ANOTHER METHOD FOR INTEREST. ART. 223. To find the interest of $1, at 6 %, for any time. At 6 %, the Int. of $1 for 1 year, (12 mon.) is 6 cts. $.06 For 1 mon. it will be ct., or 5 mills. For 2 mon., For 3 mon., For 4 mon., 2=1 cent. 3=112 cents. .005 .01 .015 .02 = m. $.000 4-2 cents. (And so on.) Again, since 30 days=1 mon. For 1 da. the Int. is of ct.& ct. = ct. Hence, to find the Interest of $1, at 6 %, for any time, Take as many cents as equal half the even number of months; take 5 mills for each odd month, 1 mill for each six days, and one sixth of a mill for each remaining day. 1. Find the Int. of $1, for 9 mon. 12 da. at 6 %. SOLUTION. The preceding shows that the Int. for 8 months is 4 cents; for 1 mon., 5 mills; for 12 da., 2 mills; the sum of these is $.047, the required Int. $.04 .005 .002 Ans. $.047 2. Find the Int. of $1 for 17 mon. 23 da., at 6 %. SOLUTION. For 16 mon. the Int. is 8 cts.; for 1 mon., 5 mills; for 18 da., 3 mills; for 5 da., & of a mill; their sum is $.088, the required Int. REVIEW.-223. How find the Int. of $1 at 6 per cent. for any time? Why? ART. 224. To find the interest of any sum, at 6%, for any given time. The interest of $2 is twice as much as the Int. of $1 for the same time; of $3, three times as much, and so on. Hence, the Rule for Finding the Interest at 6 %.-Find the interest of $1 at 6 per cent. for the given time (Art. 223), then multiply this by the given sum; the product will be the required Int. 1. Find the interest of $69, for 6 mon. 8 da., at 6 %. SOLUTION. The interest of $1 for 6 mon. 8 da., at 6 per cent. (Art. 222), is $.031} As the Int. of $69 will be 69 times that of $1, for the same time, multiply the Int. of $1 by 69, to obtain the result. $.0311 69 279 186 23 Ans. $2.162 3. $36.00 for 11 mon. ANSWERS. $2.60 $1.98 4. $28.00 for 1 yr. 4 mon. (16 mon.) $2.24 5. $500.00 for 2 yr. 1mon. $62.50 6. $75.00 for 4 mon. 12 da. $1.65 9 mon. 23 da. $9.083 8. $125.00 for 9. $210.25 for 10. $134.45 for 11. $144.24 for 1 yr. 2mon. 12 da. $9.00 3 yr. 4 mon. 24 da. $42.891 1 yr. 5 mon. 15 da. $11.764+ 2yr. 3mon. 19 da. $19.929+ ART. 225. From the illustrations in Art. 223, two rules are derived: the 2d is often used. Rule I.-Since the Int. of $1 at 6 %, for 1 mon. is half a cent, to find the Int. of any sum at 6 % when the time is mon., Multiply the sum considered as dollars, by half the number of mon., the product will be the Int. in cents. Rev.-224. How find the Int. of any sum at 6 per cent. for any time? of a Rule II.--Since the Int. of $1, at 6 %, for 1 da. is ct., to find the Int. of any sum.at 6 %, when the time is da., Multiply the sum considered as dollars, by the number of da., and divide the product by 60; the quotient will be the Int. in cts. REM.-1. In applying Rule 1, when the time is years and months, reduce to months. When the time is days, and either months or years, or both, find the Int. for the days separately, or, reduce the whole to days, and then find the Int. 2. Reduce the result obtained to dollars, by removing the decimal point two places toward the left. Art. 184. 