CONTENTS. Part I. Thkory. PAGE. Chapter I. Introduction. li. Does appreciation necessarily aggravate debts? . ... i §2. Efforts to find a "just" standard i I 3. Invariability of standard not essential 3 I 4. Bearing of the rate of interest on the subject .... 3 Chapter II. One year contracts. I I. Foreseen and unforeseen appreciation or depreciation, 6 I 2. One year contract, numerical illustration 6 I 3. Formula connecting interest and appreciation .... 8 §4. Money as standard and as medium 11 Chapter III. More than one year. I I. Confusion in separating interest and principal .... 12 I 2. Compound interest, five years 12 ? 3. General formula I3 I 4. Partial payments, seven years i4 I 5. General formula 16 I 6. Special case • ^^ Chapter IV. Present value. I I. Different modes of payment do not aflfect present value, 19 I 2. Illustration when interest is paid annually and princi- pal redeemed at maturity 20 I 3. Case of perpetual annuity 21 ^ 4. Formula ^^ Chapter V. Varying rates of appreciation. I I. Numerical illustration 23 § 2. Average rate of interest 24 ? 3. Formula for varying rate of interest 26 ^ 4. Formula for average rate of interest 26 I 5. Formula for average rate of appreciation 28 I 6. Practical application 28 Chapter VI. Zero and negative interest. I I. Limits to rates of interest and appreciation 3° I 2. Effect of hoarding 3^ I 3. Negative interest possible 32 I 4. Investment not necessarily checked by zero interest . 33
