MAJOR TEST

FACULTY: ENGINEERING AND BUILT ENVIRONMENT

DEPARTMENT: CONSTRUCTION MANAGEMENT & QUANTITY SURVEYING

COURSE: CONSTRUCTION ECONOMICS 3 – CECCOY3

LECTURER: L.M AGHIMIEN

MODERATOR: M NDOU

DATE: 03 NOVEMBER 2020

DURATION: 2 HOURS: 30 MINUTES

MARKS: 75

INSTRUCTIONS
Write your Surname, Initials and student number on the test answer sheet
Write neatly and systematically.
Show all calculations.
SUBMISSION OF TEST ANSWER SHEET
Save the scanned document with your Surname, Initials and student number. Eg; Vilakazi X
216809001
Scan and submit test answer sheet within 15 minutes after the test time has ended, (12:30 –
12:45) on WhatsApp.
Email test answer sheet to [email protected] by 13:00, (03 November 2020).
Early submission of test answer sheet is allowed.
Question 01
The attached Figure 01 shows a block of six unit factories with an office in each unit. Using the
cube method estimate the cost for the proposed new building. Use a historical cube rate of R 2
539.00 and the attached historical office building cost data.
[25]
Question 02
Give a broad concept of what you understand under the term “value management”
[10]
Question 03
Life cycle costing is not only applicable to the building industry, but as a generic concept it can
be applied in many industries. According to NATO (2009) a life cycle cost estimate is the single
best metric for measuring the value for money of defense resources. Hence, discuss why the
South Africa government should do life cycle costing for all its projects.
[20]
Question 04
State what you understand by: Future value and Present value?
[6]
Question 05
A developer is expecting to have to replace various mechanical and engineering services in a
shopping mall in 5 years’ time. He wishes to know what sum he should invest at the end of each
year if the rate of interest obtainable is 7.5% and the estimated cost of the replacement is R610
000. Check your answer using the amount of R1 per annum table.
[8]
Question 06
A building client wishes to compare the cost of purchasing one type of roof installation costing
R20 000, having 10 years life, with the other having the same life length but costing R10,000
installation and R5,000 per annum for service and replacement of certain components. It is
necessary to calculate the present value of the two installations for comparison purposes. Interest
is taken @ 8% .
[6]

Total: 75
HISTORICAL OFFICE BUILDING: COST DATA

Mass earthworks to create platforms R 75,000.00

Storm water drainage systems R 40,000.00
Pavement for parking R 95,000.00
Concrete palisade boundary fence R 400,000.00
Foundations and surface bed R 435,000.00
Brickwork, facing, plaster & paint R 420,000.00
Roof construction including cladding R 340,000.00
Concrete roof R 190,000.00
Rhinoboard ceiling and brandering R 55,000.00
Suspended ceiling (conference room) R 25,000.00
Air conditioning :Workshops R 200,000.00
:Offices R 125,000.00
Electricity :Workshops R 175,000.00
:Offices R 50,000.00
Fittings :Workshops R 120,000.00
:Offices R 300,000.00
:Kitchen R 40,000.00
:Toilets R 30,000.00
Public address system (conference) R 100,000.00
Sub-total R 3,215,000.00
P&G (12%) R 385,800.00
Sub-total R 3,600,800.00
VAT (15%) R 540,120.00
TOTAL R 4,140,920.00
Figure 01

Roof Pitch 310

 APPENDIX 1: AMOUNT OF £1 TABLE

Rate per cent

Years 2 21h 3 3 112 4 4112 5

1 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500

2 1.0403 1.0506 1.0608 1.0712 1.0815 1.0920 1.1024
3 1.0612 1.0768 1.0927 1.1087 1.1248 1.1411 1.1576
4 1.0824 1.1038 1.1255 1.1475 1.1698 1.1925 1.2155
5 1.1040 1.1314 1.1592 1.1876 1.2166 1.2461 1.2762
6 1.1261 1.1596 1.1940 1.2292 1.2653 1.3022 1.3400
7 1.1486 1.1886 1.2298 1.2722 1.3159 1.3608 1.4071
8 1.1716 1.2184 1.2667 1.3168 1.3685 1.4221 1.4774
9 1.1950 1.2488 1.3047 1.3628 1.4233 1.4860 1.5513
10 1.2189 1.2800 1.3439 1.4105 1.4802 1.5529 1.6288
11 1.2433 1.3120 1.3842 1.4599 1.5394 1.6228 1.7103
12 1.2682 1.3448 1.4257 1.5110 1.6010 1.6958 1.7958
13 1.2936 1.3785 1.4685 1.5639 1.6650 1.7721 1.8856
14 1.3194 1.4129 1.5125 1.6186 1.7316 1.8519 1.9799
15 1.3458 1.4482 1.5579 1.6753 1.8009 1.9352 2.0789
16 1.3727 1.4845 1.6047 1.7339 1.8729 2.0223 2.1828
17 1.4002 1.5216 1.6528 1.7946 1.9479 2.1133 2.2920
18 1.4282 1.5596 1.7024 1.8574 2.0258 2.2084 2.4066
19 1.4568 1.5986 1.7535 1.9225 2.1068 2.3078 2.5269
20 1.4859 1.6386 1.8061 1.9897 2.1911 2.4117 2.6532
21 1.5156 1.6795 1.8602 2.0594 2.2787 2.5202 2.7859
22 1.5459 1.7215 1.9161 2.1315 2.3699 2.6336 2.9252
23 1.5768 1.7646 1.9735 2.2061 2.4647 2.7521 3.0715
24 1.6084 1.8087 2.0327 2.2833 2.5633 2.8760 3.2250
25 1.6406 1.8539 2.0937 2.3632 2.6658 3.0054 3.3863
26 1.6734 1.9002 2.1565 2.4459 2.7724 3.1406 3.5556
27 1.7068 1.9477 2.2212 2.5315 2.8833 3.2820 3.7834
28 1.7410 1.9964 2.2879 2.6201 2.9987 3.4296 3.9201
29 1.7758 2.0464 2.3565 2.7118 3.1180 3.5840 4.1161
30 1.8113 2.0975 2.4272 2.8067 3.2433 3.7453 4.3219
35 1.9998 2.3732 2.8138 3.3335 3.9460 4.6673 5.5160
40 2.2080 2.6850 3.2620 3.9592 4.8010 5.8163 7.0399
45 2.4378 3.0379 3.7815 4.7023 5.8411 7.2482 8.9850
50 2.6915 3.4371 4.3839 5.5849 7.1066 9.0326 11.4673
55 2.9717 3.8887 5.0821 6.6331 8.6463 11.2563 14.6356
60 3.2810 4.3997 5.8916 7.8780 10.5196 14.0274 18.6791
65 3.6225 4.9779 6.8299 9.3566 12.7987 17.4807 23.8398
70 3.9995 5.6321 7.9178 11.1128 15.5716 21.7841 30.4264
75 4.4158 6.3722 9.1789 13.1985 18.9452 27.1469 38.8326
80 4.8754 7.2095 10.6408 15.6757 23.0497 33.8300 49.5614
85 5.3828 8.1569 12.3357 18.6178 28.0436 42.1584 63.2543
90 5.9431 9.2288 14.3004 22.1121 34.1193 52.5371 80.7303
95 6.5616 10.4416 16.5781 26.2623 41.5113 65.4707 103.6346
100 7.2446 11.8137 19.2186 31.1914 50.5049 81.5885 131.5012

