FORMULA OF COMPOUND INTEREST 



But should the period of discount lie between the year a and 

 the final year n, when the crop is harvested, as it does when 

 the value of growing timber is computed at a years, this formula 

 (Q 4 ) is 



g = 



i.op n ~ 



I 



i.op n ' 

 r' 



R = 



i.op n 



(Xa) 



When the first rental is due in the present year, the series 

 becomes 



R = 



i.op n 



(XI) 



By separating the first payment from the series, the remaining 

 terms equal ; - (see IX), and the sum is 



i.op n 



r' 



(XIa) 



i.op n i 



An annual rental, payable perpetually, has a present, expecta- 

 tion, or capital value (Q 4 ) of 



r 

 i. op' 



i 



8 

 2 



i. op 



