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 practical
 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 indicated.
 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 installments.