FIRST APPROXIMATION

CHART 5

Effect of Borrowing Upon Present and Future Income.

tion several times he can evidently produce almost anyrequired conformation of his income stream.

If, instead of borrowing, he wishes to lend (Chart 6)he surrenders from his present income stream the amountX' for the sake of the larger amount X" at a later time.After the operations are completed and the final con-formations of the income streams are determined, the

CHART 6

Effect of Lending Upon Present and Future Income.

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