476
 Appendix 1 477

compound interest
5112 6 6112 7 7112 8 9 10

1.0550 1.0600 1.0650 1.0700 1.0750 1.0800 1.0900 1.1000

1.1130 1.1235 1.1342 1.1448 1.1556 1.1663 1.1880 1.2099
1.1742 1.1910 1.2079 1.2250 1.2422 1.2597 1.2950 1.3309
1.2388 1.2624 1.2864 1.3107 1.3354 1.3604 1.4115 1.4640
1.3069 1.3382 1.3700 1.4025 1.4356 1.4693 1.5386 1.6105
1.3788 1.4185 1.4591 1.5007 1.5433 1.5868 1.6771 1.7715
1.4546 1.5036 1.5589 1.6057 1.6590 1.7138 1.8280 1.9487
1.5346 1.5938 1.6549 1.7181 1.7834 1.8509 1.9925 2.1435
1.6190 1.6894 1.7625 1.8384 1.9172 1.9990 2.1718 2.3579
1.7081 1.7908 1.8771 1.9671 2.0610 2.1581 2.3673 2.5937
1.8020 1.8982 1.9991 2.1048 2.2156 2.3316 2.5804 2.8531
1.9012 2.0121 2.1290 2.2521 2.3817 2.5189 2.8126 3.1384
2.0057 2.1329 2.2674 2.4098 2.5604 2.7196 3.0658 3.4522
2.1160 2.2609 2.4148 2.5785 2.7524 2.9371 3.3417 3.7974
2.2324 2.3965 2.5718 2.7590 2.9588 3.1721 3.6424 4.1772
2.3552 2.5403 2.7390 2.9521 3.1807 3.4259 3.9703 4.5949
2.4848 2.6927 2.9170 3.1588 3.4193 3.7000 4.3276 5.0544
2.6214 2.8543 3.1066 3.3799 3.6758 3.9960 4.7171 5.5599
2.7656 3.0255 3.3085 3.6165 3.9514 4.3157 5.1416 6.1159
2.9177 3.2071 3.5236 3.8696 4.2478 4.6609 5.6044 6.7274
3.0782 3.3995 3.7526 4.1405 4.5664 5.0338 6.1088 7.4002
3.2475 3.6035 3.9966 4.4304 4.9089 5.4365 6.6586 8.1402
3.4261 3.8197 4.2563 4.7405 5.2770 5.8714 7.2578 8.9543
3.6145 4.0489 4.5330 5.0723 5.6728 6.3411 7.9110 9.8497
3.8133 4.2918 4.8276 5.4274 6.0983 6.8484 8.6230 10.8347
4.0231 4.5493 5.1414 5.8073 6.5557 7.3963 9.3991 11.9181
4.2444 4.8223 5.4756 6.2138 7.0473 7.9880 10.2450 13.1099
4.4778 5.1116 5.8316 6.6488 7.5759 8.6271 11.1671 14.4209
4.7241 5.4183 6.2106 7.1142 8.1441 9.3172 12.1721 15.8630
4.9839 5.7434 6.6143 7.6122 8.7549 10.0626 13.2676 17.4494
6.5138 7.6860 9.0622 10.6765 12.5688 14.7853 20.4139 28.1024
8.5133 10.2857 12.4160 14.9744 18.0442 21.7245 31.4094 45.2592
11.1265 13.7646 17.0110 21.0024 25.9048 31.9204 48.3272 72.8904
14.5419 18.4201 23.3066 29.4570 37.1897 46.9016 74.3575 117.3908
19.0057 24.6503 31.9321 41.3149 53.3906 68.9138 114.4082 189.0591
24.8397 32.9876 43.7498 57.9464 76.6492 101.2570 176.0312 304.4816
32.4645 44.1449 59.9410 81.2728 110.0398 148.7798 270.8459 490.3706
42.4299 59.0759 82.1244 113.9893 157.9764 218.6063 416.7300 789.7468
55.4542 79.0569 112.5176 159.8760 226.7956 321.2045 641.1908 1271.8952
72.4764 105.7959 154.1589 224.2343 325.5945 471.9547 986.5515 2048.4000
94.7237 141.5788 211.2110 314.5002 467.4330 693.4564 1517.9319 3298.9687
123.8002 189.4645 289.3774 441.1029 671.0605 1018.9149 2335.5264 5 313.Q221
161.8019 253.5462 396.4721 618.6696 963.3942 1497.1203 3593.4969 8556.6753
211.4686 339.3020 543.2012 867.7162 1383.0771 2199.7612 5529.0406 13780.6110
 APPENDIX 2: PRESENT VALUE OF £1 TABLE

