2. How much is due June 3, 1905, on a demand note for $1200, with interest at 6%, dated June 3, 1902, bearing indorsements of payment of $500, Sept. 18, 1903; $600, Jan. 3, 1904?

NOTE. Anything written on the back of a document is called an indorsement. Payments made are usually written on the back of the notes.

3. A demand note for $600, bearing interest at 5 %, was given Feb. 18, 1902. A payment of $250 was made May 28, 1903; one of $150 was made Oct. 8, 1903. How much is due Jan. 23, 1905?

4. A note for $2000, with interest at 7%, was dated April 15, 1901. Indorsements were made as follows: $50, Sept. 20, 1901; $100, May 26, 1902; $1000, June 20, 1903. How much is due Dec. 27, 1904?

Face of note,

Interest from April 15 to Sept. 20, 1901, 5 mo. 5 da.,
Amount due Sept. 20, 1901,

If the $50 payment were deducted, and interest computed on the balance, $ 2010.27, the maker would be charged interest on $10.27 more than the face of the note, and this the law does not allow. Interest is taken on $2000 until next payment, May 26, 1902, 8 mo. 6 da.,

Amount due May 26, 1902,

$2000.00 60.28 $2060.28

95.67 $2155.95

As the two payments are not large enough to meet the interest now due, the interest is again computed on the original $2000 from May 26, 1902, to June 20, 1903, 1 yr. 24 da., Amount of $2000 from April 15, 1901 to June 20, 1903, $2305.28 Less $50 + $100 + $1000 (three payments),

Balance due June 20, 1903,

Interest on $1155.26 to Dec. 27, 1904, 1 yr. 6 mo. 7 da.,
Due Dec. 27, 1904,

149.33

1150.00

$1155.28

122.87

$1278.15

5.

ALBANY, N.Y., March 5, 1903.

One year after date, I promise to pay John Harrigan, or order, Nine Hundred Dollars, value received, with interest at six per cent. $900,000

6.

ANDREW T. SULLIVAN.

Indorsed as follows: June 5, 1803, $10; Sept. 5, 1903, $50; Jan. 5, 1904, $120. What was due March 8, 1904? ALEXANDRIA, LA., June 19, 1903. On demand I promise to pay to the order of George H. Dotzert, Two Thousand Four Hundred Fifty-four 75 Dollars, value received, with interest at 6

$ 2454,75%.

per cent.

100

CHARLES W. LYON.

The following payments were made: July 5, 1903, $450; Sept. 18, 1903, $700; Oct. 25, 1903, $300. Find the amount due Jan. 2, 1904.

329. In the United States courts, and in those of some of the states, interest for a portion of a year is taken by days, upon the basis of 365 days to the year. To make the work easier for the pupils, however, the year of 360 days should be used in the examples given, and the time between dates should be found by compound subtraction.

330. Merchants' Rule.

The merchants' rule is frequently used where all the payments are made within a year.

The interest is computed on the face of an interestbearing note from its date until settlement, and interest is allowed on all credits from their payment until settlement. The exact number of days is taken, and the interest is computed on the basis of 360 days to the year.

BOSTON, MASS., June 19, 1903. On demand, I promise to pay Charles R. Buttrick, or order, Two Thousand Four Hundred Fifty-four 75 Dollars,

value received, with interest at 6 per cent.

100

JOHN J. P. FAGAN.

The following payments are endorsed on the note: July 5, 1903, $200; July 29, 1903, $450; Sept. 18, 1903, $700; Oct. 25, 1903, $ 300.

Find the amount due Jan. 2, 1904.

If no payments had been made, there would be due,
And interest from June 19 to Jan. 2, 197 days,
Total due,

The credits are: Payment July 5, 1903,

$2454.75

80.60

$2535.35

$ 200.00

Interest on $700, Sept. 18 to Jan. 2, 106 days,

12.37

Find the amount of an interest-bearing note at the time of settlement.

Find the amount of each credit from its time of payment to the time of settlement; subtract their sum from the amount of the note.

331. Written Exercises.

1. A note for $500, with interest at 6 %, is dated July 25, 1904. Payments are made: $100, Sept. 18; $ 200, Feb. 5, 1905. How much is due April 1, 1905?

2. Find amount due Sept. 15, 1903, on a demand note for $1875, with interest at 6 %, dated Jan. 18, 1903. Payments of $1000 and $500 were made March 30 and June 17, respectively.

3. June 12, 1904, Robert Colgate bought goods amounting to $600. Dec. 31, 1904, he paid $ 300; April 5, 1905, $200; June 1, 1905, he settled the account. How much did he pay

on that date, if he is charged 6% on the purchase from its date, and is allowed 6 % interest on his payments?

4. John C. Kelley loaned Chas. R. Robertson $500, Sept. 1, at 6%. Payments of $200 each were made Oct. 1 and Nov. 1. How much is due Dec. 1?

Dr.

HORACE E. DRESSER

Cr.

1905.

1905.

Feb. 5 To merchan- 840 00 Mar. 9 By cash,

500 00

5. Find the amount paid in settlement of the foregoing account, Dec. 31, 1905. Interest 6%.

6. A merchant's books show the following debits: Feb. 13, merchandise, $725.00; April 14, merchandise, $603.00. The credits are: April 5, cash, $600; Aug. 29, cash, $ 300. How much is due Oct. 5, interest 6 %?

332. Oral Exercises.

1. If I sell for $4.50 a book which cost me $3, what per cent do I gain?

2. What is the interest of $200, for 90 days, at 3% ?

3. One acre of corn yields 80 bushels, and another acre 20% more. What does the second acre yield?

4. What will it cost to fence a garden 10 rods long and 6 rods wide, at $1 a rod?

5. In a certain school 40 pupils are present and 10 are absent. What per cent are absent?

6. What is the difference between a floor 40 feet square and two others each 20 feet square?

7. What is the interest of $12, for 1 yr. 4 mo., at 6%? 8. If 2 pecks of berries cost one dollar, what would 3 quarts cost at the same rate?

9. Bought 5 bushels nuts at a dollar a peck, and got 5% off for cash. How much did I pay for the nuts?

333. Written Problems.

1. Gold coin contains 90 per cent gold, 9 per cent silver, 1 per cent copper. Find the quantity of each metal in 50 double-eagles ($20), each containing 516 grains.

2. A, B, and C buy a farm. A pays $8750, B pays $7200, C pays $4100. What per cent of the purchase money does each furnish?

3. The one-cent pieces weigh 48 grains. How many dollars would weigh 120 pounds avoirdupois (7000 grains to pound)?

4. If a person lends me $250 for 8 months, for how long ought I to lend him $400 as an equivalent?

5. Goods costing $8 are sold at an advance of 20 per cent. The marked price is $12. What per cent reduction is made on the marked price?

6. There are 5 boys whose heights are 4 ft. 9 in., 5 ft. 1 in., 4 ft. 5 in., 3 ft. 11 in., and 4 ft. 4 in., respectively. What is their average height?

7. In the written number 185.4, the number expressed by the first two (left-hand) figures is how many time the value expressed by the second two figures?

8. Express decimally, and also as a common fraction, the value of each of the following: 115 per cent; of 1 per cent; of 1 per cent.

5 27

9. M bought of a manufacturing business for $3517.85, and N bought of the same business at the same rate. How much did N's interest cost him?