Book may have numerous typos, missing text, images, or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1889. Excerpt: ... CHAPTER XXXVIII. MONTHLY PAYMENTS. CALCULATIONS ON A LONG-TIME PLAN. PURCHASE ON A RENTAL BASIS. HOW IT MAY BE WORKED OUT. IT is a pleasant thought that every one can own a home of his own. With only a moderate salary, and little or nothing ahead, a thought of this kind may appear more pleasant than real. It may be affirmed, however, that, with few exceptions, any one who can pay rent may own his home. This will require certain sacrifices and at first great economy, but in the end the result justifies the means. There is no reason why any one should pay rent. Building associations are instrumental in securing more homes for people on a long-time plan than any other scheme. In the large towns, however, houses are sold on various kinds of instalment plans. By way of illustration, the writer calls to mind a five-room house, pleasantly situated, which was built about three years ago. This house is being paid for in instalments of $15 a month. An arrangement of this kind is good for all concerned. It is an easy way for one to get a home. It is a good use of money, from a business standpoint, for the one who has the money to invest. A little demonstration will make this plain. The lot on which the house was situated was valued at $400. The house, with walks, well, cistern, and outbuildings, cost $900. Here is a total investment of $1,300. The purchaser paid $300 in cash. There remained $1,000 unpaid. The interest on $ 1,000 for a year at six per cent is $60; but as the volume of interest is reduced as the payments are made, the actual interest for the full period averages about one-half of $60, or $30, per year. To make this point clear, I will state it in another way. The principal is being reduced as the monthly payments are made. As the payments advance, the amount of interest necessar...