Rate per cent

Years 2 21h 3 Jlh 4 41h 5

1 0.98039 0.97560 0.97087 0.96618 0.96153 0.95693 0.95238

2 0.96116 0.95181 0.94259 0.93351 0.92455 0.91573 0.90702
3 0.94232 0.92859 0.91514 0.90194 0.88899 0.87629 0.86383
4 0.92384 0.90595 0.88848 0.87144 0.85480 0.83856 0.82270
5 0.90573 0.88385 0.86260 0.84197 0.82192 0.80245 0.78352
6 0.88797 0.86229 0.83748 0.81350 0.79031 0.76789 0.74621
7 0.87056 0.84126 0.81309 0.78599 0.75991 0.73482 0.71068
8 0.85349 0.82074 0.78940 0.75941 0.73069 0.70318 0.67683
9 0.83675 0.80072 0.76641 0.73373 0.70258 0.67290 0.64460
10 0.82034 0.78119 0.74409 0.70891 0.67556 0.64392 0.61391
11 0.80426 0.76214 0.72242 0.68494 0.64958 0.61619 0.58467
12 0.78849 0.74355 0.70137 0.66178 0.62459 0.58966 0.55683
13 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032
14 0.75787 0.70772 0.66111 0.61778 0.57747 0.53997 0.50506
15 0.74301 0.69046 0.64186 0.59689 0.55526 0.51672 0.48101
16 0.72844 0.67362 0.62316 0.57670 0.53390 0.49446 0.45811
17 0.71416 0.65719 0.60501 0.55720 0.51337 0.47317 0.43629
18 0.70015 0.64116 0.58739 0.53836 0.49362 0.45280 0.41552
19 0.68643 0.62552 0.57028 0.52015 0.47464 0.43330 0.39573
20 0.67297 0.61027 0.55367 0.50256 0.45638 0.41464 0.37688
21 0.65977 0.59538 0.53754 0.48557 0.43383 0.39678 0.35894
22 0.64683 0.58086 0.52189 0.46915 0.42195 0.37970 0.34184
23 0.63415 0.56669 0.50669 0.45328 0.40572 0.36335 0.32557
24 0.62172 0.55287 0.49193 0.43795 0.39012 0.34770 0.31006
25 0.60953 0.53939 0.47760 0.42314 0.37511 0.33273 0.29530
26 0.59757 0.52623 0.46369 0.40883 0.36068 0.31840 0.28124
27 0.58586 0.51339 0.45018 0.39501 0.34681 0.30469 0.26784
28 0.57437 0.50087 0.43707 0.38165 0.33347 0.29157 0.25509
29 0.56311 0.48866 0.42434 0.36874 0.32065 0.27901 0.24294
30 0.55207 0.47674 0.41198 0.35627 0.30831 0.26700 0.23137
35 0.50002 0.42137 0.35538 0.29997 0.25341 0.21425 0.18129
40 0.45289 0.37243 0.30655 0.25257 0.20828 0.17192 0.14204
45 0.41019 0.32917 0.26443 0.21265 0.17119 0.13796 0.11129
50 0.37152 0.29094 0.22810 0.17905 0.14071 0.11070 0.08720
55 0.33650 0.25715 0.19676 0.15075 0.11565 0.08883 0.06832
60 0.30478 0.22728 0.16973 0.12693 0.09506 0.07128 0.05353
65 0.27605 0.20088 0.14641 0.10687 0.07813 0.05720 0.04194
70 0.25002 0.17755 0.12629 0.08998 0.06421 0.04590 0.03286
75 0.22645 0.15693 0.10894 0.07576 0.05278 0.03683 0.02575
80 0.20510 0.13870 0.09397 0.06379 0.04338 0.02955 0.02017
85 0.18577 0.12259 0.08106 0.05371 0.03565 0.02372 0.01580
90 0.16826 0.10835 0.06992 0.04522 0.02930 0.01903 0.01238
95 0.15239 0.09577 0.06032 0.03807 0.02408 0.01527 0.00970
100 0.13803 0.08464 0.05203 0.03206 0.01980 0.01225 0.00760

