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2. If a salary of 60 dollars per annum to be paid yoar. cy, be forborne 20 years, at 6 per cent. compound inerest; what is the amount ?
Under 6 per cent. and opposite 20, in Table II, you will find, Tabular number=36,78559
Ans. $2207,1354082207, 13cts. 5m. + 3. Suppose an Annuity of 1001. be 12 years in arrears, it is required to find what is riow due, compound interest being allowed at 5l. per cent. per annum?
Hus. £ 1591 14s. 3,024d. (by Table III.) 4. What will a pension of 1201. per annum, payable yearly, annount to in 3 years, at 5l. per cent. compound interest
Ans. £S78 6s. II. To find the present worth of Annuities at Compound
Divide the annuity, &c. by that power of the ratio sig, nified by the number of years, and subtract the quotient from the annuity: This remainter being divided by the catio less 1, the quotient will be the present value of the Anuuity sought.
1. What ready money will purchase an Annuity of 501 to continue 4 years, at šl. per cent. compound interest ? 4th power of 2 the ratio, S
177,2975177 58. 11Hd. Gns
BY TABLE III. Under 5 per cent. and even with 4 years. We have 3,54595=present worth of 11. for 4 years. Multiply by 50=Annuity.
Ans. £177,29750=present worth of the annuity.
2. What is the present worth of an annuity of 60 dols. per annum, tu continue 20 years, at 6 per cent. compound interest ?
Ans. 8688, 19 cts. + S. What is 30l. per annum, to continue 7 years, worth in ready money, at 6 per cent. compound interest
Ans. £ 167 9s. 5d. + III. To find the present worth of Annuitics, Leascs, &c.
taken in Reversion, at Compound Interest. 1. Divide the Annuity by that puwer of the ratio denoted by the time of its continuance.
2. Subtract the quotient from the Annuity : Divide the remainder by the ratio less 1, and the quotient will be the present worth to commence immediately,
3. Divide this quotient by that power of the ratio denoted by the time of Reversion, (or the time to come before the Annuity commences) and the quotient will be the present worth of the Annuity in Reversion.
per cent. :
1. What ready money will purchase an Annuity cf50l. payable yearly, for 4 years : but not to commence till two years, 4th power of 1,05=1,215546)50,00000(41,13513
Subtract the quotient=41,13513
Divide by 1,05-1=,05)8,86487 2d. power of 1,05=1,1023) 177,297(160,8156=6.160 16s. 30. lyr. present worth of the Annuity in Reversiwn.
OR BY TABLE 111, Find the present value of 11. at the given rate for the sum of the time of continuance, and time in reversion added together; from which value subtract the present worth of il
. for the time in reversion, and multiply the remainder by the Annuity; the product will be the answer.
Thus in Example 1.
=6 years, gives 5,07569% Time in reversion, =2 years, 1,859410
Remainder, 3,216282 X50
Ans. £160,8141 2. What is the present worth of 75l. yearly rent, which is not to commence until 10 years hence, and then to continue 7 years after that time at 6 per cent. ?
Ans. f 233 15s. Id. 3. What is the present worth of the reversion of a lease of 60 dollars per annum, to continue 20 years,
but not to commence till the end of 8 years, allowing 6 per cent. to the purchaser ? Ans. $451 78cts. 2o Mhe IV. To find the present worth of a Freehold Estate, or an Annuity to continue forever, at Compound Interest.
RULE. As the rate per cent is to 100l. : so is the yearly rent to the value required.
1. What is the worth of a Freehold Estate of 401. per annum, allowing 5 per cent. to the purchaser ?
As £5 : £100 :: 640 : £800 Ans. 2. An estate brings in yearly 1501. what would it sell for, allowing the purchaser 6 per cent. for his money?
Ans. £2500 V. To find the present worth of a Freehold Estate, in Reversion, at Compound Interest.
RULE. 1. Find the present value of the estate (by the foregomg rule) as though it were to be entered on immediately, and divide the said value by that power of the ratio de noted by the time of reversion, and the quotient will be the
present worth of the estate in Reversion.
1. Suppose a freehold estate of 40l. per annum to com. mence two years hence, be put on sale; what is its value, ollowing the purchaser 5l. per cent. ?
As 5 : 100 :: 40 : 800-apresent worth if entered on immediately.
Then, 1,05=1,1025)800,00(725,62358=7251. 125. 5 d. present worth of £800 in two years reversion. Ans.
OR BY TABLE Ill. Find the present worth of the annuiiy, or rent, for the time of reversion, which subtract from the value of the immediate possession, anu you will have the value of the estate in reversion.
Thus in the foregoing example, 1,859410–present worth of il. for 2 years.
40=annuity or rent.
74,376400=present worth of the annuity or rent, for
(the time of reversion. from 800,0000=value of immediate possession. Take 74,3764=present worth of rent.
£725,6236=£725 12s. 5 d. Ans. 2. Suppose an estate of 90 doliars per annum, to commence 10 years hence, were to be sold, allowing the purchaser 6 per cent. ; what is it worth?
Ans. 8837, 39cts, 2m. 3. Which is the most advantageous, a term of 15 years, in an estate of 100l. per annum; or the reversion of such an estate forever after the said 15 years, computing at the rate of 5 per cent. per annum, compound interest ?
Ans. The first terin of 15 years is better than the reversion forever afterwards, by 615 18s. 7 d.
A COLLECTION OF QUESTIONS TO EXERCISE
THE RREGOING RULES.
Ans. 3497. 2. What is the difference between 41 eagles, and 4099 diines ?
Ans. 10cts. 3. What number is that which being ir.ultip'ied by 21, the product will be 1365 ?
4. What number is that which being divided by 19, the quotient will be 72 ?
Ans. 1368 5. What number is that which being multiplied by 15, the product will be ?
6. There are 7 chests of drawers, in each of which there are 18 drawers, and in each of these there are six divisions, in each of which is 161. 6s. 8d.; how much money is there in the whole ?
Ans. £ 12348. 7. Bought 36 pipes of wine for 4536 dollars; how must I sell it a pipe to save one for my own use, and sell the rest for what the whole cost? Ans. $129, 60cts. 8. Just 16 yards of German serge,
For 90 dimes had I;
Will 14 eagles buy? Ans. 248yds. Sqrs. 2 na. 9. A certain quantity of pasture will last 963 sheep 7 weeks, how many must be turned out that it will last the remainder 9 weeks ?
Ans. 214. 10. A grocer bought an equal quantity of sugar, tea, and coffee, for 740 dollars; he gave 10 cents per lv. for the sugar, 60 cts. per lb. for the tea, and 20 cts. per lb. for the coffee ; required the quantity of each?
Ans. 8221b. 3oz. 8 dr. 11. Bought cloth at 814 a yard, and lost 25 per cent how was it sold a yard ?
Ans. 93 cts. 12. The third part of an army was killed, the fourth part taken prisoners, and 1000 fled; how many were in this
killed, and how many captives? Ans. 2400 in the army, 800 killed, and
600 taken prisoners. 13. Thomas sold 150 pine apples at 33} cents a piece, and received as much money as Harry received for a certain number of water-mellons, which he sold at 25 cents a piece; how much money did each receive, and how many,
mellons had Harry ? Ans. Each received 850, and Harry sold 200 mellons. 14. Said John to Dick, my purse and money are worth 91. 2s. but the money is twenty-five times as much as the parse; I demand how much money was in it ?
Ans. £8 15s.