2 For value received, I promise to pay Peter Trusty, or ordé Five Hun dred Dollars, with interest, July 1, 18:25.

$500.

JAMES CARLESS

Ans., $75,15.

What remained due July 16, 1828?

3. For value received, I promise to pay William Stimpson, or order, On Thousand Dollars, with interest. Jan 16, 1820.

$1000.

ENDORSEMENTS.

PETER CAREFUL.

Time.

$120

$180

3, 1, 10,
8, 15, 6

March 16, 1821, received $600

May 1, 1822,

July 15, 1822,

What remained duc Jan. 16, 1823? Ans., $203,50.

Many have discarded the preceding rule, under a false impression that it does not proceed on the ground of simple interest; in other words, that the "inter est" (allowed the debtor) "will, in a course of years, completely expunge, or, as it may be said, cat up the debt." This objection, as it respects simple interest it is believed, may be completely obviated. We will cite an example, which in generally considered as illustrating this objection in a forcible manner :

A lends B 100 dollars, at 6 per cent. interest, and takes his note of hand. B does no more than pay A at every year's end 6 dollars (which is then justly dus to B for the use of his money), and has it endorsed on his note. At the end of 10 years, B takes up his note, and the sum he has to pay is reckoned thus:-the principal, 100 dollars, on interest 10 years, amounts to 160 dollars: there are nine endorsements, of 6 dollars cach, upon which the debtor claims interest; one for 9 years, the second for 8 years, the third for 7 years, and so down to the time of settlement; the whole amount of the several endorsements and their interest (as any one may see by casting it), is $70, 20 cts.; this, subtracted from 160 dollars, the amount of the debt, leaves, in favour of the creditor, $89, 40 cts. or $10,20 cts. less than the original principal, of which he has not received a cent, but only its annual interest.

Extend it to 28 years, and A, the creditor, would full in debt to B, without receiving a cent of the 100 dollars which he lent him.

In this example, in the first place, there is not actually due A $6 at each year's end, to be by him put out at interest; for this would be more than simple interest. In the next place, the objection proceeds on the supposition that the annual endorsements of $6 were closely locked up in A's coffers, or lying dormant; for, had the $6 been put out at interest, as it might have been, tho amount of it would of course be the same as the amount of the endorsements: hence the principal of the note would remain in reality uninipaired. In this way B gets interest for the money advanced or endorsed, and A loses nothing by it, for the payments are at his disposal. The correctness of this rule may bo further illustrated by the same example. If the $6 interest be reserved, and tho payment of $6 be deducted yearly from the principal, the interest being cast on the remainder at every year's end, and reserved as before, then at the time of settlement, A could not reasonably claim any more, on the ground of simple interest, than what remained of the principal, and the sum of the interest of the principal from time to time, added together. For it certainly is not reasonable that he should have interest on any moro principal than he actually had during the whole time. This process produces the same result as the former. Hence we infer, that, if the preceding rule be correct on the ground of simple interest (which must be allowed from the preceding facts), it follows, that any other mode, producing a different result from this, must be incorrect.

The Connecticut and Massachusetts rules, which are by law established, that is, ice results widely different from the above, and that, too, in favour . the They must, then, give the lender more than simplo interest,

"Compute the interest on the principal sum to the first time when a payment was made, which, either alone, or together with the preceding payments (if any), exceeds the interest then due; add that interest to the principal, and from the sum subtract the payment, or the sum of the payments, made at that time, and the remainder will be a new principal, with which procecd as with the first principal, and so on, to the time of settlement."

1. For value received, I promise to pay Jason Park, or order, Six Hundred Dollars, with interest. March 1, 1822. $600. STEPHEN STIMPION.

18

Oct. 16, 1827,

Time.
1, 2, 1, 1, 15, 1

$ 80

$ 12

$158, 15, 1, 7,

$100 15, 10, 15.

$150

What was there due August 31, 1828? Ans. $194,41.

The principal, $600, on interest from March 1, 1822,
Interest to May 1, 1823, (14 mo.)

Payment, May 1, 1823, a súm greater than the interest,

Die May 1, 1823, forming a new principal,
Interest on $442, from May 1, 1823, to June 16, 1824, (13) mo.)

Payment, June 16, 1824, a sum greater than the interest then due,

$600,00 42,00

Amount, $642,00

200,00

$442,00

29,83

Amount,

Due June 16, 1824, forming a new principal,
Interest on $391,83, from June 16, 1824, to March 1, 1826, (20mo.)

Due March 1, 1826, forming a new principal,
Interest on $304,99, from March 1, 1826, to Oct. 16, 1827, (19} mo.)