478
 Appendix 2 479

compound interest
5112 6 6lf2 7 7112 8 9 10

0.94786 0.94339 0.93896 0.93457 0.93023 0.92592 0.91743 0.90909

0.89845 0.88999 0.88165 0.87343 0.86533 0.85733 0.84168 0.82644
0.85161 0.83961 0.82784 0.81629 0.80496 0.79383 0.77218 0.75131
0.80721 0.79209 0.77732 0.76289 0.74880 0.73502 0.70842 0.68301
0.76513 0.74725 0.72988 0.71208 0.69655 0.68058 0.64993 0.62092
0.72524 0.70496 0.68933 0.66634 0.64796 0.63016 0.59626 0.56447
0.68743 0.66505 0.64350 0.62274 0.60275 0.58349 0.54703 0.51315
0.65159 0.62741 0.60423 0.58200 0.55070 0.54026 0.50186 0.46650
0.61762 0.59189 0.56735 0.54393 0.52158 0.50024 0.46042 0.42409
0.58543 0.55839 0.53272 0.50834 0.48519 0.46319 0.42241 0.38554
0.55491 0.52678 0.50021 0.47509 0.45134 0.42888 0.38753 0.35049
0.52598 0.49696 0.46968 0.44401 0.41985 0.39711 0.35553 0.31863
0.49856 0.46883 0.44101 0.41496 0.39056 0.36769 0.32617 0.28966
0.47256 0.44230 0.41410 0.38781 0.36331 0.34046 0.29924 0.26333
0.44793 0.41726 0.38882 0.36244 0.33796 0.31524 0.27453 0.23939
0.42458 0.39364 0.36509 0.33873 0.31438 0.29189 0.25186 0.21762
0.40244 0.37136 0.34281 0.31657 0.29245 0.27026 0.23107 0.19784
0.38146 0.35034 0.32188 0.29586 0.27204 0.25024 0.21199 0.17985
0.36157 0.33051 0.30224 0.27650 0.25306 0.23171 0.19448 0.16350
0.34272 0.31180 0.28379 0.25841 0.23541 0.21454 0.17843 0.14864
0.32486 0.29415 0.26647 0.24151 0.21898 0.19865 0.16369 0.13513
0.30792 0.27750 0.25021 0.22571 0.20371 0.18394 0.15018 0.12284
0.29187 0.26179 0.23494 0.21094 0.18949 0.17031 0.13778 0.11167
0.27665 0.24697 0.22060 0.19714 0.17627 0.15769 0.12640 0.10152
0.26223 0.23299 0.20713 0.18424 0.16397 0.14601 0.11596 0.09229
0.24856 0.21981 0.19449 0.17219 0.15253 0.13520 0.10639 0.08390
0.23560 0.20736 0.18262 0.16093 0.14189 0.12518 0.09760 0.07627
0.22332 0.19563 0.17147 0.15040 0.13199 0.11591 0.08954 0.06934
0.21167 0.18455 0.16101 0.14056 0.12278 0.10732 0.08215 0.06303
0.20064 0.17411 0.15118 0.13136 0.11422 0.09937 0.07537 0.05730
0.15351 0.13010 0.11034 0.09366 0.07956 0.06763 0.04898 0.03558
0.11746 0.09722 0.08054 0.06678 0.05541 0.04603 0.03183 0.02209
0.08987 0.07265 0.05878 0.04761 0.03860 0.03132 0.02069 0.01371
0.06876 0.05428 0.04290 0.03394 0.02688 0.02132 0.01344 0.00851
0.05261 0.04056 0.03131 0.02420 0.01872 0.01451 0.00874 0.00528
0.04025 0.03031 0.02285 0.01725 0.01304 0.00987 0.00568 0.00328
0.03080 0.02265 0.01668 0.01230 0.00908 0.00672 0.00369 0.00203
0.02356 0.01692 0.01217 0.00877 0.00633 0.00457 0.00239 0.00126
0.01803 0.01264 0.00888 0.00525 0.00440 0.00311 0.00155 0.00078
0.01379 0.00945 0.00648 0.00445 0.00307 0.00211 0.00101 0.00048
0.01055 0.00706 0.00473 0.00317 0.00213 0.00144 0.00065 0.00030
0.00807 0.00527 0.00345 0.00226 0.00149 0.00098 0.00042 0.00018
0.00618 0.00394 0.00252 0.00161 0.00103 0.00066 0.00027 0.00011
0.00472 0.00294 0.00184 0.00115 0.00072 0.00045 0.00018 0.00007
 APPENDIX 3: AMOUNT OF £1 PER ANNUM TABLE

Rate per cent

Years 2 2112 3 Jl/2 4 4112 5
1 1.000 1.000 1.000 1.000 1.000 1.000 1.200
2 2.019 2.024 2.029 2.034 2.039 2.044 1.049
3 3.060 3.075 3.090 3.106 3.121 3.137 3.152
4 4.121 4.152 4.183 4.214 4.246 4.278 4.310
5 5.204 5.256 5.309 5.362 5.416 5.470 5.525
6 6.308 6.387 6.468 6.550 6.632 6.716 6.801
7 7.434 7.547 7.662 7.779 7.898 8.019 8.142
8 8.582 8.736 8.892 9.051 9.214 9.380 9.549
9 9.754 9.954 10.159 10.368 10.582 10.802 11.026
10 10.949 10.203 11.463 11.731 12.006 12.288 12.577
11 12.168 12.483 12.807 13.141 13.486 13.841 14.206
12 13.412 13.795 14.192 14.601 15.025 15.464 15.917
13 14.680 15.140 15.617 16.113 16.626 17.159 17.712
14 15.973 16.518 17.086 17.676 18.291 18.932 19.598
15 17.293 17.931 18.598 19.295 20.023 20.784 21.578
16 18.639 19.380 20.156 20.971 21.824 22.719 23.657
17 20.012 20.864 21.761 22.705 23.697 24.741 25.840
18 21.412 22.386 23.414 24.499 25.645 26.855 28.132
19 22.840 23.946 25.116 26.357 27.671 29.063 30.539
20 24.297 25.544 26.870 28.279 29.778 31.371 33.065
21 25.783 27.183 28.676 30.269 31.969 33.783 35.719
22 27.298 28.862 30.536 32.328 34.247 36.303 38.505
23 28.844 30.584 32.452 34.460 36.617 38.937 41.430
24 30.421 32.349 34.426 36.666 39.082 41.689 44.501
25 32.030 34.157 36.459 38.949 41.645 44.565 47.727
26 33.670 36.011 38.553 41.313 44.311 47.570 51.113
27 35.344 37.911 40.709 43.759 47.084 50.711 54.669
28 37.051 39.859 42.930 46.290 49.967 53.993 58.402
29 38.792 41.856 45.218 48.910 52.966 57.423 62.322
30 40.568 43.902 47.575 51.622 56.083 61.007 66.438
35 49.994 54.928 60.462 66.674 73.652 81.496 90.320
40 60.401 67.402 75.401 84.550 95.025 107.030 120.799
45 71.892 81.516 92.719 105.781 121.029 138.849 159.700
50 84.579 97.484 112.796 130.997 152.667 178.503 209.347
55 98.586 115.550 136.071 160.946 191.159 227.917 272.712
60 114.051 135.991 163.053 196.516 237.990 289.497 353.583
65 131.126 159.118 194.332 238.762 294.968 366.237 456.797
70 149.977 185.284 230.594 288.937 364.290 461.869 588.528
75 170.791 214.888 272.630 348.529 448.631 581.044 756.653
80 193.771 248.382 321.362 419.306 551.244 729.557 971.228
85 219.143 286.278 377.856 503.367 676.090 914.632 1245.086
90 247.156 329.154 443.348 603.204 827.983 1145.268 1594.607
95 278.084 377.664 519.271 721.780 1012.784 1432.684 2040.693
100 312.232 432.548 607.287 862.611 1237.623 1790.855 2610.025

