2.

DANIELSONVILLE, CONN., April 15, 1896.

On demand, I promise to pay to the order of Robert P. Webb, Two Thousand Dollars, value received, with interest.

00

$2000

JOHN J. BARNICLE.

On this note are endorsed the following payments: $50, Sept. 20, 1896; $100, May 26, 1897; $1,000, June 20, 1898. How much is due Dec. 27, 1899?

Face of note

As the first payment, $50, is not large enough to meet the interest then due, the interest on $2,000 is calculated to date of second payment, May 26, 1897, 1 yr. 1 mo. 11 da. . Amount due May 26, 1897

Less payments, $50 and $100

Balance May 26, 1897. .

Interest on $1,983.67 to June 20, 1898, 1 yr. 24 da.

Amount due June 20, 1898

Less third payment

Balance June 20, 1898

$2000.00

133.67 $2133.67 150.00

$1983.67

126.95

$2110.62

1000.00

$1110.62

101.25

Interest on $1110.62 to Dec. 27, 1899, 1 yr. 6 mo. 7 da.

Due Dec. 27, 1899 .

$1211.87

3. Find the amount due April 16, 1898, on an interest-bearing note for $1,000 drawn June 1, 1896; on which were paid $150, Sept. 16, 1896; and $50, Sept. 16, 1897.

4.

NEW HAVEN, CONN., July 25, 1896.

On demand, I promise to pay to the order of Frank Regan, Jr., Five Hundred Dollars, with interest at 6%. $500,0%

JAMES W. NAUGHTON.

Endorsements: Sept. 18, 1896, $100; Feb. 5, 1897, $200. How much is due April 1, 1897 ?

5.

HARTFORD, CONN., Jan. 2, 1894.

Three years after date, we promise to pay to the order of George G. Brown, Eight Hundred Seventy and 50 Dollars, value received, with interest.

$870,5%.

100

WHITLOCK, TULLY, & Co.

Find the sum due at maturity on the above note, the following payments having been made: Sept. 12, 1895, $35; March 18, 1896, $200; Aug. 24, 1896, $250.

ANNUAL INTEREST.

1308. Partial Payments.

When payments have been made on a note subject to "annual interest," the amount due at any time is calculated as follows:

Find the amount of the principal by the method given for annual interest (Art. 1172) until the end of the first year in which the amount of the payment or payments equals the interest then due. From the amount of the principal, subtract the amounts of the payments. Use the balance then due as a new principal, and proceed as before.

6.

LANSING, MICH., June 1, 1895.

For value received, I promise to pay to the order of Jere. Smith, Six Hundred Dollars, with interest annually at six per

cent.

$600,00%.

FRANK H. COOPER.

Endorsed: Feb 1, 1896, $30; July 1, 1896, $100; Oct. 1, 1897, $200.

7. Hiram Stevens, of Hallowell, Me., borrowed of John Karst, June 15, 1895, seven hundred dollars, agreeing to repay it on demand with six per cent per annum, and six per cent on the deferred payments of annual interest. The following payments were made: Nov. 15, 1895, $20; Feb. 15, 1897, $80; Sept. 15, 1898, $15. Find the amount due Oct. 15, 1899.

1309. New Hampshire Rule.

In New Hampshire, partial payments on a note "with interest annually" are subject to the following rule:

If the payments during a year equal or exceed the interest due at the end of the year, the amount of the payments to that date is deducted from the amount of the principal.

If the payments are less than the interest due, the amount of these payments is used (1) to cancel the interest due on the annual interest, and (2) to reduce the annual interest then due. But if no interest is due except what is accruing during the year, only the principal of the payments is thus applied, no interest being added.

NOTE. — When a payment is less than the interest due on the annual interest, the remaining simple interest is not subject to interest.

8.

00

PORTSMOUTH, N.H., June 1, 1895.

On demand I promise to pay to the order of W. M. Davis & Co., Six Hundred and Dollars, value received, with interest annually, at six per cent.

$600,000.

HENRY C. MCLEAN.

Endorsements: Feb. 1, 1896, $30; July 1, 1896, $100; Oct. 1, 1897, $200. How much is due Oct. 1, 1898 ?

I promise to pay Albert S. Caswell, on demand, Two Thousand Five Hundred Dollars, with interest annually.

$2500,000.

WALTER B. GOODNOUGH.

Endorsements: Oct. 1, 1896, $100; June 1, 1897, $ 1,000; Nov. 1, 1898, $50. Find the amount due Oct. 1, 1899.

10. How much is due March 11, 1899, upon a note for $1,000, with annual interest, drawn Jan. 3, 1895, on which the following payments have been made: June 1, 1895, $10; March 14, 1896, $10; Sept. 30, 1898, $500?

NOTE. - Ordinary interest-bearing notes on which partial payments have been made, are subject to the U.S. Rule.

1310. Vermont Rule.

Partial payments on "annual interest notes are used in Vermont (1) to cancel the interest due on the annual interest; (2) to reduce the annual interest then due; (3) to reduce the principal.

RULE.

If the payments during a year equal or exceed the interest due at the end of the year, the total of the amounts of the payments is deducted from the amount of the principal.

If the total payments are less than the interest due, the amounts of these payments are used (1) to cancel the interest due on the annual interest, and (2) to reduce the annual interest then due.

NOTE. When the amount of a payment is not sufficient to cancel all the interest due on the annual interest, the balance of this simple interest is not subject to interest.

11.

BURLINGTON, Vг., June 1, 1895.

Due Halsey Clark, Six Hundred Dollars, payable on demand, with interest at six per cent annually.

$6001%%

CHARLES HERMAN.

Endorsements: Feb. 1, 1896, $30; July 1, 1896, $100; Oct.

1, 1897, $200. How much is due Oct. 1, 1898?

I promise to pay Ahern & Bro., on demand, Two Thousand Five Hundred Dollars, with interest annually.

$2500,00%

MAGNUS SCHULER. Endorsements: Oct. 1, 1896, $100; June 1, 1897, $1,000; Nov. 1, 1898, $50. Find the amount due Oct. 1, 1899.

13. Find the amount due March 11, 1899, upon a note for $1,000, with annual interest, drawn Jan. 3, 1895, on which the following payments have been made: June 1, 1895, $10; March 14, 1896, $10; Sept. 30, 1898, $500.