MONEY AND INTEREST.

South Canterbury Times, Issue 2145, 5 February 1880, Page 3

MONEY AND INTEREST.

Notwithstanding the abhorrence which many men entertain for figures on account of their being prosaic, and to the non-mathematical mind perfectly bewildering, yet frequently most interesting results are evolved, In the Supreme Court recently a witness gave some sui’prising figures with respect t(fi the manipulation of a sum of £I,OOO. The question at issue, broadly stated, was one as to whether a plaintiff should receive £I,OOO at once*, or simply an amount which would be equi valient, by means of compound interest, to £I,OOO at the end of forty years. The witness, in his evidence, made the following statements, which are, we believe, based on an indisputable mathematical authority:—£4-0 at 8 per cent., £97 3s at 9 per cent, or £142 at 5 per cent., would all be cquivolant to £I,OOO at the end of forty years. If £I,OOO were paid now it would be equal at the end of forty years, at 8 per cent., to £21,742 10s; at 0 per cent., to £10,285 14s; at 5 percent., to £7,039 18s. At the conclusion of the witness’s evidence one of the counsel engaged somewhat sarcastically remarked that, if a penny had been invested at an early stage of the world’s history, the proceeds at the present day would have outweighed “ the cloud capp’d towers, the gorgeous palaces, the solemn temples, the groat globe itself.” —“ New Zealander.”