480
 Appendix 3 481

compound interest
5 112 6 6112 7 7112 8 9 10

1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

2.054 2.059 2.064 2.069 2.074 2.079 2.089 2.099
3.168 3.183 3.199 3.214 3.230 3.246 3.278 3.309
4.342 4.374 4.407 4.439 4.472 4.506 4.573 4.640
5.581 5.637 5.693 5.750 5.808 5.866 5.984 6.105
6.888 6.975 7.063 7.153 7.244 7.335 7.523 7.715
8.266 8.393 8.522 8.654 8.787 8.922 9.200 9.487
9.721 9.897 10.076 10.259 10.446 10.636 11.028 11.435
11.256 11.491 11.731 11.977 12.229 12.487 13.021 13.579
12.875 13.180 13.494 13.816 14.147 14.486 15.192 15.937
14.583 14.971 15.371 15.783 16.208 16.645 17.560 18.531
16.385 16.869 17.370 17.888 18.423 18.977 20.140 21.384
18.286 18.882 19.499 20.140 20.805 21.495 22.953 24.522
20.292 21.015 21.767 22.550 23.365 24.214 26.019 27.974
22.408 23.275 24.182 25.129 26.118 27.152 29.360 31.772
24.641 25.672 26.754 27.888 29.077 30.324 33.003 35.949
26.996 28.212 29.493 30.840 32.258 33.750 36.973 40.544
29.481 30.905 32.410 33.999 35.677 37.450 41.301 45.599
32.102 33.759 35.516 37.378 39.358 41.446 46.018 51.159
34.863 36.785 38.825 40.995 43.304 45.761 51.160 57.274
37.786 39.992 42.348 44.865 47.552 50.422 56.764 64.002
40.864 43.392 46.101 49.005 52.118 55.456 62.873 71.402
44.111 46.995 50.098 53.436 57.027 60.893 69.531 79.543
47.537 50.815 54.354 58.176 62.304 66.764 76.789 88.497
51.152 54.864 58.887 63.249 67.977 73.105 84.700 98.347
54.965 59.156 63.715 68.676 74.070 79.954 93.323 109.181
58.989 63.705 68.856 74.483 80.631 87.350 102.723 121.099
63.233 68.528 74.332 80.697 87.679 95.338 112.968 134.209
67.711 73.639 80.164 87.346 95.255 103.965 124.135 148.630
72.435 79.058 86.374 94.460 103.399 113.283 136.307 164.494
100.251 111.434 124.034 138.236 154.251 172.316 215.710 271.024
136.605 154.761 175.631 199.635 227.256 259.056 337.882 442.592
184.119 212.743 246.324 285.749 332.064 386.505 525.858 718.904
246.217 290.335 343.179 406.528 482.529 573.770 815.083 1163.908
327.377 394.172 475.879 575.928 698.542 848.923 1260.091 1880.591
433.450 533.128 657.689 813.520 1008.656 1253.213 1944.791 3034.816
572.083 719.082 906.785 1146.755 1453.865 1847.247 2998.288 4893.706
753.271 967.932 1248.068 1614.134 2093.019 2720.079 4619.223 7 887.468
990.076 1300.948 1715.655 2269.657 3 010.608 4002.556 7113.232 12 708.952
1299.571 1746.599 2356.290 3189.062 4327.926 5 886.934 10950.572 20474.000
1704.068 2342.981 3234.016 4478.575 6219.107 8655.705 16854.798 32 979.687
2232.730 3141.075 4436.576 6287.185 8934.140 12 723.936 25939.182 53120.221
2932.730 4209.103 6084.187 8823.852 12831.922 18701.503 39916.632 85556.753
3826.702 5638.367 8341.557 12381.661 18427.694 27 484.515 61422.673 137796.110
 APPENDIX 4: ANNUAL SINKING FUND TABLE

