ANNUITIES. 



To find the value of any annuity during 

 the continuance of a life of any given 

 age, or during the joint continuance of 

 two lives, it is only necessary to multiply 

 the value in the table, against the given 

 age, by the annuity ; or to find the annui- 

 ty equivalent to any certain sum, divide 

 the sum by the value in the table against 

 the given age. 



EXAMPLES. What is the difference in 

 value between an annuity of 50/. during 

 the life of a person aged 35, and an annui- 

 ty of 60/. during two lives of 30 and 35, 

 to cease when either of the two lives shall 

 fail ? 



The value in Table III. against the age 

 of 35 is 12,502, which multiplied by 50 

 gives 625.11. the value in table V. against 

 the ages of 30 and 35 is 9.954, which mul- 

 tiplied by 60 gives 597.24^. the value of 

 the former annuity, therefore exceeds the 

 latter by 27/. 17s. 2rf. 



What annuity during his life, ought a 

 person aged 45 to receive in lieu of an 

 annuity of 201. certain for the term of 18 

 years ? 



The value of an annuity certain for 18 

 years, is by table 11. 11.689587, which 

 multiplied by 20 gives 233.7917/. this sum 

 divided by 11. 105, the value of an annuity 

 during a life of 45, by table HI. gives the 

 answer of 211. Is. 



What annuity, during his life, ought a 

 person aged 40" to recieve for 500/. ? 



The value of an annuity during a life of 

 40 years of age, is by table III. 11.837, 

 and 5001. divided by this sum gives 42/. 

 4*. 9d. per annum ; but if the value of the 

 life is taken, as in table IV. (or 13.466,) 

 the sum to be received will be 37/. 2s. 7d. 

 For the values of annuities which are 

 not to commence till after a certain peri- 

 od, or after a given life or lives. See RE- 

 VEKSIOSS. 



Annuities are frequently granted by 

 parishes, trusts, and public societies, for 

 the purpose of raising-money for the erec- 

 tion or repair of churches, chapels, work- 

 houses, bridges, or other expensive build- 

 ings, it being often found practicable to 

 obtain money in this way, when it could 

 not be procured at the ordinary rate of 

 interest; it has likewise the recommenda- 

 tion of gradually extinguishing the debt, 

 which might otherwise often remain a 

 permanent burthen. Life annuities are 

 also frequently granted, for money bor- 

 rowed by persons possessing life estates, 

 and who, therefore, cannot give the lend- 

 er a permanent security. As such annui- 

 ties depend on the life of the grantor, few 

 persons are disposed to purchase them, 



unless they can be obtained on such terms, 

 as, after allowing for the expense of as- 

 suring the grantor's life, leaves an income 

 somewhat greater than the common rate 

 of interest. It also frequently happens 

 that the annuities are not very punctually 

 paid, -which, with other risks attending 

 them, causes annuities of this description 

 always to sell considerably under their 

 real value ; and in some instances the ne- 

 cessities of the borrowers have led them 

 to make grants of this kind on the most 

 exorbitant terms. To throw, however, 

 some check upon improvident transac- 

 tions of this kind, which are usually car- 

 ried on with great privacy, the statute 17 

 Geo. III. c. 26, usually called the Annuity 

 Act, has directed, that upon the sale of 

 any life annuity of more than the value of 

 10/ (unless on a sufficient pledge of lands 

 in fee simple, or stock in the public funds) 

 the true consideration, which shall be in 

 money only, and the names of the parties, 

 shall be set forth and described in the se- 

 curity itself, in words at length ; and a 

 memorial of the date, the names of the 

 parties, and of all the witnesses, and of 

 the consideration money, shall, within 

 twenty days after its execution, be enrol- 

 led in the Court of Chancery, else the se- 

 curity shall be null and void. All con- 

 tracts for the purchase of annuities from 

 persons under 21 years of age are utterly 

 void, and incapable of confirmation after 

 the party becomes of age. Procuring or 

 soliciting a minor to grant any life-annuity, 

 or to promise or engage to ratify it when 

 he becomes of age, is an indictable mis- 

 demeanor, and punishable by fine and im- 

 prisonment; as is likewise the taking more 

 than ten shillings per cent, for procuring 

 money to be advanced for any life annui- 

 ty. This act does not extend to annuities 

 granted by any body corporate, or under 

 any authority or trust created by act of 

 parliament. 



Notwithstanding these regulations, per- 

 sons having occasion to raise money by the 

 grant of life annuities were obliged to 

 submit to the most disadvantageous terms, 

 as it seldom happened that individual pur- 

 chasers would give for such annuities 

 more than eight years purchase, on lives 

 above 30 years of age ; or 7 years pur- 

 chase on lives above 40 ; while, on the 

 other hand, persons desirous of investi ng 

 money in an annuity on their own life 

 were generally under the necessity of ac- 

 cepting" private security, or of waiting till 

 an opportunity offered of obtaining 1 the 

 security of some local toll or rates. To 

 remedy these inconveniences, an act was 



