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CASE 1.

The principal, time, and rate given, to find the amount, or interest:

RULE.

Multiply the principal by the ratio involved to the time, (found either by involution, or in table II.) and the product will be the amount; from which subtract the principal, for the compound interest.

EXAMPLES.

1 What will 225 L. amount to in 3 years, at 5 per cent. per annum ?

per

1.05×1.05×1.05-1.157625 raised to the third power; then, 1.157625×225=260 L. 9 s. 3 d. 3 qrs. the Ans. 2. What will 480 L. amount to in 6 years, at 5 cent. per annum ? Ans. 643 L. 4 s. 11.0178 d. 3. What is the amount of 500 1. at 44 per cent. per annum, for 4 years? Ans. 590 L. 11 s. 5 d. 2.95+qrs. 4. What is the compound interest of a bond for 764 dollars, for 4 years and 9 months, at 6 per cent. per annum? Ans 243 dols. 61 cts +

CASE 2.
DISCOUNT,

Or, the amount, rate, and time given, to find the principal:

RULE.

Divide the amount by the ratie involved to the time.

EXAMPLES.

1. What principal must be put to interest, to amount to 260 L. 9 s. 3 d. 3 qrs. in 3 years, at 5 per cent. per annum ?

260 L. 9 s. 3 d. 3 qrs. 260.465625 1.. 1.05×1.05×1.05=1.157625 ratio raised to the 3d

power.

1.157625)260.465625(225 L. Ans.

2. What principal will amount to 547 L. 9 s. 10 d. 2.0528 qrs. in 5 years, at 4 per cent. per annum?

3. What principal will amount to 3.809 qrs. in 4 years, at 5 per cent.?

Ans. 450 L 619 L. 88. 2 d. Ans. 500 L.

An annuity is a sum of money payable yearly, half yearly, or quarterly, for a number of years, during life, or for ever; and may draw interest if it remain unpaid after it becomes duc.

Tables to facilitate the calculations of Annuities.

TABLE III. Showing the amount of 1 L. annuity.

Y. 4 per cent. 4 per cent. 5 per cent.

5 per cent. 6 per cent.

[blocks in formation]

7.898294

9.214226

10.582795

8.019152 8.142008 8.266894 9.380014 9.549109 9.721573 10.802114 11.026564 11.256259 10 12.006107 12.28821 11 13.486351 13.841179 12 15.025805 15.464032 13 16.626838 17.159913 14 18.291911 18.932109 15 20.023588 20.784054 16 21.824531 22.719337 23.657492

8.393837 7

9.897468 8

11.491316 9

12.577892 12.875354

13.180795 10

14.206787
15.917126
17.712983

14.583498

14.971643 11

16.38559

16.869942 12

18.286798

18.882138 13

[blocks in formation]

26.855084
29.063562

18 25.645413
19 27.671229
20 29.778078 31.371423 33.065954 34.868318
21 31.969202 33.783137 35.719252 37.786075

[blocks in formation]
[blocks in formation]

27 47.084214 50.711324 54.669126 58.989109
28 49.967582 53.992333 58.402583
29 52.966286| 57.423033 62.322712

30 56.084938 61.007069
31 59.328335 64.752388 70.76079

2 62.701469 68.666245
33 66.209527 72.756226 80.063771

36.833378 38.505214 40.864309

43.392291 22

[blocks in formation]

47.570645 51.113454 54.965979

59.156383 26

63.705766 27

[blocks in formation]

36 77.598314 86.163966 95.836323 106.765188 91.041344 101.628139 113.637274 96.138205 107.709546 120.887324 135.904206 38 101.464424 114.095023 128.536127 145.058458 39 40 95.025516| 107.030329| 120.799774 136.605146 154.761966 40

39 90.40915

TABLE IV.

Showing the present worth of 1L. annuity for any number of years, from 1 to 40.

