11 mo. at 6 per ct. per an. Ans. $187,06. yrs. 11 15 12. $876 for 57 days at 6 13. 253 294 15,85 9,52 9 8,27 per To find the interest of English money, at 5 пит, per cent. per anthe legal rate of interest in Great Britain. RULE. As the rate is equal to one shilling per £ for a year, take the pounds of the principal for the interest in shillings. If there be shillings, &c. reduce them to pence, mentally, and take half of the sum (rejecting the unit figure) for the pence of the interest. EXAMPLES. 1. What is the interest of £119 16 9 for one year at 5 per cent.? £119£5 19 0 for 16s. 9d. by the rule 0 0 10 Ans. £5 19 10 2. How much is the interest of £619 for 96 days, at 5 per cent. per annum? The following method of calculating the interest upon accounts, when there are partial payments, is sometimes used. 1798. January 2, Lent $ days. pro. princ. & time. 1300 -100 on interest for 13 15, Lent 110 210 20, Received 162 Then 6083)9608( 1,57 interest at 6 per cent. 35250 7,57 the amount due March 20th. 48350 42581 In computing interest on notes, when a settlement is made within a year from the date, or commencement of interest, it is generally the custom to find the amount of the principal from the time the interest commenced to the time of settlement, and likewise the amount of each payment, and then deduct the amount of the several payments from the amount of the principal. EXAMPLE. A., by his note dated April 25th, 1798, promises to pay to B. $774,76 on demand, with interest to commence four months after the date. On this note are the following endorsements : $260 19 200 The settlement is made December 15th, 1798. CALCULATION. The principal carrying interest from 25th Aug. 1790774 76 Interest to Dec. 15th, 1798 Amount of the principal First payment, Oct. 12th, 1798 Interest to Dec. 15th, 1798, 1 m. 13 days $cts. 3 ms. 20 days 14 20 788 96 $260 19 60 00 0 62 200 00 1 43 524 97 B.'s Interest Account. $27,40,8 15,32,4 15,44,0 $58 17 2 Cr. By Interest of $913,27 for 179 days, $27,23,8 By By 361,83 "" 82 4,94,7 * Taking the year at 360 days. Calculation of the same by balance of products of money and time. 6,000) 133,912 $22,31,8 as before. In casting interest, it is customary to neglect the cents, if under 50; and if 50 or more, to add one to the dollars. RULE established by the Courts of Law in Massachusetts, for making up judgments on Securities for Money which are upon Interest, and on which partial payments have been endorsed. COMPUTE the interest on the principal sum, from the time when the interest commenced to the first time when a payment was made, which exceeds either alone or in conjunction with the preceding payments (if any) the interest at that time due: add the interest to that principal, and from the sum subtract the payment made at the time, together with the preceding payments (if any) and the remainder forms a new principal; on which compute and subtract the interest, as upon the first principal and proceed in this manner to the time of the judgment. By this Rule, the payments are first applied to keep down the interest; and no part of the interest ever forms a part of a principal carrying interest. The following example will illustrate the rule, in which the interest is computed at the rate of 6 per cent. by the year, that being the legal rate of interest in Massachusetts. A., by his note, dated January 1, 1780, promises to pay B. 1000 dollars in six months from the date, with interest from the date. On this note are the following endorsements: Received April 1, 1780, $24.-Aug. 1, 1780, $4.-Dec. 1, 1780, $6.-Feb. 1, 1781, $60.-July 1, 1781, $40.June 1, 1784, $300.-Sept. 1, 1784, $12.-Jan. 1, 1785, $15-and Oct. 1, 1785, $50; and the judgment is to be entered Dec. 1, 1790. CALCULATION. The principal sum carrying int. from Jan. 1, 1780 $1000 00 Interest to April 1, 1780, 3 months 15 00 Amount 1015 00 24 00 991.00 Paid April 1, 1780, a sum exceeding the interest Remainder for a new principal Int. on $991 from Ap. 1, 1780, to Feb. 1, 1781, 10 m. 49 55 Paid Aug. 1, 1780, a sum less than the inter Remainder for a new principal Interest on 970 dols. 55 cts. from Feb. 1, 1781, to Paid July 1, 1781, a sum exceeding the interest Amount 1040 55 $4.00 60 00 70 00 970 55 24 26 Amount 994 81 40 00 954 81 167 09 Amount 1121 90 300 00 821 90 65 75 Amount 887 65 Paid Oct. 1, 1785, do. greater with two payments than the interest then due last 50.00 77 00 810 65 Paid June 1, 1784, a sum exceeding the interest Paid Sept. 1, 1784, a sum less than the inter Remainder for a new principal Interest on 810 dols. 65 cts. from Oct. 1, 1785, to be entered (5 years 2 months) Judgment rendered for the amount 251 30 1061 95 |