White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-09-03

becomes ss.15. b. the time your
dollar has been a. interest forty
years at this rate. i has grown out
OF all recognition. It has nov be-
come s1o.2s.
When money is compounded pro-
gresslYely-that Is. When a given
amount Is added each yearlEhe re-
suit Is amazing. II you put 81 in
a bank each rear al our per cent
compounded interest. in ten years
you have sI24s; n fifteen years
s1e.o2: in twenty years ss0.ss: in
twenty-five years. s43.31; in thirty
years s55.os: in thirty-hye years
s76.5e; and in forty years you have
sss.S2. Thus the $40 that you
have contributed. a dollar a year.
has become nearly 500. At five
per cent. a year deposit of 81 will
bring you $500 in ten years. s33.71
in twenty years; s6s-7s in thirty
years. and n forty years your av-
ings will be s126.s4. Compounded
al six per cent. your yearly dollar
will amout in ten. twenty and forty
years TO these sums respectively:
1897. s3s.es. $3.50 and s164.O4.
Suppose you save daily the price Of
a cigar-ten cents That amounts
to s. a month. or $50 a year. At
four per cent compound interest.
such a saving would amount in ten
years I s44s.2S; in twenty years to
s1.1145s; in thirty years 10 s2,-I
0ss52. and in forty years TO 3d.
557.52.
By saving 81 a week. which is a
trife less than fifteen cents a day.
you would have at the end of ten
years ~ss4S.ss; at the End OF twenty
years s1.609.92; al the end Of thirty
years s3.O32.s4. and in forty years
s~5.13s.s4.
Could the householder save s. a
week. or $3.50 a year. his savings
would in ten years amour TO So
244.so; in twenty years 10 s~s.049.60
in thirty years to si5.1s3.20. and in
forty years they would hzve reach
ed the splendid total OF s25.692.2O
The same sum compounded at FIVE
per cent. would mount in forty
years TO ~s32.s7s.4O. while put out
at six per cent. compound interest.
this saving Of S. a week would bring
the owner in forty years the sum of
~s42.s50.4O.
When it TO putting his ac-
c~umulations into securities. the in
weston has tour things to consider.
viz. safety. rate Of income. perman-
ency Of investment. and convertible
~. The greatest Of these. of course.
is safety. The rate of interest
should be the highest consistent with
safety. The term of the invest
menis at advantageous prices may
not always be obtainable. As for
conyertibility. you should always
bear in mind that proyerbial rainy
days when there ome a sudden call
for money. Some securities which
might be entirely satisfactory in
other respects. would prove difficult
10 sell. whereas others could be
readily disposed of at any time.
Each of these desirable qualities can
be secured only at a sacrafiee Of
some of the others; so that the selec-
ton of your securities becomes a
matter of compromise. a striking of
a balance. A local manufacturing
stock might yield twelve per cent,
for instance. but be difficult TO sell.
A government bond. on the other
hand. might bring but three per
cent, but would always be salable.
A railroad bond might bring four
per cent, but the money is invested
perhaps for fifty years. whereas a
short term II may yield six per
cert, but il carries with il the neces-
sity of reinYestment in three or four
years. Perhaps the best wa to
solve these difficulties is to scatter
your investments among diversified
securities, being careful always as
to the safety of the principal.