276 THE FISCAL PROBLEM IN MISSOURI 
£50,000 or $100,000, without destroying the uniformity 
provided in the table to any great extent. Also, as a practi- 
cal matter, it might be desirable to adjust the interest rate 
according to maturity; and, if this were done, the interest 
payments would not decline by the exact amounts as indi- 
cated. A uniform interest rate of 415%, or some lower rate, 
could be used on the theory that the shorter maturities would 
no doubt sell at a discount and that the longer maturities 
would sell at a premium that would at least compensate for 
the discount. 
Under no circumstances should it be assumed that $40 
million obtained from the sale of bonds is comparable to $40 
million collected in equal installments over a period of years. 
Let us assume that $4 million will be collected each year for 
ten years, the first installment coming due one year hence. 
The present value of the ten amounts of $4 million each 
assuming interest compounded at the end of each year at a 
rate of 424%, is $31,650,873. It is the latter amount that is 
comparable with $40 million collectible in ten installments as 
indicated. Using the same assumptions as to interest and the 
time the first installment came due, there would have to be 
collected a total of $50,551,528 in ten annual payments in 
order that a present value of $40 million might be obtained. 
The differences between these amounts are significant in that 
they should prevent anyone from assuming that $40 million 
received from the sale of bonds is comparable to the same 
amount spread over a period of time in equal annual install- 
ments.