297. Promissory note. A paper signed by a borrower, agreeing to repay money, is called a promissory note.

298. Face of note. The sum borrowed is called the principal, or, if a note is given, the face of the note.

299. Amount of note. The sum of the principal (or face) and interest is called the amount.

Notes should state value received, the date, face, rate, person to whom payable, and time of payment.

$75.00

BUFFALO, N.Y., February 7, 1907

Six months after date, for value received, I promise

300. Rate of interest. The rate of interest varies in different parts of the country. The United States has to pay about 2%. Savings banks pay 3% or 4%. People borrowing money in cities, on good security, pay from 4% to 6%.

WRITTEN EXERCISE

1. Compute the amount of the above note.

2. Write a promissory note, Y, for $25, due in 1 yr., at 6%.

signed by X, payable to Find the amount.

3. Write a promissory note as before, for $250, due in 10 mo., at 5%. Find the amount.

4. Write a promissory note as before, for $400, due in

301. Bank discount. When a man borrows from a bank

he

pays the interest in advance.

Interest is not mentioned

in the note, because it has already been paid.

Interest paid in advance on a note is called discount.

Teachers should call attention to the fact that the same word is used for bank and commercial (trade) discount, explaining that the process is the same in both cases, — finding some per cent of a number. The technicalities of interest-bearing notes are explained later. In all work at present call 30 days a month.

302. Proceeds. The face of a note less the discount is called the proceeds.

303. Illustrative problem. What is the discount on a $200 note for 6 mo. at 5%? What are the proceeds?

1. The discount (interest) for 1 yr. is 5% of $200, or $10. 2. For yr. it is of $10, or $5, discount.

304. Payee of a note. The person named in the note as the one to whom it is payable is called the payee.

305. Maker of a note. The one who signs the note is called the maker.

306. Indorsing notes. If the payee wishes to sell the note, he must, when it is payable to himself or order, indorse it.

A note is indorsed by the payee writing his name across the back. The indorser must pay the note if the maker does not.

If he wishes it payable to the order of John Roberts, he writes across the back, "Pay to the order of John Roberts," and signs his name.

A note payable to John Johnson or bearer may be sold without indorsement. Such notes are not common.

WRITTEN EXERCISE

1. F. H. Holmes borrows $350, at 6%, for 1 yr., from A. B. Seel. He gives a note payable to Mr. Seel or order. Mr. Seel sells the note to B. C. Dean. Make out the note, indorse it, and find the amount due at the end of the year.

Make out and indorse, payable to the order of the buyer, the following notes, and find the amount due at the end of the time stated:

RATIO

30%. Ratio. The relation of one quantity to another of the same kind, as expressed by division, is called the ratio of the first to the second.

Without using the name, we studied about ratio in studying fractions. The ratio of $2 to $4 is or;

the ratio of 6 ft. to 5 ft. is §.

A B C D E

In this picture the ratio of E

to A is; of D to C, 3; of C to B, 2; of D to B, .

ORAL EXERCISE

1. In the picture above, what is the ratio of B to A?

2. Also, what is the ratio of A to B? of E to C?

3. In the picture above, if A represents $15, what values must be given to B, C, D, and E?

4. If each cube weighs 6 oz., give the ratios of A to B; B to C; C to D; E to D.

5. In the picture below, what is the ratio of C to B? of C to A? of B

to A?

6. What is the

ratio of A to C?

of B to C? of A to B + C?

7. What is the

ratio of any two

equal numbers?

tion,

308. Writing ratios. A ratio may be written like a frac

2 ft.
3 ft.

, or with a sign of ratio (:), as 2 ft. : 3 ft.

We think of the ratio of 20 ft. to 4 ft. as

20 ft.
4 ft.

, 20 ft.: 4 ft.,

20, 20: 4, or simply as 5. The word ratio is used for all. 309. Antecedent. The first term is called the antecedent. 310. Consequent. The second term is called the consequent.

311. Ratios always abstract. Because any number divided by a like number, as feet by feet, has an abstract quotient,

A ratio is always abstract, and its terms may be written as abstract numbers.

Teachers should use the fractional form at first, because the pupils are already familiar with it.

13. What is the number whose ratio to 5 is 6?

14. What is the number to which 75 has the ratio 3? 15. The ratio of the height of a certain door to its width is 3. It is 7 ft. high. How wide is it?

16. The ratio of Fred's father's height to Fred's height