The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Capital and income

Collection:: Economics Books

Sec. 8] VALUE OF CAPITAL 207 cessive vertical lines, four units in height, each representing $4, and situated one unit of time apart.’ If the annuity is “deferred,” i.e. does not begin till some 1] future time, its present value is the discounted value of — slg [3 $4. 14. HM Fia. 2. that value it will possess when it does begin. Thus, in- terest being four per cent, while $100 is the value of a $4 annuity beginning to-day (by which, as we have seen, is meant that its first installment falls due one year from to-day), the present value of an annuity deferred one year later will be only 1 or $96.15, and the present value of an annuity deferred five years is 2, or $92.46. The value of the annuity at any time before its inception at the point A is shown by the height at any point of the discount curve through A. In the preceding posed to accrue in installm successive vertical lines. posed to flow continuously, sent it by an area. In the “area e effect of reckoning interest for dif- X111,54 discussion, the income, which is sup- ents, is represented by separate But when the income is sup- it becomes necessary to repre- »” method, time is still 1 For further discussion of the ferent time-intervals, see Appendix to Chap.

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