4 per cent. | 44 per cent. 5 per cent. | 5 per cent. 6 per cent. Y

[blocks in formation]

10.03759

9.71225 15

13.7986

15 11.41839 10.73954 10.37965
16 11.65229 11.23401 10.83777 10.46216
17 12.16567 11.70719 11.27407 10.86461
18 12.65929 12.15999 11.68958 11.24607
19 13.13394 12.59329 12.08532 11.60765

[blocks in formation]

21 14.02916 13.40472 12.82115
22 14.45111 13.78442 13.163
23 14.85684 14.14777
24 15.24696 14.49548
25 15.62208 14.82821

9.10589 16 10.47726 17

10.8276 18

11.15811 19

[blocks in formation]
[blocks in formation]

13.48857

[blocks in formation]

14.09354

[blocks in formation]

26 15.98277 15.14661
27 16.32959 15.45130 14.64303 13.89810

14.37518 13.66250

13.00316 26

13.21053 27

28 16.66306 15.74287 14.89313 14.12142
29 16.98371 16.02189 15.14107 14.33310
30 17.29203 16.28889 15.37245
31 17.58849 16.54439 15.59281 14.72393
32 17.87355 16.78889 15.80268
33 18.14764 17.02286 16.00255
34 18.41126 17.24676 16.1929 15.23703
35 18.66461 17.46101 16.37419 15.39055
136 18.90828 17.66604 16.54685 15.53607
37 19.14258 17.86224 16.71129 15.67400
38 19.36786 18.04999 16.86789 15.80474
39 19.58448 18.22965 17.01704 15.92866
40 19.79277 18.40158 17.15909 16.04612

[blocks in formation]

14.53375

13.76483 30

13.92908/31

14.90420

14.08404 32

15.07507

14.23023 33]

14.36814 34

14.49825 35

[blocks in formation]

TABLE V.

payments.

Quarterly The construction of this table is from an algebraic theorem, given by the learned A. De Moivre, in his treatise of Annuities on Lives, which may be in words, thus:

3 1.007445 1.011181 1.008675 1.013031 1.009902 1.014877

3

4

4

5

6

6

7

1.0111261.016720

1.0123481.018559 For half yearly payments take a unit from the ratio, and from the square root of the ratio; half the quotient of the first remainder divided

1.013567 1.020395
1.014781 1.022257
1.015993 1.024055
1.017204 1.025880

by the latter, will be the tabular number.

For quarterly payments use the 4th root as above, and take one quarter of the quotient.

G

CASE 1.

The annuity, time, and rate of interest given, to find the amount.

RULE.

From the ratio involved to the time take a unit, or one, for the dividend; which divide by the ratio less one; and multiply the quotient by the annuity, for the amount or answer. Or, by Table III.

Multiply the number under the rate, and opposite to the time, by the annuity, and the product will be the amount for yearly payments.

If the payments be half yearly or quarterly, the amount for the given time, found as above, multiplied by the proper number in Table V., will be the true

amount.

EXAMPLES.

1. What will an annuity of 50 L. per annum, payable yearly, amount to in 4 years at 5 per cent.? 1.05×1.05×1.05×1.05-1=.21550625

1.05-1.05).21550625

4.310125

50

Ans. L. 215.506250=215 L. 10 s. 1 d. 2 qrs.

2. What will an annuity of 30L. per annum, payable yearly, amount to in 4 years, at 5 per cent. per annum, and what would be the respective amounts, if the payments were to be half yearly or quarterly'

Ans.

L. 130.CC04

Amount for yearly payments is L. 129.30375
for half yearly
for quarterly

L. 131.7035

3 If a salary of 35L. per annum to be pad yearly, be omitted for 6 years at 5 per cent. what is the amount? Ans. 241L. 1s. 7d. 2.5+qrs.

CASE 2.

The annuity, time, and rate given, to find the present worth:

RULE.

Divide the annuity by the ratio involved to the time, and subtract the quotient from the annuity; divide the remainder by the ratio less one, and the quotient will be the present worth: Or, by Table IV.

Multiply the number under the rate, and opposite the time by the annuity, and the product will be the present worth.

When the payments are half yearly or quarterly, multiply the present worth so found, by the proper number in Table V.

EXAMPLES.

1. What is the present worth of a pension of 30L. per annum for 5 years, at 4 per cent.?

Number from Table IV. 4.45182

Ans. 133L. 11s. 1d.

×30 annuity.

L. 133.55460

Or, 133L. 11s. 1.104d.

2. What is the present worth of 20L. a year for 6 years, payable either yearly, half yearly, or quarterly, computing at 5 per cent. per annum?

L.

Present worth for yearly payments, 101.5138

Ans.

for half yearly
for quarterly

102.7673

103.3978

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