Rate per cent

Years 2 2112 3 Jl/2 4 4112 5

1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

2 0.49505 0.49382 0.49261 0.49140 0.49019 0.48899 0.48780
3 0.32675 0.32513 0.32353 0.32195 0.32034 0.31877 0.31720
4 0.24262 0.24081 0.23902 0.23725 0.23549 0.23374 0.23201
5 0.19215 0.19024 0.18835 0.18648 0.18462 0.18279 0.18097
6 0.15852 0.15654 0.15459 0.15266 0.15076 0.14867 0.14701
7 0.13451 0.13249 0.13050 0.12894 0.12660 0.12470 0.12281
8 0.11650 0.11446 0.11245 0.11047 0.10852 0.10660 0.10472
9 0.10251 0.10045 0.09843 0.09644 0.09449 0.09257 0.09069
10 0.09132 0.08925 0.08723 0.08524 0.08329 0.08137 0.07950
11 0.08217 0.08010 0.07807 0.07609 0.07414 0.07224 0.07038
12 0.07455 0.07248 0.07046 0.06848 0.06655 0.06466 0.06282
13 0.06811 0.06604 0.06402 0.06206 0.06014 0.05827 0.05645
14 0.06260 0.06053 0.05852 0.05657 0.05466 0.05292 0.05102
15 0.05782 0.05576 0.05376 0.05182 0.04994 0.04811 0.04634
16 0.05565 0.05159 0.04961 0.04768 0.04582 0.04401 0.04226
17 0.04996 0.04792 0.04595 0.04404 0.04219 0.04041 0.03869
18 0.04670 0.04467 0.04270 0.04081 0.03899 0.03723 0.03554
19 0.04378 0.04176 0.03981 0.03794 0.03613 0.03440 0.03274
20 0.04115 0.03914 0.03721 0.03536 0.03358 0.03187 0.03024
21 0.03878 0.03678 0.03487 0.03303 0.03128 0.02960 0.02799
22 0.03663 0.03464 0.03274 0.03093 0.02919 0.02754 0.02597
23 0.03460 0.03269 0.03081 0.02901 0.02730 0.02568 0.02413
24 0.03287 O.D3091 0.02904 0.02727 0.02558 0.02398 0.02247
25 0.03122 0.02927 0.02742 0.02567 0.02401 0.02243 0.02095
26 0.02969 0.02776 0.02593 0.02420 0.02256 0.02102 0.01956
27 0.02829 0.02637 0.02456 0.02285 0.02123 0.01971 0.01829
28 0.02698 0.02508 0.02329 0.02160 0.02001 0.01852 0.01712
29 0.02577 0.02389 0.02211 0.02044 0.01887 0.01741 0.01604
30 0.02464 0.02277 0.02101 0.01937 0.01783 0.01639 0.01505
35 0.02000 0.01820 0.01653 0.01499 0.01357 0.01227 0.01107
40 0.01655 0.01483 0.01326 0.01182 0.01052 0.00934 0.00827
45 0.01390 0.01226 0.01078 0.00945 0.00826 0.00720 0.00626
50 0.01182 0.01025 0.00886 0.00763 0.00655 0.00560 0.00477
55 0.01014 0.00865 0.00734 0.00621 0.00523 0.00438 0.00366
60 0.00876 0.00735 0.00613 0.00508 0.00420 0.00345 0.00282
65 0.00762 0.00628 0.00514 0.00418 0.00339 0.00273 0.00218
70 0.00666 0.00539 0.00433 0.00346 0.00274 0.00216 0.00169
75 0.00585 0.00465 0.00366 0.00286 0.00222 0.00172 0.00132
80 0.00516 0.00402 0.00311 0.00238 0.00181 0.00137 0.00102
85 0.00456 0.00349 0.00264 0.00198 0.00147 0.00109 0.00080
90 0.00404 0.00303 0.00225 0.00165 0.00120 0.00087 0.00062
95 0.00359 0.00264 0.00192 0.00138 0.00098 0.00069 0.00049
100 0.00320 0.00231 0.00164 0.00115 0.00080 0.00055 0.00038

