APPENDIX II. TABLES OF COMPOUND INTEREST 

 AND DISCOUNT. 



Examples of the Use of the Tables : 



Table I. A capital of 1 at 3 per cent in twenty years becomes 1*8061 ; 

 therefore 100 would become 100 x 1'8061 = 180'61 = 180, 

 12s. 2d. 



,, II. A capital of 1 obtainable in 40 years has, at 3 per cent, a 

 present value of only 0'3066 ; therefore 100 would only 

 have a present value of 100 x '3066 = 30 '66 = 30, 13s. 2d. 



III. A return of 1 due 10 years hence, and every 10 years after 

 that, has at 4 per cent a present value of 2 '0823 ; therefore 

 a similar return of 20 (as, for example, the net income from 

 a piece of coppice cut every 10 years) would have a present 

 value of 20x2-0823 = 41 -646 = 41, 12s. lid. 



,, IV. A return of 1 obtainable for the next 20 years represents, at 3 

 per cent interest, 26'8704 at the end of that time ; therefore 

 a hunt leasing a piece of woodland as a fox -co vert for 20 

 years at a rental of 20 a-year, will by the end of that time 

 have paid a sum equal -to 20 x 26'8704 = 537'408 = 537. 

 8s. 2cl. 



And conversel} 7 , this table can be used to ascertain the 

 annual payment necessary to establish a Fund which will 

 amount to a certain sum in n years, through dividing 

 the capital by the final value 



For example, if 5000 are payable 20 years hence, what 

 sum must be invested annually at 3 per cent to form a fund 

 that will clear the debt then? Here r = 5000 -J- 26 "8704 

 = 186 -07 = 186, is. 5d. 



V. An annual return of 1 obtainable for the next 20 years has, 

 at 3 per cent interest, a present value of 14 '8775 ; therefore 

 a rental of 20 a-year payable by a hunt leasing a wood for 

 20 years as a fox-covert would, at 3 per cent, be equal to 

 a present total payment of 20 x 14 '8775 = 297 '55 = 297, 11s. 

 And conversely, the annual sum required to liquidate 

 within the course of n years a debt now incurred, is ascer- 

 tained through dividing this sum by the present value 

 as shown in this table 



l-0jpx0-0i\ 



"1-0^-1 ) 



For example, if a debt of 5000 be now incurred, it 

 can, reckoning 3 per cent interest, be gradually liquidated 

 (along with the interest due on it) in. 20 years by an annual' 

 payment of r=5000-M4'8775 = 336-077 = 336, Is. 6d. 

 151 



