The following statement of the same Note shows the interest and principal more distinctly separate. 1 principal commencing Jan. 1, 1780, $1000 00 2 payment 4 less than the int. due "Aug. 1, 66 commencing " 1, 9.00 991 00 4 do. 60 (6 Feb. 1, 1781, 20 45 3 principal commencing Feb. 1, commencing" 1, 70 less $49,55, for interest then due 5 pay't 40 less $24,26, for int. due " July 1, June 1, 1784, 132 91 5 principal 66 66 66 66 66 66 commencing " 1, 821 90 11 25 810 65 810 65 10 payment 1061,95, less $251,30, for interest due 6 principal Dec. 1, 1790, RECAPITULATION. payments thus applied. 1780 April 1 Received $24,00 int. $15,00 principal $9 00 The following example shows how the Massachusetts and Connecticut Court-Rules for calculating interest differ. B. borrows of C, $1500, on his note at 6 per cent. per an. At the expiration of 6 months he pays $1000, which is endorsed on his note, and in 6 months after, he pays it in full. Required the amount due at the expiration of the year. A TABLE, showing the number of Days from any Day in any Month, to the same Day in any other Month, through the Year. From Jan. Feb. Mar. Apr. May. June. July, Aug. Sent. Oct Nov Dec To Jan. 1365384|306|275|245|214|184|153|122! 92 61 31 Feb. 31 365 337|306|276|245|215|184153|123| 92 62 Mar. 59 281365|334|304|273|243|212|181|151|120| 90 Apr. 90 59 31|365|335|304|274|243|212|182|151|121 May 120 89 61| 30|365|335|304|273|242|212181|151 June |151 120 92 61 311365|335|304|273|243 212|182 July 181 150 122 91 61 30365|334 303|273|242|212 Aug. 212 181 153|122|92| 61| 311365|334|304|273|243 Sept. 243 212 184|153|123 92 62 31 365|335|304|274 Oct. 273 242214|183|153 122 92 61 30365|334|304 Nov. 304 273 245|214 184 153 123 92 61 31 365|335 Dec. 334 303 275 244 214 133153 122 91 61 30365 *The payment of $1000 being "made before one year's interest had accrued, and being more than the interest arisen at the time of such payment, the interest is computed on it, from the time it was paid, up to the end of the year, and added to the payment, the sum is deducted from the principal and interest added as above."-Kirby's Reports, page 49. The Use of the Table. Suppose the number of days between the 3d of May and the 3d of November was required; look in the column under May for November, and against that month you will find 184. If the given days be different, it is only adding or subtracting their inequality to or from the tabular number. Thus, from May 3d to Nov. 17th is 184+14=198 days, and from Nov. 17th to May 3d is 181-14—167 days. If the time exceed a year, 365 days must be added; thus, from the 4th of February, 1798, to the 4th of Sept. 1799, is 212-365-577 days. NOTE. In leap years, if the end of the month of February be in the time, one day must be added on that account. COMPOUND INTEREST Is that which arises both from the principal and interest; that is, when the interest on money becomes due, and not paid, it is added to the principal, and interest is calculated on this amount as on the principal before. RULE. Find the simple interest of the given sum for one year, and add it to the principal, and then find the interest for that amount for the next year, and so on for the number of years required. Subtract the principal from the last amount, and the remainder will be the compound interest. EXAMPLES. 1. Required the amount and interest of $629 for 7 years, at 6 per cent. per annum, compound interest? 629,00 principal for 1st year. 1st ཙ ཙ ཙུ É 2d 3d 3d A TABLE showing the amount of one pound or one dollar, for any number of years under 33, at the rates of 5 and 6 per cent. per annum, compound interest. 8 1,47745 1,59384 9 1,55132 1,68948 13 2,13292 29 3,22510 25 3,38635 4,29187 10 1,62889 1,79084 26 3,55567 4,54938 11 1,71034 1,89829 27 3,73345 4,82234 12 1,79585 2,01219 28 3,92013 5,11168 1,88565 4,11613 5,41838 24 4,04893 14 1,97993 2,26090 31 5,74349 4,53804 6,08810 16 2,18287 2,54035 32 4,76494 6,45388 The use of this Table is plain and easy-for multiplying the figures standing against the number of years, by the given principal, the product is the amount required. EXAMPLES. 1. What is the amount of $629 for 7 years, at 6 per cent. per annum, compound interest? 1,50363 the tabular number for 7 years. 629 1353267 300726 902178 945,78327 Ans. $945,78. 2. How much will £2 8s. amount to in 28 years, at 6 per cent. per annum, compound interest? Ans. £12 5 41. COMMISSION AND BROKERAGE. COMMISSION and BROKERAGE are compensations to Factors and Brokers for their respective services. The method of operation is the same as in Simple Interest. EXAMPLES. 1. What is the commission on $1974 at 5 per cent.? 1974 98,70 Ans. $98,70. 2. The sales of certain goods amount to $1873,40; what sum is to be received for them, allowing 2 per cent. for commission, and per cent. for prompt payment of the net proceeds? Ans. $1821 99 cts. 9 m. To invest or purchase, so as to reserve the commission, or not to overship net proceeds. As 100 more the commission on the intended purchase is to 100, so is the proposed sum to that to be laid out or invested. EXAMPLES. 1. A factor has in his hands $709,80, and being directed to invest it in purchasing certain goods, how much can he invest so as to reserve his commission of 5 per cent. on the purchase? |