1. How much did the owner of a $500 note receive for it if he had it discounted 45 da. before it was due at 6%? 2. What were the proceeds of a note for $80, discounted 36 da. before maturity at 6%? 3. Find the proceeds of a 60-day note for $580, dated Oct. 15, and discounted on Oct. 15 at 6%. 4. Mr. Lester F. Hart had a note for $160, dated May 5, due in 90 da. He had it discounted on the day it was drawn at 6%. Find the proceeds. 5. Mr. Louis Field sold a bill of goods for $250 to Mr. Charles Sanders, who gave his note for the amount, due in 3 mo., dated Mar. 16. Mr. Field had the note discounted immediately at 5%. How much did he get for it? 6. Mr. Allison had the following note discounted on Mar. 18 at 6%. How much did he receive? 7. How much would the holder of a 3-month note for $250, dated Apr. 10, receive for it if he had it discounted May 20 at 6%? 8. A note for $560.50, due in 90 da., is discounted 36 da. after date at 6%. What are the proceeds? 9. How much can I get for a 60-day note for $460, discounted 10 da. after it is drawn at 5%? 10. L. B. Barton had a note for $750 dated May 9 and due He had it discounted 1 mo. after date at 6%. How much did he receive? in 3 mo. Interest-bearing Notes Example: Find the bank discount and the proceeds of a note for $1000 dated Apr. 7, due in 3 mo. with interest at 4%, and discounted May 8 at 6%. Unless you read the problem very carefully and note what is required and what is given you are likely to make mistakes. Before dropping your pencil check your work. 1. Make out a note for $500 dated to-day, payable in 60 da. at some bank in your neighborhood. The payee is Ralph Dodge; the maker, John Hancock. 2. If Mr. Dodge had the note discounted to-day at 6%, how much did he receive for it? 3. If this note were a note bearing interest at 6%, how much would Mr. Dodge have received for it on the day of maturity? 4. Find the amount due on July 18, 1921, on a demand note of $400, dated Nov. 15, 1920, with interest at 5%. 5. On May 15 Mr. Alexander borrowed $5000, for which he gave his note with interest at 4%, due in 6 mo. How much was due at maturity? 6. If the holder of this note had discounted it at 6% on Sept. 16, how much would he have received for it? 7. On June 14 Louis Stevenson made out a demand note for $1000 payable to Richard Gardner, with interest at 5%. How much did Mr. Gardner receive if payment was made on Feb. 21 of the following year? 8. A 6-month note for $1500, dated May 16, was given in payment of a bill of goods. It bore interest at 5%. What was the amount due on it? 9. What were the net proceeds of a note of $620 discounted 24 da. before it was due, at 6%? 10. Find the proceeds of a note for $1500, dated April 5, due in 60 da. and discounted 20 da. before maturity at 6%. 1. On June 9 Guido Romano imported the following: 20 boxes macaroni, 10 lb. each, at lira per pound lira per pound at 9 lire per gallon If the duty on macaroni and spaghetti is 1¢ per pound and on olive oil 30¢ per gallon, what was his total cost in United States money? (Use the approximate normal value.) 2. On June 20 he borrowed $6000 from his bank on his note for 3 mo., which was discounted at once at 6%. What discount did he pay the bank? 3. He sold the macaroni at 20¢ a pound and the olive oil at 80¢ a quart, less 2% discount. How much did he receive for the macaroni and the olive oil? 4. He imported 500 kilos of cheese at 4 lire a kilo. What was his total cost in United States money, if the duty on cheese was 20%? (Use the approximate normal value.) 5. He sold the cheese at 60¢ a pound. What per cent of profit did he make? (See the chapter on Business Forms, pages 167–176.) 1. What is a bill? 2. What are the terms of a bill? 3. What is meant by debtor? by creditor? [Without pencil] 4. Mention two forms used for writing names of the debtor and the creditor on a bill. 5. What is an invoice? 6. In what two common ways are receipts made out? 7. What should one do when receipting a bill for another person? 8. Why is it wise to keep receipted bills or receipts? 9. Why should bills and receipts be dated? 10. What is a statement? 2. Write bills for Andrew F. Tomlinson for the following, and find the net amount due, if the given terms are accepted: a. To Samuel Curtis -Terms: 6/30 15 pieces cloth, 221 yd. each, at $3 a yard |