9020 | 8th " 9.2337
4th " 8.1484 | 9th " 9.5334
5th " 8.4034 | 10th " 9.8430
The present value of all these contributions is found to be, at 4 per
cent. interest, $71.6394; in other words, this sum paid at the outset,
provides a fund from which we may deduct the current expenses of each
year in advance, and by accumulating the balance at the assumed rate
of interest from year to year, we shall have enough to pay the
anticipated expenses, leaving nothing over.
In the above case the sums in hand at the beginning of the year are as
follows:
1st year $71.3694 | 6th year $42.6981
2d " 66.7669 | 7th " 35.3890
3d " 61.4650 | 8th " 27.5009
4th " 55.7055 | 9th " 18.9979
5th " 49.4594 | 10th " 9.8430
We find a somewhat different condition existing during the first years
of a 5-year endowment policy. As there is more insurance and less
banking, the requirements are as follows:
------------+----------+-----------+--------+---------+
| 1 P. Ct. | 20 P. Ct. | | |
| on | on | Total.
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