AN EXAMPLE 33 



Calculatioti for Purchase Price. 



£ s. d. 



Annual value , ... 120 



£ s. d. 



Less tithe 10 



„ land tax ... 200 



„ repairs ... 8 



20 



Net annual value ... ... ... 100 



Years' purchase ... ... ... 25 



Market value £2,500 



Calculation for Loan on Annuitij Sijstem. 



£ s. d. 

 £2,500. Interest at 3| per cent. .. . 87 10 

 Sinking fund, spread over sixty years, 



at I per cent 12 10 



Annual payment on annuity system £100 



Position of Tenant Purchaser. 



£ 3. d. 



Annual payment to State ... ... 100 



Outgoings and repairs ... ... 20 



Total payments per annum (same as 



market rent) £120 



It will be observed that the tenant farmer is 

 paying to the State and in outgoings a yearly 

 sum equal to the present annual value. 



With regard to the position of the State 



5 



