The Theory of Finance: Being a Short Treatise on the Doctrine of Interest and Annuities-certain |
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The Theory of Finance: Being a Short Treatise on the Doctrine of Interest ... George King No preview available - 1882 |
Common terms and phrases
1+ni A²u₁ accumulative rate algebraical annual rent annuity payable annuity-due annum apply arithmetical mean Au₁ binomial theorem bonds borrower calculated cent Chapter coefficient column common ratio compound interest construct a table continued method convenient convertible momently correct debt deduct denoted differences Differential Calculus effective rate equal example find the value finite Finite Differences function geometrical progression given half-yearly Institute of Actuaries interest convertible interest tables intervals invested lender loan log 1+i loge means mth payment multiplying nominal rate numerical obtained ordinary annuities paid period perpetuity places of decimals present value principal outstanding purchase money quantity quarterly rate of discount rate of interest realised Redemption Money remunerative rate repaid repayable repayments result rth order simple interest Sum Due symbols table of 1+i tenth value THEORY OF FINANCE u₁ unit unity Value of Annuity vanish Varying Annuities whence yield
Popular passages
Page 33 - the remuneration for risk ' from consideration (Chap. I, para. 1). It is not quite clear whether the exclusion refers to the first chapter only or to the whole of the book, but even when Mr. King commences to consider our problem (Chap. II, para. 40} he states it as follows : 'It sometimes happens that, in consideration of a terminable annuity, a lender grants an advance at a higher rate of interest than he can secure from other investments, and that he wishes to realize the higher rate on the whole...
Page 38 - II, para. 48л) so as to be applicable to all annuities, whether deferred or immediate, and states it as follows : ' And we may now consider the general question of the value of a series of payments of any amounts, to be made at any times, the value to be so calculated as to yield the purchaser the remunerative rate, i, on his whole investment throughout the longest of the periods, and to return him his capital at the accumulative rate j.
Page 17 - Such a series of equal cash payments at fixed intervals is called an annuity. The present value of an annuity is the sum of the present values of each cash flow.
Page 15 - Unless otherwise stated, the first payment of an annuity is supposed to be made at the end of the first year...
Page 73 - The last three Tables will also show the value of an annu. during any given life of ¿I, payable at the end of the first year, ¿2 at the end of the second year. ..." (6). Four pc Joint Life (one male and one female) Annu. T. for all ages ; also showing the increasing annu. (7). Sweden Joint Life Annu. T. for all ages 3, 4, 5, and 6 pc (8). One, Two, Three, and Four Joint Lives from De Moivre's hypothesis, at 2, 24, and 3, up to ю p c. "The Four Joint Live...
Page 14 - Note.—In case the strengths are given in -volume-percentage, the amounts must be in volume; if in weight-percentage, the amounts must be in weight, as in the example.
Page 71 - ... t But the crucial question why the greater amount may have a less value at the present moment, when the two products are at two points of time, is not touched. The problem of interest is one that involves a ratio between the value of the capital and the value of the interest. The fact that the value of a given number of productive agents may be the same in any one of a dozen possible uses, though in some of them very long " roundabout processes " would give enormous sums of products and in others...
Page 15 - A Life Annuity, often called simply an Annuity, is a series of payments depending on the continuance of a given life or combination of lives.
Page 80 - Theory of Finance," says that circumstances may render it necessary to modify the many formulas which he has set down, and that it may frequently happen that there is no formula given in his work which will directly meet the case in hand; but he goes on to say that the principles enunciated will remain constant, and the actuary who has fully mastered the principles will find no difficulty in adapting the formulas to special conditions. -While life interests and reversions are not offered to Canadian...