LIFE ANNUITIES.' 
119 
To find the Value of an Annuity. 
Rule. Multiply the number of years’ purchase found by the tables, 
by the yearly sum of which the value is required *. 
Example. What is the value of an annuity of ¿£'364 to continue 
during the life of a person aged 36, assuming 4 per cent as the interest 
of money, and the rate of mortality the same as at Northampton ? 
Table 7, cf 3 6 = 13.8815 
364 
555260 
832890 
416445 
5052,8660 =¿£5052 17 4 
A man holds an estate producing ¿£56 2 6 per annum during the 
life of his wife aged 36; what is the value thereof, interest being 5 per 
cent, and the rate of mortality as at Chester ? (Probability Table 3.) 
£56 2 6 = ¿£56.125 
a 36 = 13.8345 
521.65 
691725 
83007 
1383 
277 
69 
776.461 = ¿£776 9 3. 
120. To find the Annuity which a Sum of Aloney will purchase. 
Rule. Divide the sum by the number of years’ purchase the annuity 
is worth, according to the tables. 
Example. What annuity receivable during the life of a female aged 
36 may be purchased for £776 9 3 at 5 per cent interest, Chester rate 
of mortality P (Probability Table 3.) 
(Prob. Table 3,) a 3S = 13.8345 £776 9 3 = £776.4625 
13.8345)776.4625(56.125=£56 2 6 
691725 
TsYTsTs 
830070 
1730Y 
3470 
2767 
” .703' 
* When the annuity is payable half-yearly, add - , and when payable »T times 
a-year add — to the tabular value of the annuity; in the present example 
2 m 
(13.8815 + .25)x364 is the present value when payable half-yearly, and (13.8815. 
-(-.375)X364 is the present value when payable quarterly. {Fide Baily & Milne.)