3. The Int. of any sum at 5 per cent. is § of the Int. at 6 pr. ct.; at 7 pr. ct., of 6 pr. ct., and so on. Hence, to find the Int. of any sum, at any rate, first find the Int. at 6 per cent., multiply this by the given rate, and divide the product by 6. Art. 152. PARTIAL PAYMENTS ON BONDS, NOTES, &c. ART. 226. When partial payments have been made, the following rate for computing the Int., adopted by the Supreme Court of the U. States, is regarded THE LEGAL RULE FOR PARTIAL PAYMENTS. "When partial payments have been made, apply the payment, in the first place, to the discharge of the interest then due. แ If the payment exceeds the Int., the surplus goes toward discharging the principal, and the subsequent Int. is to be computed on the balance of principal remaining due. 'If the payment be less than the Int., the surplus of Int. must not be taken to augment the principal, but Int. continues on the former principal, until the period when the payments, taken together, exceed the Int. due, and then the surplus is to be applied toward discharging the principal; and Int. is to be computed on the balance, as aforesaid."-KENT. C. J. REM. A PARTIAL PAYMENT, is payment of part of a note, or other obligation, which payment should be indorsed upon it. The rule is founded on the principle, that neither interest nor payment shall draw interest. 1. $350. Boston, July 1st, 1845. For value received, I promise to pay to Edward Sargent, or order, on demand, Three hundred and fifty dollars, with interest at 6 %. LOWELL MASON. On this note the following payments were indorsed : Oct. 1st, 1846, rec'd $10. Jan. 1st, 1847, rec'd $26. What was due, on settlement, March 16th, 1848? Int. continued on bal. from Oct. 1st, 1846, to 1.20 4.80 6.00 326.00 26.00 $300.00 $16.50 15.00 Int. continued on bal. from Dec. 1st, 1847, to 7, to 5.25 6.75 $306.75 Amount due Jan. 1st, 1847, Deduct 3d payment, (greater than Int. due,) Balance due, on settlement, March 16th, 1848, SUGGESTION. When any payment is less than the Interest on the principal or balance up to the time of payment, shorten the operation by deferring the computation of Int. until the payments, taken together, exceed the Int. due. Thus, in the above operation, instead of computing the Int. Oct. 1st, 1846, it might have been REVIEW.-225. When the rate is 6 per cent., how find the interest when the time is months? When days? REM. How may the interest at any rate be found by Rules 1 and 2? Why? 226. What is the legal rule for partial payments? deferred till Jan. 1st, 1847. The whole Int. then, would have been $16, which, added to $320, the preceding balance, $336. 2. A note of $200 is dated Jan. 1, 1845, on which there is paid, Jan. 1, 1846, $70: reckoning interest at 6%, what was due Jan. 1, 1847? Ans. $150.52 3. A note of $300 is dated July 1st, 1843. Int. 6 %. Indorsed, Jan. 1, 1844, $109. What was due Jan. 1st, 1845? July 1, 1844, $100. 4. A note of $150 is dated May 10th, 1850. Int. 6 %. Indorsed, Sept. 10, 1851, $32. Sept. 10, 1852, $6.80 What was due Nov. 10th, 1852? Ans. $132.30 5. A note of $200 is dated Mar. 5th, 1841. Int. 10 %. Indorsed, June 5, 1842, $20. What was due June 5th, 1844? Dec. 5, 1842, $50.50 6. A note of $250 is dated Jan. 1st, 1845. Int. 7 %. Indorsed, June 1, 1845, $6. What was due July 1st, 1846? Jan. 1, 1846, $21.50 Ans. $248.40 7. A note of $180 is dated Aug. 1st, 1844. Int. 6 %. Indorsed, Feb. 1, 1845, $25.40 Jan. 1, 1846, $30. What was due July 1st, 1846? Aug. 1, 1845, $4.30 Ans. $138.535 8. A note of $400 is dated March 1st, 1845. Int. 6%. 10. A note of $1000 is dated Jan. 1st, 1840. Int. 6 %. Indorsed, May 1, 1840, $18. Dec. 16, 1840, $ 15. Sept. 4, 1840, $ 20. What was due, Oct. 1st, 1843? Ans, $663.80 July 13, 1841, $118. |