1. Copy, extend, and find the amount of the above bill. 2. How much must Mr. Collins remit if paid in 10 days or less?

3. How much if paid in 30 days? 4. How much if paid in 60 days?

* 1 piece of muslin containing 52 yd. @ 6¢ a yard. +4 dozen balls @ 65¢ a dozen.

a, b, c, d, etc. The sum of a, b, and c should appear at d; f is the discount, is e less the discount.

Tax Extension.

Tax extension clerks compute what each property holder must pay for the several purposes for which taxes are exacted. To aid in doing this work extensive tables are usually provided by which the tax on any assessed value at any given rate may be found without arithmetical process, by mere reference to the tables. Such tables cannot be presented within the limits of an ordinary arithmetic.

In the tax extension required on page 292, the following substitute for these tables may be employed to advantage. This table shows the tax on any number of hundred dollars from 1 to 9. It is apparent that the tax on any number of thousands of dollars would be ten times as much as the amount shown in the table; on any number of tens of dollars, one tenth as much, etc. "R. & B." stands for Road and Bridge; "Lib.," for Library.

TAXES IN SCHOOL DISTRICT No. 4, AURORA, ILL.

* In many states it is provided by law that " In the extension of taxes, the fraction

of a cent shall be extended as 1 cent."

TAXES IN SCHOOL DISTRICT No. 4, AURORA, ILLINOIS.

In the Bank.

INTEREST ON DAILY BALANCES.

Sometimes a person who has a large but constantly varying sum of money which he wishes to keep on deposit in some reliable bank, can arrange with the bank officials to receive at the end of each month 2% or more on his daily balances. The accountant at the bank ordinarily employs carefully prepared tables for computing the interest due a depositor. Regarding 360 days as a year, accounts like the following can easily be computed without the aid of interest tables.

1. Make an enlarged copy of the above account and extend the balances and interest for the month of May. Compute the interest at the rate of 2% per annum.

*Mr. Smith is entitled to interest on $5000 from Apr. 1 to Apr. 5, 4 days. (5000 × 4 = 20000.) This equals the interest on one dollar for 20000 days. Hence "20000" is carried into the interest column.

+ In computing interest on daily balances, it is customary to omit any fraction of a dollar that may appear in the principal. In some banks interest is computed on full hundreds of dollars only; thus, if the balance is $5742, interest is allowed on $5700.

The interest on $1.00 for 160745 days at 6% is (160745÷6) 26790 mills; at 2% it is one third this number (26790÷3) or 8930 mills. This equals $8.93.

6)160745+
3)26790 mills.

8930 mills.

Interest on Daily Balances.

Rule paper as suggested on the preceding page, arrange in proper form the accounts given below, and find the balance of each account on the last day of the month, allowing interest on daily balances at the rate of 2% per annum.*

1.

FLORIAN CAJORI.

June 1, deposited $8000. June 6, deposited $400.

June 10, deposited $500 and withdrew $175.50.

June 18, withdrew $248.50. June 20, withdrew $675.20. June 25, deposited $100 and withdrew $241.20.

June 30, deposited $200.

2.

ARTHUR LEFEVRE.

May 6, deposited $4270. May 7, withdrew $342.50.
May 12, deposited $200 and withdrew $525.37.
May 31, deposited $500 and withdrew $1246.20.

3.

W. K. CLIfford.

July 4, deposited $25240.16.
July 6, withdrew $2375.50.
July 8, withdrew $537.25.
July 15, withdrew $146.31.

4.

July 5, withdrew $1381.20.
July 7, withdrew $2150.45.
July 9, withdrew $2150.45.
July 25, withdrew $322.15.

MCLELLAN AND DEWEY.

Aug. 10, deposited $10000. Aug. 15, deposited $5000.

Aug. 20, deposited $3000.

Aug. 24, deposited $6000. Aug. 30, deposited $1000 and withdrew $3246.54.

*These problems are mainly for a test of the ability of the student to work in figures with care and to secure accurate results. Let no pupil be satisfied with his self-training in this respect unless he can do all the work suggested on this page, and present it to his teacher in good form and absolutely free from errors in figures. Unless he can do this, he would, with his present attainments, be of little value as an accountant. The business world demands accuracy in accounts.