119. $352.46 for 7 yrs. 8 mos.? 120. $1226.83 for 4 yrs. 3 mos. 9 dys.? 121. $864.41 for 2 yrs. 7 mos. 15 dys.? 122. $256.30 for 11 mos.? 123. $22.98 for 1 yr. 3 mos.? 124. $684.37 for 11 mos. 23 dys.? What is the amount of 125. $624.84 from June 17, 1886, to Aug. 7, 1889, at 7%? 126. $146.22 from July 4, 1890, to Sept. 18, 1890, at 8%? 127. $1042 from Feb. 28, 1888, to Nov. 30, 1888, at 10%? 128. $6234.16 from June 11, 1891, to Sept. 19, 1891, at 61% ? 129. $24.98 from Jan. 14, 1876, to July 18, 1889, at 7%? 130. $324.72 from April 6, 1887, to Aug. 4, 1888, at 5%? 131. $1216.66 from Nov. 30, 1890, to Aug. 29, 1891, at 4%? 132. $623.50 from Jan. 16, 1891, to Dec. 14, 1891, at 31%? 133. $2241.62 from Dec. 29, 1887, to Aug. 24, 1889, at 12% ? 134. $26.50 from June 30, 1868, to Nov. 29, 1891, at 71%? COMPOUND INTEREST. When interest is considered as payable at specified intervals of time, the interest due after the lapse of every such interval, if unpaid, may be regarded as a new loan to be added to the principal to form a new principal. Thus, interest is paid on interest as well as on the original principal. This is termed compound interest. What is the interest on $2244 for 3 yrs. 4 mos. and 16 dys. at 6%, interest being compounded annually? What is the amount of $10,000 for 1 yr. 6 mos. at 43%, interest compounded semi-annually? $10729.55 = amount of $10,000 for 18 mos. at 43%. PROBLEMS IN COMPOUND INTEREST. What is the amount of 135. $613.72 for 3 yrs. 7 mos. 16 dys., interest compounded annually? 136. $221.32 for 4 yrs. 11 mos. at 5%, interest compounded annually? 137. $950 for 1 yr. 7 mos. at 8%, interest compounded semi-annually? 138. What is the interest on $617.25 from July 1, 1889, to July 14, 1891, interest compounded semi-annually? In different states different laws and usages prevail in regard to compound interest. The general rule is that only simple interest can be charged. Interest due and unpaid may, however, be collected by action at law. Savings banks pay compound interest. Being credited to the depositor when due, the interest is, in effect, paid and immediately taken back as a new loan. In some states, where compound interest cannot be collected, it is allowable to charge simple interest on each deferred payment of interest; in other states, compound interest may be collected. What is the interest on $416.12 for 2 yrs. 4 mos. 16 dys. at 6%, interest being payable semi-annually, but not actually paid until the expiration of the time, simple interest being allowed on the deferred payments? 416.12 $12.486 mos. interest. 1st deferred paym't of $12.48 bears int. for 1 yr. 10 mos. 16 dys. 12.48 10 mos. 16 dys. 4 mos. 16 dys. interest on $12.48 for 4 yrs. 6 mos. 4 dys. $3.378 = interest on $12.48 for 4 yrs. 6 mos. 4 dys. Simple interest on the principal and on each year's interest is sometimes called annual interest. What is the annual interest on $10,500 for 3 yrs. 4 mos. 24 dys. at 6%? 2 yrs. 4 mos. 24 dys. What is the amount at annual interest of 142. $1654.26 for 2 yrs. 3 mos. at 7% ? 143. $891.82 from June 19, 1887, to Jan. 6, 1891, at 51%? 144. $1682.36 from Apr. 30, 1888, to Dec. 6, 1890, at 5%? 145. $642.50 from Nov. 16, 1887, to Feb. 28, 1891, at 74%? |