WRITTEN EXERCISES. 1. What is due Aug. 18, 1893, on a note for $400, dated Apr. 1, 1891, with interest at 6%, on which are the following indorsements: Jan. 13, 1892, $50; Sept. 22, 1892, $10; Apr. 25, 1893, $125. 2. A note for $800, dated Apr. 4, 1892, had the following What was due Aug. 1, 1894, at 6% ? 3. What is due May 10, 1891, on a note for $1600, dated Sept. 16, 1888, with interest at 5%, on which are the following indorsements: June 8, 1889, $400; Oct. 15, 1890, $500; Jan. 15, 1891, $300? 4. What is due Oct. 20, 1893, on a note for $2000, dated Mar. 6, 1890, with interest at 5%, on which are the following indorsements: July 6, 1891, $150; Sept. 25, 1892, $200; May 9, 1893, $250? 5. What is due May 20, 1883, on a note for $2400, dated June 4, 1880, on which are the following indorsements: Aug. 8, 1880, $180; May 2, 1881, $100; July 10, 1882, $50; Jan. 15, 1883, $500 ? 6. What is due Dec. 31, 1895, on a note for $1800, dated Oct. 10, 1891, with interest at 7%, on which are the following indorsements: Apr. 1, 1892, $55.50; July 21, 1893, $200; June 15, 1895, $200 ? 7. $3500. Chicago, Mar. 6, 1888. On demand, I promise to pay George M. Saylor, or order, three thousand five hundred dollars, for value received, with interest at 8%. H. R. Bozorth. Indorsed as follows: June 10, 1889, $1250; Sept. 4, 1889, $400; Jan. 15, 1890, $550; May 20, 1890, $600. How much was due Dec. 20, 1890? THE VERMONT RULE. Apply the first payment to the liquidation of the interest due on the face of the note or the debt at the time the payment is made. If the payment exceeds the interest, apply the surplus to the reduction of the principal; and so proceed till the time of settlement. NOTE.-Interest is not allowed on the simple interest remaining unpaid before settlement. ANNUAL INTEREST. 187. Annual Interest is simple interest on the principal and each year's interest, if unpaid, from the time it is due until the day of settlement. Annual interest is charged when the words "with interest payable annually" are on the note. WRITTEN EXERCISES. 1. What is due on a note for $600 at 6% for 3 yr. 4 mo. 12 da., interest payable annually? The interest on $600 for 1 yr. at 6% is $36. 1st year's interest is unpaid for 2 yr. 4 mo. 12 da. yr. 8 mo., interest Int. of $600 for 3 yr. 4 mo. 12 da. at 6% Int. of $36 for 4 yr. 1 mo. 6 da. at 6% 2. What is due on a note for $560 for 2 payable annually at 6% ? 3. What is the annual interest of $1260 for 2 da. at 5% ? yr. 9 mo. 15 4. How much is due Apr. 1, 1894, on a note for $1000, dated July 15, 1891, interest payable annually at 8%, if the yearly interest has been regularly paid? 5. What is the annual interest of $1400 for 5 yr. 6 mo. 18 da. at 5% if the interest for the first two years has been paid? 6. What is due on a note for $840 at 51% for 4 yr. 8 mo. 18 da., interest payable annually, if the interest for the first year has been paid? yr. 10 mo. 7. What is due on a note for $960 at 4% for 5 12 da., interest payable annually, if the interest for the first two years has been paid? COMPOUND INTEREST. 188. Compound Interest is interest on both principal and interest if the interest is unpaid when due. WRITTEN EXERCISES. 1. What is the compound interest of $300 for 2 yr. at 6% ? Find the amount of the principal for the first period of time. Find the amount of this new principal for the second period, and thus continue until the end of the time. Subtract the first principal from the last amorint, and the result will be the compound interest. If the interest is compounded semiannually, the rate is onehalf the annual rate; if quarterly, one-fourth the annual rate, etc. Find the compound interest of 2. $300 for 2 yr. at 6%. 3. $400 for 3 yr. at 5%. 4. $1000 for 4 yr. at 7%. 5. $2000 for 3 yr. at 4%. 6. If the interest on $500 is compounded annually for 2 years, at what rate per cent. would the simple interest on the same principal for the same time equal the compound interest? The work may be greatly shortened by using the table on page 208. |