84990. 9. Brooklyn, N. Y., Api. 3, 1890. Ninety days after date, for value received, I promise to pay to the order of Dewitt Long www. Four thousand nine hundred and twenty Dollars, at the Merchant's Bank, with interest. Elizabeth B. Prentiss Discounted at date at 6%. 10. $1312. Sixty days after date, for value received, I promise to pay to the order of Boston, Mass., May 1, 1892. Edgar H. Wilson One thousand three hundred and twelve Dollars, at the First National Bank. Discounted May 10 at 4%. Frank L. Barker 11. $9142.84. Albany, N. Y., Dec. 15, 1896. Five months after date, for value received, I promise to pay Two thousand one hundred forty-two & Dollars, with interest, at the Park Bank. Discounted Feb. 27, 1897, at 6%. 100 R. A. Dixon $2000. 12. San Francisco, Cal., June 10, 1896. Three months after date, for value received, I promise to pay Seymour D. Wilcox mor order, Two thousand Dollars, at the Citizen's Bank. Discounted July 10 at 8%. 13. $2500 of m P. J. Reed · July 6, 1896. Syracuse, N. Y., July Two months after date, I promise to pay to the order Two thousand five hundred Dollars, at the Third National Bank. Discounted at 6% at date. John Q. Adams 14. A note for $135 is given for 90 days, and discounted the day it is given at 6%. What are the proceeds? 15. William Johnson gave John Doe a note payable to the Binghamton Trust Co., time 60 days, amount $204.60. Write this note. After 20 days Doe put the note in the bank. What are the proceeds of the note? In the following problems, write the notes in full, and properly indorse them, using any names for payer and payee. 16. Find the bank discount of $400 for 3 months at 8%. 17. What are the proceeds of $250, with interest at 6%, discounted at bank for 60 days at 6% ? 18. What will be the proceeds of a note for $175 drawn at 4 mo., with interest at 6%, if the bank discount is 10% per annum? 19. On the first day of January, 1896, a farmer gave his note at 90 da. for $525, with interest at 6%. When did the note become due? and what were the proceeds of the note if discounted at a bank at 1% a month on the tenth day of February? 308. To find the Face of a note, when the Proceeds, Time, and Rate are known. 1. What must be the face of a 60-day note, without grace, which after being discounted at 6% will give $500 as proceeds? SOLUTION. The bank discount of $1 at 6% for 60 da. = $.01. Since $.99 is the proceeds of $1, $500 must be the proceeds of as many dollars as $.99 is contained times in $500 505.05+ Ans. Therefore, $505.05 must be the face of a 60-day note which will give $500 as proceeds after being discounted at 6%. Rule. Divide the proceeds by the proceeds of $1. 2. A person must use $250 to-day. For how much must he make a bank note for three months that will give $250 proceeds, without grace? 3. What must be the face of a 60-day note, payable at a Boston bank, upon which I can realize $350 after it is discounted at 6% ? 4. If you buy goods for $1200 cash, how large a note payable in 90 days, at 6% bank discount, must you make that the proceeds shall pay for the goods? Without grace. 5. Find the face of a 60-day note that will yield $800 when discounted at bank at 7%, with grace. 6. How large a note must I make at a bank for 30 days to pay a debt of $475, without grace? 7. Wishing to borrow $494.90 at a Syracuse bank, for what must I make my note at 60 da., with interest at 6%, in order to obtain this amount? Discount at % a month. 8. The proceeds of a Buffalo note at 60 da., when discounted at a bank at 6% per annum, is $742.50. What is the face? REVIEW OF DISCOUNT. 309. 1. Define Discount; True Discount; Bank Discount; Proceeds; Present Worth. 2. How is the present worth found? The true discount? The bank discount? The proceeds? 3. What is the term of discount? and how is it found? The day of discount? and how found? 4. How is the bank discount of an interest-bearing note found? 5. How do you find the face of a note when the proceeds, time, and rate are given? 6. When does a Rochester, N.Y., note mature if given for 1 month from Jan. 31 ? 7. State a point of difference between true discount and bank discount. 8. What kind of notes only can be discounted at banks? 9. Bought a city lot, and agreed to pay $546.94 at the end of 2 yr. 6 mo., without interest. Receiving some money unexpectedly after 6 months, I wish to pay cash. How much ought I to pay, money being worth 6% ? 10. What is the present value and true discount of $973.52, due in 1 yr. 7 mo. 24 da. hence, without interest, money being worth 8% ? 11. A man has an offer of $2000 cash for his house, or $2100 payable in 8 months. If money is worth 8%, which is the better? and how much? 12. Find the discount and proceeds of a note for $13500 payable at a bank in 90 days after date without grace, discounted at 5%. 13. For what sum must C. F. Norton draw his note on a Binghamton bank, that when it is discounted at 4% for 60 days he will have $800? 14. A man owes me $2540, due in 2 years, 3 months, without interest. If he pays it at once, what discount should I allow him? 15. Find the discount and proceeds of a note on a Brooklyn bank for $350, given May 12, 1896, for 4 months, and discounted at 6%, July 15. $860. 16. Syracuse, N. Y., May 5, 1896. Three months after date, for value received, promise to pay. R. B. White I Whitemor order, Eight hundred sixty Dollars, with interest, at the Salt Springs National Bank. Discounted June 11 at 6%. A. E. Barrette 17. For what sum must I draw a 4 months' note so that the proceeds will be $800, discounted without grace at 6%? 18. I sell my horse for $216, and take a note due in 6 months without interest. If money is worth 6% per annum, what is the present value of my note ? |