THE THEORY OF INTEREST
ing income all of his $2000 the first year, leaving no in-come for that year; likewise, all of his $1800 the second;all but $310 the third; all but $413 the fourth and all but$516 the fifth, and every succeeding year until the ninthyear. He will then turn around and use $116 from hisloans just described to eke out his $400 and bring up hisincome in that year to $516. The tenth mining item,$200, will likewise be brought up to $516 after whichhe will depend entirely on his outside loans at five percent, deriving therefrom exactly $516 every year.
The result will then be a series of income items exactlysimilar to the B, or forestry, series but each item magni-fied in the ratio of $9110 to $8820, the present valuesrespectively of C and B.
The following table exhibits these operations:
Table 4
Miming and Forestry Use Compared
OwnerReceivesfrom Mine
Of WhichHe Lends
Leavingfor RealIncome
As AgainstWhich theForestry UseWould HaveYielded
1st year .
82000
$2000
$000
$000
2nd year.
1800
1800
000
000
3rd year .
1600
1290
310
300
4th year .
1400
987
413
400
5th year .
1200
684
516
500
6th year .
1000
484
516
500
7th year .
800
284
516
500
8th year .
600
84
516
500
9th year .
400
—116
516
500
10th year .
200
—316
516
500
11th year .
000
—516
516
500
etc.
etc.
etc.
etc.
etc.
Since, therefore, any time shape may be transformedinto any other time shape, nobody need be deterred fromselecting an income because of its time shape, but every-
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