340 



APPENDIX II 



TABLES OF COMPOUND INTEEEST. 



A. Amount to which a capital accumulates with compound 



interest in n years : — 



C„ = C„ X 1-0//'. 

 Let d',, = £50 ; n = 30 years ; 2^ = 2h per cent. ; then T..,, = 



50 X 2-0976 = £104-88. 

 If )i = 32 years, then C',.- = C„x 1-025-'" x 1-025- = 104-88 x 



1-0506 = £110-19. 



B. Present value of a capital to Ije realised after n years : — 



Let C'„ = £80 ; n — M) j'ears ; ^j = 2| per cent. ; then C„ = 

 80 x -3724 = £29-79. 



C. Present value of a perpetual rental, B, due every n years : — - 



" l-0i;"-r 

 Let B = £100 ; n = 50 years ; j^ = 2i per cent. ; then C'„ = 

 100 x -4103 = £41-03." 



D. Present value of a rental, /•, due at the end of every year, 



altogether n times : — 



^ r(l-Oj/'-l ) 

 " l-0;j" x -Op • 



Let r = £10 ; a = 30 years ; j; = 2i per cent. ; then C,^ = 



10 X 20-9303 = £209-303. 

 If the rentals refer to the past ii years, the amounts in this 

 Table must be multiplied by the corres^Jonding values 

 of l'02y\ to be taken from Table A, so as to comply with 

 the formula — • 



r(l-Oj/'-l) 

 -O^j 

 In the above example — 



C„ = 209-303 X 1-025"" = £439 ; 

 or — 



., 10 {l-025«'^ - 1) 10 X 1-0976 p , on 



