CASE II. 176. Given the principal, the rate, and the interest, to find the time. $240 .06 WRITTEN EXERCISES. 1. In what time will $240 give $50.40 interest at 6%? PROCESS. We find the interest of $240 for 1 yr. at 6% to be $14.40. If the interest for 1 yr. is $14.40, to give an interest of $50.40 it will require as many years as $14.40 is contained times in $50.40, which is 3 years. RULE. Divide the given interest by the interest of the principal at the given rate for one year. In what time will 2. $940 at 6% give $432.40 interest? 3. $1450 at 6% give $217.50 interest? 4. $60 at 6% give $6 interest? 5. $120 at 7% give $37.10 interest? 6. $480 at 5% give $62 interest? 7. $240 at 6% give $16.92 interest? 8. $720 at 5% give $117.30 interest? 9. $360 at 8% give $312.80 interest? 10. $600 at 7% give $613.30 amount? 11. $960 at 5% give $984.80 amount? 12. $1200 at 41% give $1203.60 amount? 13. In what time will a principal double itself at 5%? At 8%? At 4% ? 14. In what time will a principal treble itself at 6%? At 7%? At 51% ? CASE III. 177. Given the principal, the time, and the interest, to find the rate. PROCESS. .24 .03 WRITTEN EXERCISES. 1. At what rate will $640 give $172.80 interest in 4 yr. 6 mo.? 4 yr., 4 × .06 6 mo., of 6 = The interest of $640 for 4 yr. 6 mo. at 1% is $28.80. If the interest at 1% is $28.80, to give $172.80 interest it will require as many per cent. as $28.80 is contained times in $172.80, which is 6%. At what rate will yr. 8 mo.? yr. 2. $900 gain $198 in 3 yr. 4 mo. ? 7. $240 gain $41.18 in 3 yr. 8 mo.? 8. $840 amount to $981.96 in 2 yr. 9 mo. 24 da.? 9. $18.20 amount to $28.43 in 9 yr. 9 mo. 9 da.? 10. $625 amount to $710.62 in 2 yr. 3 mo. 12 da.? 11. $192 amount to $200.928 in 9 mo. 9 da.? 6 mo.? 10 mo. ? 12. $600 gain $3.525 in 47 da.? 13. $564 gain $64.108 in 11 mo. 11 da.? 14. $744 amount to $764.15 in 10 mo.? 15. At what per cent. will a principal double itself in 4 yr.? In 6 yr.? In 7 yr.? 16 At what per cent. will a principal treble itself in 10 yr.? In 30 yr.? In 5 yr.? PROMISSORY NOTES. 178. A Promissory Note is a written promise to pay a specified person a specified sum at a specified time. The Maker of a note is the person who signs it. An Indorser is a person who writes his name on the back of a note to transfer it or to guarantee its payment in case the maker fails to pay it when due. The Face of a note is the sum named in it. 179. A Negotiable Note is a note that can be transferred. A note is negotiable when it is made payable to the "bearer" or to the "order" of the payee; when it is made payable to the payee only, it is not negotiable. NOTE.-In Pennsylvania the law requires the words "without defalcation," in addition to "value received," to make a note negotiable; and in New Jersey, "without defalcation or discount." 180. A note Matures, or becomes legally due, at the expiration of the specified time. NOTE.-In some states Three Days of Grace are allowed, and then a note matures three days after the specified time. In this book days of grace will not be reckoned. Custom also varies when a note falls due on Sunday or a legal holiday-some states making it payable on the next preceding, and others on the next succeeding, business day. 181. A Protest is a written notice sent by a notary public to the indorsers, stating that the maker has failed to pay the note. If the notice is not sent on the last day of grace, the indorsers are not held responsible for its payment. NOTE.-If the words "with interest" are in the note, it draws interest from date; if these words are omitted, the note will not draw interest until after it becomes due. When no rate is mentioned, the legal rate at the place where the note is made is understood. WRITTEN EXERCISES. 182. The following are the Principal Forms of notes: 1. FORM OF A DEMAND NOTE. Philadelphia, Pa., Apr. 2, 1895. $450. On demand, I promise to pay Henry King four hundred and fifty dollars, with interest at 6%, for value received, without defalcation. Henry F. Bitner. This note was paid in 24 days; what was the amount due? 2. FORM OF A TIME NOTE. $240. Sixty days after date, I promise to pay John W. Lansinger, or order, two hundred and forty dollars, with interest at 5%, for value received, without defalcation. H. Justin Roddy. What is due on this note at maturity? Pittsburg, Pa., May 4, 1895. 3. FORM OF A PRINCIPAL-AND-SURETY NOTE. Albany, N. Y., June 1, 1895. $650.25. Ninety days after date, I promise to pay W. Hamner Piper, or order, six hundred and fifty dollars, with interest at 6%, for value received, without defalcation. J. W. Allen. Surety, W. F. Beyer. What is due on this note at maturity? 4. FORM OF A JOINT NOTE. $850. Baltimore, Md., July 2, 1895. Two months after date, we promise to pay George R. Anderson, or order, eight hundred and fifty dollars, for value received, without defalcation, with interest at 51%. John Snyder. What is due on this note at maturity? 5. A 90-day note for $1000, with interest, was paid at maturity; what was the amount due? 6. A 60-day note for $960, without interest, was paid in 100 days; what was the amount due? 7. A 3-month note for $2040, with interest, was paid in 120 days; what was the amount due? 8. What is the difference between the interest of two notes for $1200 each, given July 5, 1895, one due 3 months after date and the other 90 days after date? 9. Write a demand note for $520.84, bearing interest at 6%, with yourself as payee and John W. Hayes as maker. 10. Write a thirty-day negotiable note for $400, bearing interest at 6%, with William Y. Jones as maker and Thomas Morton payee. Indorse same to the order of J. C. Printz & Co. 11. Write a principal-and-surety note for $80.50, bearing interest at the legal rate and drawn in favor of Henry A. Jones, with Elwood Baker as maker and Robert C. Lane as surety. 12. Write a joint note, negotiable, bearing interest at 6%; face of the note $1200, time 60 days, payee Howard Smith; makers Horace Fritz and James R. Lind. 13. Face of note $650, maker W. H. Holmes, payee Charles Martin, time 90 days; write a non-negotiable note, without interest. |