 4 per cent, the net credit 

 sum would have been 292, which would have represented 

 about 3f per cent, compound interest, on the original outlay. 



With reference to the former case, where the value of 

 thinnings, and the cost of outgoings is calculated at 4 per 

 1 Vide Appendix. 