$304,99

29,73

Payment, Oct. 16, 1827, a sum greater than the interest then due, 150,00

Due Oct. 16, 1827, forming a new principal,
Interest on $184,72, from Oct. 16, 1827, to August 31, 1828, being the
time of settlement, (10/mo.)

Balance due Aug. 31, 1828,

$184,72

9,69

$194,41

2. For value received, I promise to pay Asher L. Smith, or order, Nine Hun dred Dollars, with interest. June 16, 1820.

Established by the Supreme Court of the State of Connecticut in 1804: "Compute the interest to the time of the first payment; if that be one year or more from the time the interest commenced, add it to thi principal, and deduct the payment from the sum total.

If there be after payments made, compute the interest on the balance due to the next payment, and then deduct the payment as above; and, in like manner, from one payment to another, till all the payments are absorbed; provided the time between But if any one payment and another be one year or more. payments be made before one year's interest hath accrued, then compute the interest on the principal sum due on the obligation, for one year, add it to the principal, and compute the interest on the sum paid, from the time it was paid up to the end of the year; add it to the sum paid, and deduct that sum from the principal and interest, added as above.*

"If any payments be made of a less sum than the interesl arisen at the time of such payment, no interest is to be com puted, but only on the principal sum for any period."

1 For value received, I promise to pay Peter Trusty, or order, One Thousand Dollars, with interest. June 16, 1824.

$1000.

What was due August 26, 1828?

$1000,00 principal of the note.

Time.

JAMES PAYWELL.

$157 1, 15, 1, 1, 15,
$.87 1, 8, 15, 1, 2,
$218) 15, 6, 10.

Ans. $507,26.

62,50 interest to July 1, 1825, (12) months.)

$1062,50 amount.

250,00 1st payment deducted.

$812,50 due July 1, 1825.

54,84 interest to August 16, 1826, (13) months.)

$867,34 amount.

157,00 2d payment deducted.

$710,34 due August 16, 1826.

42,62 interest for 1 year.

$752,96

amount of 3d payment to August 16, 1827 (the end of the year) to

90,69 {ing 8 months.

$662,27 due December 1, 1826.

48,01 interest to February 16, 1828, (1 year months

$710,28 amount.

218,00. 4th payment.

$492,28 due February 16, 1828.

15.58 interest to August 26, 1828, (6) months.)

$507,86 due August 26, 1828, the time of settlement.

If a year does not extend beyond the time of payment; but if it does, then and the amount of the principal, remaining unpaid, up to the time of settle

2: For value received, I promise to pay John P. Smith, or order, Eight Hun dred and Seventy-five Dollars, with interest. January 10, 1821: $875.

HARRY THOMSON

↑ LXXVI. Practice in Compound Numbers. Operations in compound numbers, as pounds, shillings, for instance, may be shortened by taking aliquot parts, as in Practice of Federal Money, T XXVIII

1. What is the cost of 28 bushels of salt, at 10 s. a bushel: In this example, 10s.£; then, of 28 bushels is the cost in pounds, thus, 28214£, Ans.

2. What will 40 bushels of wheat cost, at 5 s.: At 10 s. £? At 48.: =

= £? At 1s.

£ a bushel: I. Hence, when the price is an aliquot, or even part of a pound, we divide the number of gallons, yards, &c. by this aliquot part, as in ¶ XXVIII.

Exercises for the Slate.

=

=

I. What will 8640 yds. of cloth cost, at 10s. £a yd.? (4320) At 6 s. 8 d. =£? (2880) At 5 s. =£? (2160) At 48.=£? (1728) At 3 s. 4 d. =£? (1440) At 2 s. 6 d. = £? (1080) At 1s. 8 d. = £? (720) At 1 s. 4 d. £! (576) At 1 s. 3 d. =£? (540) At 1s. £? (432) At 10 d.=4%=£? (360) At 8d.=£? (288) At 5d.= £? (180) At 24 d. = £? (90) A. 16794£.

Note. The aliquot parts of a pound, in the following examples, may be found in the former examples.

2. What cost 20 gallons of brandy, at 6s. 8 d. per gallon: 6,13,4).

3. What cost 8 yds. of broadcloth, at 10 s. per yard? (4) 4. What cost 25 bushels of rye, at 5 s. per bushel? (6,5) 5. What cost 30 bushels of oats, at 2 s. 6 d. per bushel? (3,15) Ans. 20£ 13 s. 4 d.

ment, likewise the amount of the payment or payments from the time they were paid to the time of settlement, and deduct the sum of these several amounts from the amount of the wrincipal.