3. What is the interest of $240 for 6 months and 12 days, at 7 per cent.? Operation. $240 Prin. .032 Int. of $1. 480 720 6)$7.680 Int. at 6 per ct. 1.280 of 6 per ct. Ans. $8.960 Int. at 7 per ct. The interest of $1 for 6 mo. at 6 per ct., is .03; for 12 d. it is .002; and .03.002=$.032. The required rate is 1 per cent. more than 6 per cent.; we therefore find the interest at 6 per cent., and add of it to itself. 4. What is the interest of $680 for 3 mo., at 5 per cent.? 5. What is the interest of $213.08 for 1 mo., at 6 per cent.? 6. What is the interest of $859 for 1 yr. 2 mo., at 7 per cent.? 7. What is the interest of $768 for 1 yr. 7 mo., at 8 per cent.? 8. What is the interest of $684 for 9 mo., at 6 per cent.? 9. At 7 per cent., what is the amount of $387 for 5 mo.? 10. At 4 per cent., what is the amt. of $1125 for 1 yr. 2 mo.? 11. At 6 per cent., what is the amt. of $1056 for 10 mo. 24 d.? 12. At 6 per cent., what is the int. of $1340 for 1 mo. 15 d.? 13. At 6 per cent., what is the int. of $815 for 2 mo. 21 d.? 14. At 8 per cent., what is the amt. of $961 for 4 mo. 10 d.? 15. What is the int. of $2345.10 for 6 mo., at 7 per cent.? 16. What is the int. of $1567.18 for 4 mo., at 7 per cent.? 17. What is the int. of $3500 for 11 mo., at 10 per cent.? 18. What is the int. of $39.375 for 2 yrs., at 121 per cent.? 19. What is the int. of $113.61 for 5 yrs., at 15 per cent.? 20. What is the int. of $1000 for 2 yrs., at 20 per cent.? 21. What is the int. of $1260.34 for 10 yrs., at 13 per cent.? 22. At 16 per cent., what is the int. of $150 for 6 years. ? 23. At 30 per cent., what is the int. of $300 for 1 year. ? 24. What is the amt. of $12645 for 10 d., at 6 per cent.? 25. What is the amt. of $16285 for 24 d., at 7 per cent.? 26. At 4 per cent., what is the int. of $10255 for 8 months? 27. At 54 per cent., what is the int. of $17371 for 3 months? 28. What is the amt. of $1 for 100 yrs., at 7 per cent.? 29. What is the amt. of 1 cent for 100 yrs., at 6 per cent.? 410. Since the interest of $1 at 6 per cent. for 12 mo. is 6 cents, (Art. 406,) for 6 mo. it must be 3 cents; for 3 mo., 14 cents; for 2 mo., 1 cent; for 1 mo. or 30 d. cent; for 15 d., cent; for 20 d. cent, &c. That is, the interest of $1 at 6 per cent. is as many cents as are equal to half the given number of months. 411. Hence, to compute interest at 6 per cent. by months. Multiply the principal by half the number of months, and point off two more figures for decimals in the product than there are decimal places in the multiplicand. OBS. 1. When there are years and days, reduce the years to months, and the days to a common fraction of a month. Or, divide the days by 3, and annex the quotient to the months considered as hundredths; half of the number thus produced will be the decimal multiplier. 2. The latter method is the same as dividing the days by 6, and setting the fi зt quotient figure in thousandth's place; for, we divide the days by 3 and 2, and 3X2=6. (Arts. 407, 408.) 30. What is the int. of $460.384 for 8 mos. and 15 d., at 6 per ct. ? 31. What is the interest of $780 for 4 months, at 6 per cent.? 32. What is the interest of $1406 for 3 mo., at 6 per cent.? 33. What is the interest of $109 for 2 mo., at 7 per cent.? 34. What is the interest of $119.45 for 8 mo., at 6 per cent.? 35. What is the interest of $618 for 1 yr. 3 mo., at 6 per cent.? 36. What is the interest of $861 for 2 yrs. 6 mo., at 6 per cent.? 37. What is the interest of $936.40 for 3 yrs., at 6 per cent.? 38. What is the interest of $4526 for 6 mo. 2 d., at 6 per cent.? 39. What is the interest of $8246 for 10 mo., at 7 per cent.? 40. What is the interest of $31285 for 3 mo., at 5 per cent.? 41. What is the interest of $17500 for 1 yr. 3 mo., at 7 per ct.? 42. What is the amount of $3286 for 8 mo. 15 d., at 6 per ct.? 43. What is the amount of $15876 for 5 mo. 18 d., at 6 per ct.? 412. We have seen that the interest of $1 at 6 per cent. for any number of days is equal to as many mills, as 6 is contained times in the given days. (Art. 407.) Hence, 413. To compute interest at 6 per cent. by days. Multiply the principal by one sixth of the given number of days, and point off three more figures for decimals in the product than there are decimal places in the principal. (Art. 411. Obs. 2.) Or, multiply the principal by the given number of days, divide the product by 6, and point off the quotient as above. OBS. The product is in mills and parts of a mill. The object, therefore, of pointing off three more places for decimals in the product than there are decimals in the principal, is to reduce it to dollars. (Art. 372.) 44. What is the interest of $976.22 for 33 days, at 6 per cent.? Solution. of 33 d.=54; and $976.22×5=5369.21 mills. Pointing off 3 more decimals, we have $5.36921. Ans. 45. What is the interest of $536.30 for 24 days, at 6 per cent. ? 46. What is the interest of $7085 for 63 d., at 6 per cent.? 47. What is the interest of $8126.21 for 8 d., at 6 per cent.? 48. What is the interest of $25681 for 93 d., at 6 per cent.? 49. What is the interest of $764.85 for 114 d., at 6 per cent.? APPLICATIONS OF INTEREST. 