Annuity Management in the Eighteenth Century

Reviews the basic mathematics of reversionary annuity pricing and valuation, and then offers some theoretical multiples or contribution rates that should have been charged to participants in the 1744 scheme for widows and orphans. The chapter then goes on to analyse how the money and contributions to the scheme were invested and managed over time. It reviews the financial statements for the first decade, and in particular the charge-and-discharge reports. The key qualitative insight offered here is the evidence of the discretion and control exercised by the trustees. The chapter then focuses on the interest rates charged to borrowers from the fund and the rates earned by the schemes. It moves on to discuss the French theologian, pastor, and reformer John Calvin and his views on Protestant ministers becoming money-lenders. It concludes by offering sources for additional reading and references.