18 BULLETIN 136, U. 8S. DEPARTMENT OF AGRICULTURE. 
TaBLE 11.—Schedule of interest and principal to retire a serial loan of $100,000 at 5 per 
cent, with annual principal repayments of $5,000. 
‘Principal | | Principal ener Principal. 
|outstand-! eae outstand-| ea 
Years.| ing at jaterest |e Spa a Total. || Years.| ing at jiibetest Eapald At Total. 
beginning’ or year. | endo | beginning year. | endo 
| of year. yea | of year. years 
1 | $100,000 $5, 000 $5,000 | $10,000 1 12 | $45,000 $2, 250 $5, 00 $7, 250 
2) 95,000 4,750 5, 000 9,750 || 13 | 40,000 2,000 5,000 7,000 
3 90, 000 4,500 5,000 9,500 | 14 39, 000 1,750 5,000 6, 750 
4 |} 85,000 4,250 | 5,000 9,250 : 15 30, 000 1,500 5,000 6, 500 
5 | 80,000 4,000 | 5,000 9,000 16 25,000 1,250 5,000 6, 250 
6 | 75,000 3,790 | 5,000 8, 750 17 20, 000 1,000 5,000 6, 000 
7 70, 000 3,900 | 5,000 8,500 18 15, 000 750 5, 000 5, 730 
8 | 65,000 3, 250 5,000 8, 250 | 19 10, 600 500 |; 5,000 5, 500 
9 > 40,000 3,000 5,000 8,000 | 20 | 5,000 250 5,000 5, 250 
10 55, 000 2,750 5,000 7, 750 SS 
11 | 50,000 2,500 5,000 7,500 | Totals?) =>. See 52,500 100,000 | 152, 500 
Comparison of serial, annuity, and sinking-fund bonds.— 
It will be noticed that the total expense to the community under the 
serial plan is somewhat less than under the annuity pian. The 
expense by either method is, however, considerably less than the 
expense under the sinking-fund plan. For the purpose of comparison 
the total expense to the community under each plan is assembled 
under Table 12. 
Tables 8 to 11, inclusive, are computed with interest payable 
annually. Bonds with interest payable semiannually sell better. 
Similar tables or schedules for the annuity and serial plans of bond 
issues to conform to semiannual interest payments can be easily 
prepared. Schedules can also be prepared to show the progress of a 
bond loan when the bonds are bought at a premium or discount.! 
TABLE 12.—Total cost of a loan of $100,000 for 20 years, interest compounded annually. 
Sinking fund compounded | 
Annual annually at— | 
eee Annuity. | Serial. 
| bonds. |; per cent. pa | 4 percent. 
4 $154,431 | $150,722 | $147,163 | $147,163 | $142,000 
43 164, 431 160, 722 157, 163 153, 752 147, 250 
i) 
5 
174, 431 170, 722 167, 163 160, 485 152,500 
- 184, 431 180,722 | 177,163 167, 359 157, 750 
6 194, 431 190,722 | 187,163 174, 369 163,000 
In a bond issue by any given plan the amount, the interest, 
and the term may be fixed at will, but when this is done the annual 
repayments of principal and interest are theoretically determined: 
Thus, by the annuity method, if $100,000 is to be issued at 5 per cent 
annually and retired in 20 years, the annual amount of interest, 
and principal is at once determined to be approximately $8,000. 
1 Cf. Appendix D, pages 91 to 115, for details of such schedules. 
Ee 
