6. What is the interest on $1000 from June 20th to August 13th, interest being 7 per cent.? Ans. $10.356. 7. What is the interest on $730 from July 4th to December 25th, interest being 6 per cent.? Ans. $20-88. 8. What is the interest on $63.37 from August 9th to December 31st, interest being 7 per cent,? Ans. $1.75. PARTIAL PAYMENTS. * 115. WHEN notes, bonds, or obligations receive partial payments, or indorsements, the rule adopted by the Supreme Court of the United States is as follows: RULE. "The rule for casting interest, when partial payments have been made, is to apply the payment, in the first place, to the discharge of the interest then due. If the payment exceed the interest, the surplus goes towards discharging the principal, and the subsequent interest is to be computed on the balance of principal remaining due. If the payment be less than the interest, the surplus of interest must not be taken to augment the principal; but interest continues on the former principal until the period when the payments taken together exceed the interest due, and then the surplus is to be applied towards discharging the principal; and interest is to be computed on the balance, as aforesaid.” The above rule has been adopted by New York, Massa * From a Latin phrase, in dorso, meaning "upon the back;" because the pay sents are written across the back of the note. chusetts, and by nearly all the other states of the Union. The following is the CONNECTICUT RULE. “Compute the interest on the principal to the time of the first payment; if that be one year or more from the time the interest commenced, add it to the principal, and deduct the payment from the sum total. If there be after payments made, compute the interest on the balance due to the next payment, and then deduct the payment as above; and in like manner, from one payment to another, till all the payments are absorbed; provided the time between one payment and another be one year or more. But if any payments be made before one year's interest hath accrued, then compute the interest on the principal sum due on the obligation, for one year, add it to the principal, and compute the interest on the sum paid, from the time it was paid up to the end of the year; add it to the sum paid, and deduct that sum from the principal and interest added as above. If any payments be made of a less sum than the interest arisen at the time of such payment, no interest is to be computed, but only on the principal sum for any period" $620. EXAMPLES. UTICA, Nov. 1, 1837. 1. For value received, I promise to pay Thomas Jones, or order, the sum of six hundred and twenty dollars, on demand, with interest. CHARLES BANK, The following indorsements were made on this note: 1838, Oct. 6, there was indorsed. 1839, March 4, $61.07. 1839, Dec. 11, " 1840, July 20, What was the balance due, Oct. 15, 1840, allowing 7 per cent. interest, according to the U. S. rule? The pupil will find it convenient to arrange the work for finding the multipliers at 6 per cent. as follows: Having found the different intervals of time, we then find the multipliers at 6 per cent. by CASE III. ART. 113. As a check upon our work, we add all the different intervals of time together, and find it makes 35 months and 14 days. We also add all the multipliers, and obtair 0.1771. Now, subtracting the time the note was given from the time of settlement, we also obtain 35 months and 14 days, which time gives 0·1774 for multiplier. It would be well in all cases where interest is to be cast on a note of many indorsements, to follow the above method of operation; since, by proceeding with systematic order, there is less chance for committing errors. If we wish to have the result true to a cent, we must carry our work to three decimal places, or to mills. In the following operation we extend the work to three decimal places; when the value beyond the third place is one half or more, we add a unit to the decimal in the third place, but when that value is less than one half, we neglect it. Having found the multipliers, we continue the work as follows: The amount of note, or principal, is $620.000 Interest on the same, up to Oct. 6, 1838, is Interest from Oct. 6, 1838, to March 4, 1839, is 17.247 Interest from March 4, 1839, to Dec. 11, 1839, is 28-414 Interest from Dec. 11, 1839, to July 20, 1840, is 19-085 4.409 Ans. 271-171 UTICA, May 1, 1836. Interest from July 20, 1840, to Oct. 15, 1840, is $350. 2. For value received, I promise to pay Isaac Clark, or order, three hundred and fifty dollars, with interest, at 6 per cent. N. BROWN. Indorsements were made on this note as follows: Dec. 25, 1836, there was paid June 30, 1837, $50. |