Vin 
CONTENTS 
Analysis of Individual Statistical Series 50 
Graph Showing Pig Iron Production in 
United States 50 
Secular Trend is Steady Trend 51 
Secular Trend of a Business Series Either 
Up or Down 52 
Seasonal Variations 52 
Cyclical Fluctuations 53 
Other Factors Affecting Fluctuations in 
a Business Series 53 
Method of Analyzing Economic Fluctu 
ations 53 
Sources of Statistical Data Relating to 
Business Conditions 54 
Certain Statistical Series Which Reflect 
Business Conditions 55 
Composite Index Numbers of Business 
Activity 58 
Federal Reserve Board’s Index of Pro 
duction 59 
Index Numbers of Business Compiled 
by U. 8. Department of Commerce. . 61 
Business Forecasting; Private Agencies. 61 
Babson’s Statistical Organization 61 
Brookmire Economic Service 62 
Harvard Economic Service 62 
The Control of the Individual Busi 
ness Enterprise During the 
Business Cycle 
Effect of Cyclical Changes in Industrial 
Business 65 
Preventive and Relief Measures for Pe 
riodic Fluctuations 66 
Minimizing Effects of Business Cycle. . 66 
Regulation of Inventories in Different 
Periods of Cycle 67 
Credit Policy in Different Periods of 
^ Cycle 60 
Relief Measures 69 
A Program for Fixed Investments 6s> 
Retail Merchant and the Business Cycle 70 
Retailer’s Specific Remedies 70 
Necessity of Long Range Planning . ... 71 
SECTION 2—MATHEMATICS OF FINANCE 
PAGE 
Interest 
Computation of Interest 75 
Methods of Computing Days 75 
Computing Exact Interest by Table 
and Formula 76 
4%, 5%, 6% Exact Interest Tables..77-79 
Short-Cut Computation of Ordinary 
Interest at 6% 80 
Adjusting Interest Computation from 
360- to 365-Day Basis 80 
Short-Cut Interest Computation When 
Rate Differs from 6% 80 
Interest Computations on Government 
Securities 81 
Partial Payments Plans 82 
Bank Interest on Daily Balances 83 
One-Day Interest Table 84 
Days Computed in Discount 84 
Due Dates Falling on Sunday or Legal 
Holidays 84 
Computing Proceeds and Discount on 
Discounted Paper 84 
Chain Discounts 85 
Table of Equivalents for Chain Dis 
counts 85 
Anticipation Rates and Percentages 
(Tables) 87. 88 
Compound Amount and Compound In 
terest 88 
General Formula for Compound In 
terest go 
Compound Discount go 
Tables for Compound Amount 91-94 
Tables for Present Value 95-98 
Annuities 
Formulas 99 
Tables of Amount of an Annuity . . i 00-103 
Present Value of an Annuity (Tables) 
104-107 
PAGE 
Annuity $1 Will Buy 108 
Formula 108 
Tables of Annuity SI Will Buy...! 109-112 
Si nking Fund Calculations 113 
Purpose of Sinking Fund 113 
Formula for Sinking Fund Factor. ... 113 
Illustrations of Sinking Fund Problems 113 
Sinking Funds for Callable Bonds. ... 114 
Bond Calculations 
Classification of Bonds Based on Re 
tirement 115 
Premium and Discount 115 
Nominal and Effective Interest Rates. 115 
Price to be Paid for Bond 115 
Bond Tables Explained 116-121 
Bonds Purchased Between Interest 
Dates 122 
Averages 
Types of Averages 125 
Simple Average 125 
Weighted Average 126 
Moving Average 126 
Progressive Average 126 
Averaging Accounts 127 
Equated Date 128 
Focal Date 128 
Illustrations of Averaging Accounts... 128 
Rules for Averaging Account 128 
Logarithms 
Exponents 130 
Basis 130 
Characteristic and Mantissa 131 
Logarithmic Tables 132-133 
Illustration for Use of Tables 134