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B 10
Annuity Notes
Plan Annots
1. Value &c
[8]
What the interest
proposed to be allowed
falls short of the precise
rate of 3 per Cent
per annum —
[8] [Willson a . trifle] Two of the proposed The denominated
value of two of the proposed Notes is
£12.12s. the yearly interest of the two, at a farthing
a day, comes to 7s 7d 1/4: at 3 per Cent per
annum, the principal of which a farthing a day
or 7s 7d 1/4 a year is the interest is — not exactly
£12:12s, but a trifle more, viz: £12:13s:5d 1/4: 2 2/3f
Upon the proposed posting the principal received will
not be so much as the principal of a farthing per
day by 1s:5d:2 2/3f: but on the other hand, striking
of the 1d:1f a year to make even money, and
to help defray the charges of management, the interest
paid fails of being equal to a farthing a day
by that amount. The quantity of interest forborn struck off
to be paid is something more than adequate to the
quantity of principal forborn struck off to be received: the
principal corresponding at 3 per Cent per annum is the
quantity of interest struck off being (viz: 1d:1f)
being 166 2/3 farthings = 3s:5d:2 2/3f: while the
quantity of principal struck off is but 1s:5d:2 2/3f.
The Two shillings then being the amount of principal struck off over and above
what corresponds to the amount of interest struck
off, at £12.12s the two Annuity Notes together
are issued at 2s more than what at 3 per cent
is their precise value: consequently each one of
them is issued at 1s above its value; so that
though valued at £6.6s it wants 1s of being is at 3 per cent above
adequate to the Annuity the full purchase price of is at 3 per cent, sold for 1s more
than the precise worth of the Annuity granted by in
return for it.