7. Produce $1746.60 interest in 3 yrs. 5 mos., at 6%. 8. Produce $64.46 interest in 6 yrs., at 41%. 9. Produce $80.62į interest in 3 yrs. 9 mos., at 4%. 10. Produce $669.64 interest in 2 yrs. 7 mos. 24 dys., at 6%. 226. When the amount, time, and rate are given, to find the principal. Find the principal that will amount to $ 748.124 in 3 yrs. 6 mos., at 4% 3 yrs. 6 mos. = 31 yrs. $656.25. Ans. Ex. 146. Find the principal that will amount: 1. To $1680 in 3 yrs., at 4%. 2. To $962 in 41 yrs., at 41%. 3. To $ 725.47 in 2 yrs. 3 mos., at 31%. 4. To $3215.83 in 4 yrs. 6 mos., at 3%. 5. To $595.20 in 8 mos., at 6%. 6. To $1275.75 in 1 yr. 1 mo., at 5%. 7. To $2053.32 in 3 yrs. 5 mos., at 6%. 8. To $131.88 in 2 yrs. 11 mos. 15 dys., at 6%. 9. To $37.02 in 2 yrs. 3 mos. 18 dys., at 5%. 10. To $2359.38 in 2 yrs. 7 mos. 24 dys., at 41%. BANK DISCOUNT. 227. When the holder of a promissory note sells the note to a bank, or other purchaser, the sum paid by the bank is called the proceeds or avails of the note, and the difference between the sum named in the note and the proceeds is called the discount. 228. Discount is reckoned at so much per cent, and the per cent is called the rate of discount. 229. Questions in bank discount are calculated like questions in simple interest, the terms used being discount instead of interest, and rate of discount instead of rate of interest. Note. The sum named in the note should be written in words, and is called the face of the note. The person signing the note is called the maker; a person who writes his name on the back of the note is called an indorser, and is responsible for the payment of the note. A note, to be legal, must contain the words "value received"; to be negotiable, must be made payable to the bearer, or to the order of some person who must indorse the note. When a note bears interest, the discount is computed on the face of the note with the interest added. A note is nominally due at the expiration of the time named in the note, but it does not mature, that is, become legally due, until three days after this time. These three days are called days of grace. And the discount is computed on the time between the day the note is discounted and the day of its maturity. When the time is expressed in days, the day of maturity is found by counting forward from the date of the note the number of days named in the note, and the three days of grace. When the time is in months, the day of maturity is found by counting the number of calendar months, and the three days of grace. When a note falls due on Sunday, or a legal holiday, it is payable on the day previous. . A protest is a notice in writing by a notary public to the indorsers that a note has not been paid. If a note be not protested on the last day of grace the indorsers are released from their obligation. 230. Find the day of maturity, the time to run (from the day the note is discounted), the discount, and the proceeds of the following notes : $610.25. Boston, June 12, 1885. Sixty days after date I promise to pay to the order of Edwin Ginn six hundred ten and 25 dollars, for value received Discounted at 6%, July 1. SAMUEL HALE. Counting 60 dys. from June 12, we have 18 in June, 31 in July, and 11 in August. Therefore the note becomes due Aug. 11/14 (11 denotes the day it is nominally due, and 14 the day it is legally due). The time to run is 30 dys. in July and 14 in August, that is, 44 dys. The discount is the interest on $610.25 for 44 dys., at 6%. Therefore the discount is 73 x $0.61025 = $ 4.48. The proceeds = $ 610.25 – $4.48 = $605.77. $1050. CHICAGO, Feb. 13, 1885. Six months from date we jointly and severally promise to pay to the order of George Hall ten hundred and fifty dollars, for value received, with interest at six per cent. Discounted at 8%, May 13. JAMES BLAKE. HENRY SHAW. Interest on note for 6 mos. = $31.50. Amount of note when due is $1050 + $31.50 = $1081.50. Day of maturity, Aug. 13/16 Time to run, 3 mos. 3 dys. Discount on $ 1081.50, at 8%, for 3 mos. 3 dys. = $ 22.35. Proceeds, $ 1081.50 - $ 22.35 = $ 1059.15. Due Aug. 16; discount, $22.35; proceeds, $ 1059.15. Ans. Ex. 147. Find the day of maturity, the time to run, the discount, and the proceeds, on the following notes : 1. $2250. CONCORD, N.H., Jan. 1, 1885. Four months from date I promise to pay to the order of George Marston twenty-two hundred and fifty dollars, for value received. Discounted at 7%, Jan. 12. SIMON STEVENS. 2. $ 432.55. NEW YORK, Jan. 3, 1885. Sixty days from date I promise to pay James Wilson, or order, four hundred thirty-two and 15 dollars, value received. Discounted at 61%, Jan. 6. JOHN ALLEN. 3. $ 670.35. St. Louis, Jan. 6, 1885. Ninety days from date I promise to pay to the order of Peter Holmes six hundred seventy and 35 dollars, value received Discounted at 7%, Jan. 26. ROBERT Day. 4. $1304.90. CINCINNATI, Jan. 25, 1885. Five months after date I promise to pay to the order of John Shannon thirteen hundred four and 2 dollars, for value received, with interest at six per cent. Discounted at 41%, March 15. CHARLES HILLMAN. 5. $2260. . BALTIMORE, MD., June 19, 1885. Sixty days from date I promise to pay to the order of John Morrison twenty-two hundred and sixty dollars, value received. Discounted at 54%, July 16. FRANK HOWE. 6. $645. Austin, Tex., July 28, 1885. Thirty days from date I promise to pay to the order of John Moses six hundred and forty-five dollars, value received. Discounted at 6%, Aug. 3. RICHARD SMITH. 7. $1000. SAVANNAH, GA., Oct. 4, 1884. Six months after date I promise to pay to John Proctor, or order, one thousand dollars, value received, with interest at seven per cent. Discounted at 8%, Dec. 31. JAMES WHITRIDGE. 8. $2912.60. PHILADELPHIA, Feb. 19, 1885. Ninety days after date I promise to pay to the order of George Wright twenty-nine hundred twelve and 60 dollars, value received. Discounted at 6%, March 1. PETER BURKE. 9. $455.04. CHARLESTON, S.C., Sept. 2, 1885. Four months from date I promise to pay to the order of Edmund Horne four hundred fifty-five and tho dollars, value received. Discounted at 54%, Sept. 16. PAUL WEST. 10. $1140. NEW ORLEANS, LA., July 1, 1885. Ninety days after date I promise to pay to the order of William Whitridge eleven hundred and forty dollars, value received. · Discounted at 73%, Aug. 15. JOHN CLEMENT. 11. $10,089.25. Denver, COL., Oct. 14, 1885. Ninety days after date I promise to pay to the order of John Higgins ten thousand eighty-nine and 150 dollars, value received. Discounted at 10%, Dec. 1. JOHN KELLEY. |