MISCELLANEOUS PROBLEMS GROUP 1 1. From the equation PRT I, find R. = 2. By applying the formula, find I in the following: 3. By the cancellation method find the interest on the following: $98.60 for 72 da. at 6% $321.05 for 90 da. at 5% 5. By the 6% method find the interest on the following: $378.50 from Feb. 2, 1913, to April 10, 1913, at 6% $216.06 from 11/3/12 to 2/1/13 at 8% $7615.83 from Oct. 23, 1912, to Jan. 13, 1913, at 5% $70 from 1/3/13 to 4/19/13 at 7% $169.69 from 1/15/13 to 2/28/13 at 4% 6. By the interest table, p. 149, find the interest on the following: $1000 for 8 mo. 3 da. at 41% $300 for 3 mo. at 6% $279 for 1 mo. 15 da. at 5% $1628 for 1 yr. 2 mo. 11 da. at 51% $65 for 36 da. at 7% 7. Find the exact interest (p. 151) on: $1427 for 48 da. at 6% $216.60 for 37 da. at 61% $98.54 for 3 mo. 12 da. at 5% $13261.82 for 1 yr. 2 mo. 27 da. at 7% 8. Find, by the most convenient method for each, the interest on the following: $3726.81 from April 5, 1911, to June 3, 1913, at 6% $2200 from July 3, 1910, to Aug. 6, 1914, at 8% $125 for 9 mo. 22 da. at 4% 9. A man lent £ 2159 5s. 6d. at 6%. Find the interest yearly. 10. How much money must I invest at 5% in order to receive a semiannual income of $1268.50 ? GROUP 2 1. A man builds a house costing $3200. He pays $1400 cash and gives three equal notes for the balance due, payable in 1, 2, and 3 yr. respectively, with interest at 5%. If he pays all interest due at the end of each year, what amount does he pay at the end of each year in paying off the indebtedness? 2. A merchant bought a bill of goods on the following terms: 3% cash, net 90 da. At what rate can he afford to borrow money in order to pay cash? 3. A bank pays 3% interest on deposits amounting to $628,453.27; its loans average $1,462,817.61 at 5%, and $1,316,478.55 at 6%. What is the bank's yearly profit? 4. A city's bonded debt is $1,031,000. At 4%, what interest does it pay annually? 5. A merchant bought $5000 worth of goods, terms net 60 da. At the end of the 60 da. he had sold 75% of the goods at a profit of 20% on the cost, and the rest of them at cost. How much did he gain? 6. A gave his 60-da. note to a bank for $200 at 6% interest. If the bank deducts the interest in advance, how much does he receive for the note? 7. On April 1, 1910, A bought a bill of goods amounting to $1500. He gave his note for the amount, interest at 5%. How much did he pay at settlement, Nov. 15, 1910? 8. A company bought 1000 bales of cotton at $11.91 per bale, giving a 30-da. 5% note in payment. How much interest did it pay at maturity? 9. A farmer bought an 80-acre farm for $50 per acre. He paid $800 down, and gave four equal notes for the balance due, payable in 1, 2, 3, and 4 yr. respectively, interest at 6%, payable annually. How much did he pay at the end of each year until all the notes were paid ? 10. A railroad company buys 1000 gondola cars at $1000 each, giving in payment 20 series of 50 notes to each series, all dated July 1, 1913. One series matures at the end of each 6 months, and all bear interest at 6% per annum from date, interest payable semiannually. What amount must the company pay at the end of the first 6 months? at the end of the second 6 months? GROUP 3 1. A city authorizes the issuance of $350,000 10-yr. bonds at 4% for the purpose of building a viaduct. What amount must be paid to a sinking fund earning 3% in order to redeem the bonds at maturity? (Use table, page 156.) 2. A depositor has $1000 in the savings bank at 3% interest. He draws out the money and buys a lot which he sells 6 mo. later for $1100. If he pays $15 taxes on the lot, and $20 selling commission, what per cent does he make on his $1000 in excess of what it would have earned for him if left in the bank? 3. An electric light company borrows, on a 51% bond issue, $100,000 for extensions and improvements. What interest does it pay annually on the debt, and what amount must it deposit with the trustee of the sinking fund earning 41% to redeem the bonds in 5 yr.? 4. What is the difference between a checking and a savings account at a bank? 5. The bank clearings in New Orleans on a certain day were $1,841,109, as against $1,524,060 for the corresponding day the year before. What was the percentage of increase? 6. A coupon certificate of deposit for $600, drawing interest at 3%, is dated Oct. 28, 1912. If all the coupons are left attached, what is the value of the certificate on Aug. 3, 1913? 7. A cotton dealer sold 700 bales of cotton at $12.08 per bale, and accepted in payment a 90-da. note bearing interest at 5%. If he discounts the note at his bank at 5%, how much does he receive for it? 8. A bank discounts a 60-da. draft at 6%, allowing 5 da. for collection and return. If the face of the draft is $675.84, what are the proceeds, there being no charge for collection? (Time for collection and return must be added to time of draft.) 9. A jobber buys goods from a manufacturer to the amount of $27,600, and gives his note in payment for 4 mo. at 5%. The jobber sells the goods to customers at a profit of 12% on the cost, taking 60-da. 6% notes in payment. At the end of 60 da., receiving the money on his customer's notes, he discounts his note to the manufacturer at 6%. What is his profit on the transaction? 10. A, holding B's 7 % 60-da. note for $1200, has it discounted at the bank for the full time at 6%. At the end of 30 da., having idle funds, A buys the note back from the bank, discounting it at 6%. What net amount does A receive in interest? GROUP 4 1. A retail merchant sold out a stock of goods and invested 70% of the money in a farm which paid him a yearly rental of $600. If the rate of income on his farm investment is 83%, for what amount did he close out his stock? 2. The profits of a manufacturing business the first year are 40% of the capital employed; 75% of this gain is reinvested in the business for the 2d year. The 2d year shows a profit of 45% on the capital employed, and all this profit is allowed to remain in the business for the 3d year. What per cent of the original capital does the business start with for the 3d year? 3. What rate of commission is charged for selling goods for $562.25, the net proceeds of the sale being $541.17? 4. A bought a bill of goods to the amount of $640, terms 3%/10, net 30. In order to secure the 10-da. discount he discounted his 60-da. note at the bank at 6%. Find the face of the note. |