CO129-264 - Governor Sir Robinson & Public Offices - 1894 [9-12] — Page 657

:

652

balance.

5. The whole transaction works out as follows on the

basis of a 3 per cent rate for the Capitalisation of Savings

and the investment of Sinking Funds.

Debenture' Debt

£200,000

To be redeemed by appropriation of

Sinking Fund accumulation

58,600

Amount to be raised by conversion

or sale of Stock

400

Annual charges on this Stock

Interest at 3 per cent

Sinking Fund at 1 per cent

£ 4,949 for 49 years )

1,414 (commencing 2

years hence.)

L

6,363

Annual charges on the Debenture Loan

Interest at 4 per cent

Sinking Fund

£

8,000 for 13 years )

7,072

£ 15,072

(a)

(b)

(c)

The savings effected by the operation will be

Saving of £3,051 (£8,000 £4,949 ) a year)

for 13 years, capitalised @ 3 per cent.

Saving of Debenture Sinking Fund Contribu-

tion of £7,072 a year for 2 years, accumul-

lating for 11 years @ 3 per cent.

Saving as between Stock and Debenture

Sinking Fund Contribution, £5,658 a year

£ 47.650

£ 19,872

£ 72,466

( £7,072 £1,414) for 11 years, capital-

ised at 3 per cent.

Total Saving at end of 13 years

£139,

988.

But the charges on the £141,400 of 3 per cent Stock

(3.)

created