,,04

VALUATION
OF
PROPERTY.
Book TV.
tinning /. years, it
will be worth a
+ (l^}a +
C^fa
+ (l^fa
+
q^)*a
+ C?^)",!,
which
is a
gfometrical
progression whose sum is to be found. We have therefore only to multiply
the last term by the exponent, the product
whereof is (p)"
a, then subtract the first term,
and the remainder is
(llf^^aa.
Lastly, dividing by the exponent minus
1,
that is,
5',,
or, which is the same, multiplying by-21,
we have the sum requirtd, = -21(|?)""^^a
+
2la,
or 21a

2l"''''a, the value of which second term is easily calculated by logarithms.

CHAP. IV.
COMPOUND
INTEREST AND ANNUITY TABLES.
As the architect is often called on to value propertv, we here add some practical obser-
vations on tlie subject, and a set of Tal)les for the ready calculation of such matters, which
we sliall at once explain.
Table First contains the amount of II. put out to accumulate at compound interest for
any niimbtr of years up to 100, at the several rates of ;3, 4, 5, 6, 7,
and 8 per cent. Tlie
amount of any other sum is found by multiplying the amount of 11 found in the table at
the given rate per cent., and for ti)e given time, by the pro osed sum.
Example :

Required the amount of 755/. in 51 years, at 5 per cent.

Amount of 1/. for 51 years, at 5 per cent, is _
- - -
12-040769
Given sum
.._--..--.
755
or 9090/. 15s. 7{^d. 9080780595
Table Second contains the present value of 1/. payable at t'eend of any number of years
up to 100. Tlie present value of any given sum payable at tlie expiration of any number
of years is found by multiplying the present value of 1/. for the given number of years, at
the proposed rate per cent., by the given sum or jirincipal.
Example: Required the present value of 9090i payable 51 years hence, compound
interest being allowed at 5 per cent.
By the table, the present value c-f li payable at the expiration of
."^1 years at 5 per cent, is -083051
Given principal
.....----
9090
or 754/. ISs. l^%d. 754-933590
Table Thirp contains the amount of an annuity of 1/. for any number of years, and
U
thus used. Take out the amount of 1'. answering to the given time and rate of interest 1
this multiplied by the given annuity will be the required amount.
Example : Required the amount of an annuity of 27/. in 21 years, at 5 per cent, com-:
pound interest.
Annuity of 1/. in 21 years at 5 per cent. -
- - - .
35-719251
Annuity given
...-.----
27
or 964/. 85.
4/^^^.
964-419777
Table Fourth shows the present value of an annuity of 1/. for any number of years, at
3, 4, 5, 6, 7, and 8 per cent., and is used as follows:

First, when the annuity commences immediately. IVIultiply. the tabnlar number answer-
ing to the given years and rate of interest by the given annuity, and the product will be the
value required. (This table provides for the percentage and to get back the principal.)
Example:Required the present value of an annuity of 45/., which is to continue 48
years, at the rate of 5 per cent.
Under 5 and opposite to 48 years is (years' purchase)
- -
18-077157
Annuity given
._.......
45
or 813/. 9s. 5,','/. 813-472065
Second, whpn the annuity does not commence till after a certain number of years. Mul-
tiply the difference between the tabular numbers answering to the time of commencement
and end, at the proposed rate of interest, by the given annuity, the product will be ilic
present value required.