II. In the United States' Court, and in most of the Courts of the several States, the following rule is adopted for estimating the interest on notes and bonds, when partial payments have been made. RULE. Compute the interest on the principal sum, from the time when the interest commenced to the time when the first payment was made, which exceeds, either alone or in conjunction with the preceding payments, if any, the interest at that time due; add that interest to the principal, and from the sum subtract the payment made at that 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 the same manner to the time of judgment. This rule is illustrated in the following question. 1. $365.50. Lynn, Jan. 1, 1842. For value received, I promise to pay John Dow, or order, on demand, three hundred sixty-five dollars fifty cents, with interest. Attest, Samuel Webster. John Smith. Dec. 2, 1845. Received one hundred dollars. What remains due Jan. 7, 1847 ? OPERATION. Ans. $92.53. Principal carrying interest from Jan. 1, 1842, to Interest from Jan. 1, 1842, to June 10, 1842, June 10, 1842 5 months 9 days First payment, June 10, 1842 Balance for new principal $365.50 9.68 Amount 375.18 50.00 325.18 Balance for new principal (brought over) Interest from June 10, 1842, to Dec. 8, 1842, 325.18 5 months 28 days 9.64 Amount 334.82 Second payment, Dec. 8, 1842 30.00 Balance for new principal 304.82 Interest from Dec. 8, 1842, to Sept. 25, 1843, 9 months 17 days 14.58 Amount 319.40 Third payment, Sept. 25, 1843 60.00 Balance for new principal 259.40 Interest from Sept. 25, 1843, to July 4, 1844, 9 months 9 days 12.06 Amount 271.46 Fourth payment, July 4, 1844 90.00 Balance for new principal 181.4€ Interest from July 4, 1844, to Dec. 2, 1845, Interest from Dec. 2, 1845, to Jan. 7, 1847, a sum greater than the interest, } 100.00 110.00 86.82 5.71 $92.53 Bradford, Jan. 10, 1836. For value received, I promise to pay James Jones, or order, on demand with interest after three months, one thousand dollars. John Snow. Attest, L. True. On this note are the following indorsements. July 4, 1836. Sept. 25, 1838. March 9, 1839. April 7, 1840. Received one hundred dollars. What is due Jan. 10, 1842 ? Ans. $232.26. 3. $1666. Newburyport, June 5, 1838. For value received, I promise to pay John Boardman, or order, on demand, one thousand six hundred sixty-six dollars with interest. John J. Fortune. COMMISSION and BROKERAGE, are compensations made to factors, brokers, and other agents, for their services, either for buying or selling goods. NOTE. A factor is an agent, employed by merchants residing in other places, to buy, and sell, and to transact business on their account. A broker is an agent employed by merchants to transact business. RULE. The questions are performed in the same manner as in interest. 1. What is the commission on the sale of $5678 value of cotton goods, at 3 per cent. ? Ans. $170.34. 2. A broker sells goods to the amount of $7896, at 2 per cent., what is his commission ? Ans. $157.92. 3. My agent in Lowell has purchased goods for me to the amount of $1728, what is his commission, at 1 per cent. ? Ans. $25.92. 4. My factor advises me, that he has purchased, on my account, 97 bales of cloth, at $15.50 per bale; what is his commission, at 2 per cent. ? Ans. $37.58+. 5. My agent, at New Orleans, informs me, that he has disposed of 500 barrels of flour at $6.50 per barrel, 88 barrels of apples at $2.75 per barrel, and 56 cwt. of cheese at $10.60 per cwt. ? what is his commission, at 3 per cent. ? Ans. $153.21. NOTE. To estimate the duties on imported goods is performed in the same manner as interest, except when the duties are so much per ton, yard, &c. 6. What is the duty on $8000 value of imported goods, at 20 per cent. ? Ans. $1600. 7. What is the duty on 50 tons of iron, at $30 per ton? Ans. $1500. Section 36. INSURANCE AND POLICIES. INSURANCE is a security, by paying a certain sum to indemnify the secured against such losses, as shall be specified in the policy. Policy is the name of the writ, or instrument, by which the contract or indemnity is effected between the parties. The same as in interest. RULE. 1. What is the premium on $868, at 12 per cent. ? Ans. $104.16. 2. What is the premium on $1728, at 15 per cent. ? Ans. $25.92. 3. A house, valued at $3500, is insured at 12 per cent.; what is the premium ? Ans. $61.25. 4. A vessel and cargo, valued at $35000, is insured at 33 per cent.; now, if this vessel should be destroyed, what will be the actual loss to the insurance company? Ans. $33687.50. Section 37. STOCKS. STOCKS is the general name used for funds, established by government or individuals, in their corporate capacity, the value of which is often variable. The method for computation is the same as in interest. 1. What must be given for 10 shares in the Boston and Portland Railroad, at 15 per cent. advance, shares being $100 each? $100 X 10 = $1000; $1000 X 1.15 $1150 Ans. 2. What must be given for 75 shares in the Lowell Railroad, at 25 per cent. advance, the original shares being $ 100 each ? Ans, $9375. 3. What is the purchase of $8979 Bank stock at 12 per cent. advance ? Ans. 10056.48. 4. What is the purchase of $1789 Bank stock at 9 per cent. below par ? Ans. 1627.99. Section 38. BANKING. When a note is discounted at a bank, the interest is taken at the time the note is given, and the interest is computed for 3 days more than the time specified in the note; that is, if the note is given for 60 days, the interest is taken for 63 days; for the law allows three days to the debtor, after the time has expired for payment, which are called days of grace. If, therefore, a note is given to the President and Directors of the Merrimack Bank for $100, to be paid in 60 days, the interest on the $100 is computed for 63, and taken from the sum of the note. So that the borrower receives only $98.95 for the note discounted. |