8/109 THE AMOUNT OF INCREASE IS PROPORTIONAL TO THE THING INCREASED. Whatever be the rate of interest,--whether it rise to three, five, or ten per cent., or fall to one-half, one-fourth, one-tenth,--it does not matter; the law of increase remains the same. The law is as follows:-- All capital--the cash value of which can be estimated--may be considered as a term in an arithmetical series which progresses in the ratio of one hundred, and the revenue yielded by this capital as the corresponding term of another arithmetical series which progresses in a ratio equal to the rate of interest. Thus, a capital of five hundred francs being the fifth term of the arithmetical progression whose ratio is one hundred, its revenue at three per cent. will be indicated by the fifth term of the arithmetical progression whose ratio is three:-- 100. |