When an amount will fall due at some future date, the present value of the debt is found by deducting discount at some rate per cent.

Mathematically we have thus in all cases to compute present value on the basis of a deferred as well as a limited annuity.

This discount, of course, is not equal to the interest which the present value would produce at that rate of interest, but is rather greater, so that the present value as calculated in this way is less than the theoretical present value.

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On the other hand, life must in the long run so conduce, whatever its present value may appear to be, because a constant process of adjustment is going on which is bound sooner or later to lead to a complete adjustment which will be perfect happiness.