INTEREST. 



Ex. 3. A person being entitled to an 

 annuity of 50 guineas per annum, is will- 

 ing- that the same shall not commence till 

 after the expiration of 6 years, on being 



allowed an equivalent annuity. What 

 this annuity be ? 



then allowed an e 

 must 



52.5 X 1.340095 = 701. 7s. Id. 



TABLE II. 



Showing the present Value of II. to be received at the end of any Number of 

 Years not exceeding a Hundred, discounting at the rate of 5 per cent. Compound 

 Interest. 



Ex. 1. A person is entitled to receive 

 10001. at the end of seven years from the 

 present time ; what sum paid him imme- 

 diately would be equivalent thereto ? 

 1000 X .710681 = 710/. 13s. 7</. 

 Ex. 2. What is the present worth of 

 222/. 10s. payable 15 years hence ? 

 222.5 X .481017 = 107/. Os. 6$d. 



Ex. 3. What is the present value of 

 1392f 19s. 7d.- to be received at the ex- 

 piration of 21 years ? 



1392.98 x .358942 = 500/. 



Tables showing the present value or 

 amount of annual payments of compound 

 interest are given under the articles AN- 

 NUITIES and LEASES. 



It is not legal to lend money at com- 

 pound interest, but in granting or pur- 



chasing annuities, either for lives or terms 

 of years, it is always usual to compute 

 their value at compound interest; this is 

 particularly the case with respect to sums 

 of money which are not receivable till 

 some future period. See REVERSIONS. 



INTEREST, in law, is usually taken for a 

 term, or chattel real, and more particu- 

 larly for a future term. 



INTEREST of money, is the premium paid 

 for the use of a sum, and is by law, in this 

 country, limited strictly to five per cent, 

 per annum. See USURY. 



Where an estate is devised for pay- 

 ment of debts, chancery will not allow in- 

 terest for book debts. In case of a vested 

 legacy, due immediately, and charged on 

 land, or money in the funds, which yield 

 an immediate profit, interest shall be pa}-- 



