Some Interest Factors

The author presents a brief summary of the sinking-fund premise for valuing expected future incomes, and then sets forth in detail what may be called the compound-interest premise of valuation which is frequently encountered in forest finance. This latter premise is perhaps more widely known than the sinking-fund premise, as it is the basis for the usual amortizing mortgage, so commonly used today to finance home-building. A table of factors, which permits the ready solution of a number of calculations involving the use of interest by simple arithmetic means, is appended.