482
 Appendix 4 483

compound interest
5112 6 6112 7 7112 8 9 10

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.48661 0.48543 0.48426 0.48309 0.48192 0.48076 0.47846 0.47619
0.31565 0.31410 0.31257 0.31105 0.30953 0.30803 0.30505 0.30211
0.23029 0.22859 0.22690 0.22522 0.22356 0.22192 0.21866 0.21547
0.17917 0.17739 0.17563 0.17389 0.17216 0.17045 0.16709 0.16379
0.14517 0.14336 0.14156 0.13979 0.13804 0.13631 0.13291 0.12960
0.12096 0.11913 0.11733 0.11555 0.11380 0.11207 0.10869 0.10540
0.10286 0.10103 0.09923 0.09746 0.09572 0.09401 0.09067 0.08744
0.08883 0.08702 0.08523 0.08348 0.08176 0.08007 0.07679 0.07364
0.07766 0.07586 0.07410 0.07237 0.07068 0.06902 0.06582 0.06274
0.06857 0.06679 0.06505 0.06335 0.06169 0.06007 0.05694 0.05396
0.06102 0.05927 0.05756 0.05590 0.05427 0.05269 0.04965 0.04676
0.05468 0.05296 0.05128 0.04965 0.04806 0.04652 0.04356 0.04077
0.04927 0.04758 0.04594 0.04434 0.04279 0.04129 0.03843 0.03574
0.04462 0.04296 0.04135 0.03979 0.03828 0.03682 0.03405 0.03147
0.04058 0.03895 0.03737 0.03585 0.03439 0.03297 0.03029 0.02781
0.03704 0.03544 0.03390 0.03242 0.03100 0.02962 0.02704 0.02466
0.03391 0.03235 0.03085 0.02941 0.02802 0.02670 0.02421 0.02193
0.03115 0.02962 0.02815 0.02675 0.02541 0.02412 0.02173 0.01954
0.02867 0.02718 0.02575 0.02439 0.02309 0.02185 0.01954 0.01745
0.02646 0.02500 0.02361 0.02228 0.02102 0.01983 0.01761 0.01562
0.02447 0.02304 0.02169 0.02040 0.01918 0.01803 0.01590 0.01400
0.02266 0.02127 0.01996 0.01871 0.01753 0.01642 0.01438 0.01257
0.02103 0.01967 0.01839 0.01718 0.01605 0.01497 0.01302 0.01129
0.01954 0.01822 0.01698 0.01581 0.01471 0.01367 0.01180 0.01016
0.01819 0.01690 0.01569 0.01456 0.01349 0.01250 0.01071 0.00915
0.01695 0.01569 0.01452 0.01342 0.01240 0.01144 0.00973 0.00825
0.01581 0.01459 0.01345 0.01239 0.01140 0.01048 0.00885 0.00745
0.01476 0.01357 0.01247 0.01144 0.01049 0.00961 0.00805 0.00672
0.01380 0.01264 0.01157 0.01058 0.00967 0.00882 0.00733 0.00607
0.00997 0.00897 0.00806 0.00723 0.00648 0.00580 0.00463 0.00368
0.00732 0.00646 0.00569 0.00500 0.00440 0.00386 0.00295 0.00225
0.00543 0.00470 0.00405 0.00349 0.00301 0.00258 0.00190 0.00139
0.00406 0.00344 0.00291 0.00245 0.00207 0.00174 0.0012::' 0.00085
0.00305 0.00253 0.00210 0.00173 0.00143 0.00117 0.00079 0.00053
0.00230 0.00187 0.00152 0.00122 0.00099 0.00079 0.00051 0.00032
0.00174 0.00139 0.00110 0.00087 0.00068 0.00054 0.00033 0.00020
0.00132 0.00103 0.00080 0.00061 0.00047 0.00036 0.00021 0.00012
0.00101 0.00076 0.00058 0.00044 0.00033 0.00024 0.00014 0.00007
0.00076 0.00057 0.00042 0.00031 0.00023 0.00016 0.00009 0.00004
0.00058 0.00042 0.00030 0.00022 0.00016 0.00011 0.00005 0.00003
0.00044 0.00031 0.00022 0.00015 0.00011 0.00007 0.00003 0.00001
0.00034 0.00023 0.00016 0.00011 0.00007 0.00005 0.00002 0.00001
0.00026 0.00017 0.00011 0.00008 0.00005 0.00003 0.00001 0.00000
 APPENDIX 5: PRESENT VALUE OF £1 PER
ANNUM OR YEARS' PURCHASE TABLE

Rate per cent

Years 2 21h 3 Jlh 4 4112 5

1 0.9803 0.9756 0.9708 0.9661 0.9615 0.9569 0.9523

2 1.9415 1.9274 1.9134 1.8996 1.8860 1.8726 1.8594
3 2.8838 2.8560 2.8286 2.8016 2.7750 2.7489 2.7232
4 3.8077 3.7619 3.7170 3.6730 3.6296 3.5875 3.5459
5 4.7134 4.6458 4.5797 4.5150 4.4518 4.3899 4.3294
6 5.6014 5.5081 5.4171 5.3285 5.2421 5.1578 5.0756
7 6.4719 6.3493 6.2302 6.1145 6.0020 5.8927 5.7863
8 7.3254 7.1701 7.0196 6.8739 6.7827 6.5958 6.4632
9 8.1622 7.9708 7.7861 7.6076 7.4353 7.2687 7.1078
10 8.9825 8.7520 8.5302 8.3166 8.1108 7.9127 7.7217
11 9.7868 9.5142 9.2326 9.0015 8.7604 8.5289 8.3064
12 10.5753 10.2577 9.9540 9.6633 9.3850 9.1185 8.8632
13 11.3483 10.9831 10.6349 10.3027 9.9856 9.6828 9.3935
14 12.1062 11.6909 11.2960 10.9205 10.5631 10.2228 9.8996
15 12.8492 12.3813 11.9379 11.5174 11.1183 10.7395 10.3796
16 13.5777 13.0550 12.5611 12.0941 11.6522 11.2340 10.8377
17 14.2918 13.7121 13.1661 12.6513 12.1656 11.7071 11.2740
18 15.9920 14.3533 13.7535 13.1896 12.6592 12.1599 11.6895
19 15.6784 14.9788 14.3237 13.7098 13.1339 12.5932 12.0853
20 16.3514 15.5891 14.8774 14.2124 13.5903 13.0079 12.4622
21 17.0112 16.1845 15.4150 14.6979 14.0291 13.4047 12.8211
22 17.6580 16.7654 15.9369 15.1671 14.4511 13.7844 13.1630
23 18.2922 17.3321 16.4436 15.6204 14.8568 14.1477 13.4885
24 18.9139 17.8849 16.9355 16.0583 15.2469 14.4954 13.7986
25 19.5234 18.4243 17.4131 16.4815 15.6220 14.8282 14.0939
26 20.1210 18.9506 17.8768 16.8903 15.9827 15.1466 14.3751
27 20.7068 19.4640 18.3270 17.2853 16.3295 15.4513 14.6430
28 21.2812 19.9648 18.7641 17.6670 16.6630 15.7428 14.8981
29 21.8443 20.4535 19.1884 18.0357 16.9837 16.0218 15.1410
30 22.3964 20.9302 19.6004 18.3920 17.2920 16.2888 15.3724
35 24.9986 23.1451 21.4872 20.0006 18.6646 17.4610 16.3741
40 27.3554 25.1027 23.1147 21.3550 19.7927 18.4015 17.1590
45 29.4901 26.8330 24.5187 22.4954 20.7200 19.1563 17.7740
50 31.4236 28.3623 25.7297 23.4556 21.4821 19.7620 18.2559
55 33.1747 29.7139 26.7744 24.2640 22.1086 20.2480 18.6334
60 34.7608 30.9086 27.6755 24.9447 22.6234 20.6380 18.9292
65 36.1974 31.9645 28.4528 25.5178 23.0466 20.9509 19.1610
70 37.4986 32.8978 29.1234 26.0003 23.3945 21.2021 19.3426
75 38.6771 33.7227 29.7018 26.4066 23.6804 21.4036 19.4849
80 39.7445 34.4518 30.2007 26.7487 23.9153 21.5653 19.5964
85 40.7112 35.0962 30.6311 27.0368 24.1085 21.6951 19.6838
90 41.5869 35.6657 31.0024 27.2793 24.2672 21.7992 19.7522
95 42.3800 36.1691 31.3226 27.4835 24.3977 21.8827 19.8058
100 43.0983 36.6141 31.5989 27.6554 24.5049 21.9498 19.8479

