TADLES 
EXPLANATION OF TABLE 29 
TEE ANNUITY WHICH ONE DOLLAR WILL PURCHASE 
The annuity receivable at the end of each year which $1 
will purchase is noted in Table 29. 
This table contains the reciprocals of the numbers appearing 
in Table 28. It is based on the following formula: 
Let a," represent the annuity receivable at the end of each 
year which $1 will buy for # years. 
Let n represent any number of years, the term of the 
annuity. 
Let 7 represent the rate of interest expressed decimally; 
thus for 5 per cent, 7 = 0.05. 
Then: i (1 + 7)" fac) 
” (x +32) — 1" 
And by reference to equations ( 19) and (22) 
wir 4 5 
In other words the annuity receivable at the end of each year 
which $1 will buy for # years is the amount of $1 at compound 
interest divided by the amount of an annuity of $1 in » years. 
The annuity which $1 will purchase for any number of years 
is, therefore, ascertainable from Tables 22 and 26 by dividing 
the amount of $1 at compound interest found in Table 22, by 
the amount of an annuity of $1 found in Table 26. 
Example. — What annuity for 20 years can be purchased for 
$500 at 5 per cent interest? 
The amount of $1 at per cent compound interest for 20 
years in Table 22 is found to be $2.653208. The amount of an 
annuity of $1 for 20 years at 5 per cent interest, as found in 
Table 26, is $33.06505; consequently the annuity which $1 will 
purchase for 20 years at 5 per cent is 
2.653208 + 33.06505 = 0.0802426. 
And the annuity which can be purchased for $500 will be 
0.0802426 X 500 = $40.12. 
~ 13}. 403 
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