1304. Time between Dates. 1. In the common method, by compound subtraction, each month is considered one of 30 days, regardless of its length. EXAMPLE: Find the time between May 13, 1895 and March 2, 1899. 2. A more exact method is to take first the number of entire years, then the number of entire months, and lastly the number of days. 3. Another method is to find the difference in years and days. = May 13, 1895 to May 13, 1898 – 3 years. May 13, 1898 to Mar. 2, 1899 293 days. 1305. Days of Grace. Grace is not allowed on notes, time drafts, etc., in California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Illinois, Maine, Maryland, Massachusetts, Montana, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Wisconsin. Answers in which days of grace are not included, are inclosed in a parenthesis. When a note falls due on a Sunday or a legal holiday, it is generally payable on the next business day following. In this case, banks include the extra days in calculating discount. Some states, however, require payment on the next preceding business day. In a majority of the states, days of grace are not allowed on sight drafts. 1306. Rates of Interest. The following table shows the rates of interest allowed by law in the several states and territories, the first column giving the rate allowed where none is specified in the note or other document. Any rate up to the one given in the second column is permitted when an agreement is made in writing. PARTIAL PAYMENTS. 1307. Connecticut Rule. Find the amount of the principal to the time when the payment, or the sum of two or more payments equals or exceeds the interest, if such time is one year or more from the time the interest commenced. From this amount deduct the payment or sum of payments. Use the balance then due as a new principal, and proceed as before. If, however, any payments exceeding the interest then due, are made within a year from the time from which the interest is reckoned, the amount of the principal is calculated for one year, and from this amount are deducted the amounts of such payments from the time made until the end of the year. When the settlement is made in less than one year from the time from which interest is reckoned, the amount of the principal and those of the payments are calculated to the date of settlement. 1. NORWICH, CONN., Jan. 5, 1896. Two years after date, we, jointly and severally, promise to pay to Emerson W. Keyes, or order, Three Hundred Dollars, value received, with interest at 6 per cent. $300,00% JOSIAH H. PITTS, CHARLES W. FIELD. Endorsements: May 20, 1896, $100; Nov. 2, 1896, $100; Amount of $100 from May 20, 1896 to Jan. 5, 1897, 7 mo. Amount of $100 from Nov. 2, 1896 to Jan. 5, 1897, 2 mo. 3 1 $103.75 101.05 204.80 Balance Jan. 5, 1897 $113.20 Interest on $113.20 to Jan. 5, 1898. Amount Amount of $50 from March 17, 1897 to Jan. 5, 1898, 9 mo. 18 da. Due Jan. 5, 1898 . 6.79 $119.99 52.40 $67.59 |