414. In the application of interest to business transactions, the following particulars deserve attention. 1. A promissory note is a writing which contains a promise of the payment of money or other property to another, at or before a time specified, in consideration of value received by the promiser or maker of the note. Unless a note contains the words "value received," by some authorities it is deemed invalid; consequently these words should always be inserted. 2. The person who signs a note is called the maker, drawer, or giver of the note. The person to whom a note is made payable, is called the payee; the person who has the legal possession of a note, is called the holder of it. 3. A note which is made payable "to order," "or bearer," is said to be negotiable; that is, the holder may sell or transfer it to whom he pleases, and it can be collected by any one who has lawful possession of it. Notes without these words are not negotiable. (See Nos. 1, 2.) 4. If the holder of a negotiable note which is made payable to order wishes to sell or transfer it, the law requires him to endorse it, or write his name on the back of it. The person to whom it is transferred, or the holder of it, is then empowered to collect it of the drawer; if the drawer is unable, or refuses to pay it, then the endorser is responsible for its payment. (See No. 1.) 5. When a note is made payable to the bearer, the holder can sell or transfer it without endorsing it, or incurring the liability for its payment. Bank notes or bills are of this description. (See No. 2.) 6. When a note is made payable to any particular person without the words order or bearer it is not negotiable; for, it cannot be collected or sued except in the name of the person to whom it is made payable. (See No. 3.) 7. A note should always specify the time at which it is to be paid; but if no time is mentioned, the presumption is that it is intended to be paid on demand, and the giver must pay it when demanded. 8. According to custom and the statutes of most of the States, a note or draft is not presented for collection until three days after the time specified for its payment. These three days are called days of grace. Interest is therefore reckoned for three days more than the time specified in the note. When the last day of grace comes on Sunday, or a national holiday, as the 4th of July, &c., it is customary to pay a note on the day previous. 9. If a note is not paid at maturity or the time specified, it is necessary for the holder to notify the endorser of the fact in a legal manner, as soon as circumstances will admit; otherwise the responsibility of the endorser ceases. 10. Notes do not draw interest unless they contain the words "with interest." But if a note is not paid when it becomes due, it then draws legal interest till paid, though no mention is made of interest. (Art. 400. Obs.) 11. Notes which contain the words "with interest," though the rate is not mentioned, are entitled to the legal rate established by the State in which the note is made. In writing notes therefore it is unnecessary to specify the rate, unless by agreement it is to be less than the legal rate. 12. When a note is made payable on a given day, and in a specified article of merchandise, as grain, stock, &c., if the article specified is not tendered at the given time and place, the holder can demand, payment in money. Such notes, are not negotiable; nor is the drawer entitled to the days of grace. 13. When two or more persons jointly and severally give their note, it may be collected of either of them. (See No. 4.) 14. The sum for which a note is given, is called the principal, or face of the nole; and should always be written out in words. 415. When it is required to compute the interest on a note, we must first find the time for which the note has been on interest, by subtracting the earlier from the later date; (Art. 303;) then cast the interest on the face of the note for the time, by either of the preceding methods. (Arts. 404, 409.) OBS. In determining the time, the day on which a note is dated, and that on which it becomes due should not both be reckoned; it is customary to exclude the former. Ex. 1. What is the interest due on a note of $625 from Feb. 2d, 18-16, to June 20th, 1847, at 6 per cent.? 2. Sixty days after date, I promise to pay George Baker, or order, Four Hundred and Fifty Dollars, with interest, value received. ALEXANDER HAMILTON. $630. (No. 2.) BOSTON, Aug. 5th, 1847. 3. Thirty days after date, I promise to pay Messrs. Holmes & Homer, or bearer, Six Hundred and Thirty Dollars, with interest, value received. JAMES UNDERWOOD. $850. (No. 3.) PHILADELPHIA, Sept. 16th, 1847. 4. Four months after date, I promise to pay Horace Williams, Eight Hundred and Fifty Dollars, with interest, value received. JOHN C. ALLEN. (No. 4.) $1000. CINCINNATI, Oct. 3d, 1847. 5. For value received, we jointly and severally promise to pay to the order of Wm. D. Moore & Co., One Thousand Dollars, in one year from date, with interest. JOSEPH HENRY, 6. What is the interest on a note of $634 from Jan. 1st, 1846, to March 7th, 1847, at 6 per cent.? |