v 
DEFERRED ANNUITIES. 
65 
100. To find the value of a Perpetuity. 
Multiply the perpetuity by 100 and divide by the rate per cent. 
Example. A person is about to purchase a freehold estate producing 
¿£90 per annum, what sum should he give to allow him 4 per cent interest 
for his money ? 
The annuity 90 
multiplied by 100 
gives 9000 
which divided by the rate per cent, gives 
9000 
4 
= ¿£2250. 
101. To find the present value of a Deferred Perpetuity. 
Multiply the present value of £l due at the end of as many years 
as the perpetuity is deferred, by the perpetuity and by 100, and divide 
by the rate per cent. 
Example. A holds a freehold estate producing £300 per annum, on 
which he has granted a lease which has 10 years to run, what sum 
ought B to give him to come into possession of the estate at the end 
of that time so as to receive 5 per cent interest for his money ? 
In Table 4 under 5 per cent opposite 10 years, } „ 
we find *.....) 
this multiplied by 300 x 100 = 30000 
gives 18417.39 ' 
which divided by 5, gives 3683.478 — 
£3683 9 7.