484
 Appendix 5 485

compound interest
5112 6 6112 7 7112 8 9 10

0.9478 0.9433 0.9389 0.9345 0.9302 0.9259 0.9174 0.9090

1.8463 1.8333 1.8206 1.8080 1.7956 1.7832 1.7591 1.7355
2.6979 2.6730 2.6484 2.6243 2.6003 2.5770 2.5312 2.4868
3.5051 3.4651 3.4257 3.3872 3.3493 3.3121 3.2397 3.1698
4.2702 4.2123 4.1556 4.1001 4.0458 3.9927 3.8896 3.7907
4.9955 4.9178 4.8410 4.7665 4.6938 4.6228 4.4859 4.3552
5.6829 5.5823 5.4845 5.3892 5.2966 5.2063 5.0329 4.8684
6.3345 6.2097 6.0887 5.9712 5.8573 5.7466 5.5348 5.3349
6.9521 6.8016 6.6561 6.5152 6.3788 6.2468 5.9952 5.7590
7.5376 7.3600 7.1888 7.0235 6.8640 6.7100 6.4176 6.1445
8.0925 7.8868 7.6890 7.4986 7.3154 7.1389 6.8051 6.4950
8.6185 8.3838 8.1587 7.9426 7.7352 7.5360 7.1607 6.8136
9.1176 8.8526 8.5997 8.3576 8.1258 7.9037 7.4869 7.1033
9.5896 9.2949 9.0138 8.7454 8.4891 8.2442 7.7861 7.3666
10.0375 9.7122 9.4026 9.1079 8.8271 8.5594 8.0606 7.6060
10.4621 10.1058 9.7677 9.4465 9.1415 8.8513 8.3125 7.8237
10.8646 10.4772 10.1105 9.7632 9.4339 9.1216 8.5436 8.0215
11.2460 10.8276 10.4324 10.0590 9.7060 9.3718 8.7556 8.2014
11.6076 11.1581 10.7347 10.3355 9.9590 9.6035 8.9501 8.3649
11.9503 11.4690 11.0185 10.5940 10.1944 9.8181 9.1285 8.5135
12.2752 11.7640 11.2849 10.8355 10.4134 10.0168 9.2922 8.6486
12.5831 12.0415 11.5351 11.0612 10.6171 10.2007 9.4424 8.7715
12.8750 12.3033 11.7701 11.2721 10.8066 10.3710 9.5802 8.8832
13.1516 12.5503 11.9907 11.4693 10.9829 10.5287 9.7066 8.9847
13.4139 12.7833 12.1978 11.6535 11.1459 10.6747 9.8225 9.0770
13.6824 13.0031 12.3923 11.8257 11.2994 10.8099 9.9289 9.1609
13.8980 13.2105 12.5749 11.9867 11.4413 10.9351 10.0265 9.2372
14.1214 13.4061 12.7464 12.1371 11.5733 11.0510 10.1161 9.3065
14.3331 13.5907 12.9074 12.2776 11.6961 11.1584 10.1982 9.3696
14.5837 13.7648 13.0586 12.4090 11.8103 11.2577 10.2736 9.4296
15.3905 14.4982 13.6869 12.9476 12.2725 11.6545 10.5668 9.6441
16.0461 15.0462 14.1455 13.3317 12.5944 11.9246 10.7573 9.7790
16.5477 15.4558 14.4802 13.6055 12.8186 12.1084 10.8811 9.8628
16.9315 15.7618 14.7246 13.8007 12.9748 12.2334 10.9616 9.9148
17.2251 15.9905 14.9028 13.9399 13.0836 12.3186 11.0139 9.9471
17.4498 16.1614 15.0329 14.0391 13.1593 12.3765 11.0479 9.9671
17.6217 16.2891 15.1279 14.1099 13.2121 12.4159 11.0700 9.9796
17.7533 16.3845 15.1972 14.1603 13.2489 12.4428 11.0844 9.9873
17.8539 16.4558 15.2478 14.1963 13.2745 12.4610 11.0937 9.9921
17.9309 16.5091 15.2848 14.2220 13.2923 12.4735 11.0998 9.9951
17.9898 16.5489 15.3117 14.2402 13.3048 12.4819 11.1037 9.9969
18.0348 16.5786 15.3314 14.2533 13.3134 12.4877 11.1063 9.9981
18.0694 16.6009 15.3458 14.2626 13.3194 12.4916 11.1080 9.9988
18.0958 16.6175 15.3562 14.2692 13.3236 12.4943 11.1091 9.9992