RULE. Consider the number of dollars given so many cents, and reduce these cents to dollars again by removing the point of separation two places to the left; the result will be the interest of the given sum for 60 days. Then, if the given days be more i or less than 60, add to, or subtract from, the interest of 60 days, such parts of itself as the given days require. Ex. 1. What is the interest of $450.82 for 93 days, at 6 per cent. per annum? SOLUTION. 4.5082 2.2541 interest for 60 days. (See the rule.) 22541=interest for 3 days, being $6.98771=interest for 93 days. 2. What is the interest of $4562 for 45 days, at 6 per cent. per annum? 22.81 interest of 30 days, or one half the int. of 60 days. 11.405=interest of 15 days, or one half the int. of 30 days. $34.215 interest of 30+15=45 days. In computing by this rule, 12 months of only 30 days each, are allowed for the year, equal to 360 days. It consequently gives part more than 6 per cent. interest. On small sums, and for short intervals, however, the difference is trifling. 3. What is the interest of $420.72 for 120 days, at 6 per cent. per annum ? Ans. $8.414.+ 4. What is the interest of $56.74 for 25 days, at 6 per cent. per annum? Ans. $0.236.+ 5. What is the interest of $156.36 for 96 days, at 6 per cent. per annum? Ans. $2.50.+ 6. What is the interest of $1000 for 29 days, at 6 per cent. per annum? Ans. $4.833.+ 7. What is the interest of $204 for 40 days, at 6 per cent. per annum? Ans. $1.36. 8. What is the interest of $472 for 18 days, at 6 per cent per annum? Ans. $1.416. Banking. When a promissory note is presented at a banking institution, if properly endorsed or otherwise secured, it is received by the officers of the bank as security, and so much money in their own notes is given in return as is equal to the face of the note after the interest is deducted for 3 days more than the whole time till payment is promised. Hence, if the time specified be 60 days, the interest on the face of the note for 63 days is deducted, and the balance drawn from the bank; then at the expiration of the 63 days, the whole face of the note is due. The 3 days added to the specified time of payment, are called "days of grace." The preceding rule is, therefore, a convenient one for banking institutions. In solving the following sums, the scholar will allow "3 days of grace," that is, he will find bank discount for 3 days more than are specified in the sum. Ex. 1. What is the bank discount on $256 for 30 days, and grace? SOLUTION. 2.5 6 discount for 60 days. 1.2 8-discount for 30 days. $1.4 0 8 required discount. Therefore, $256-$1.408=$254.592, the sum to be drawn from the bank. 2. How much money would be drawn from the bank on a note of $650, payable in 90 days? 6.50=discount for sixty days. 3.2 5 discount for thirty days. .3 2 5 discount for three days. 10.075 discount for ninety-three days. Therefore, $650-$10.075=$639.925, the money to be drawn. 3. What is the bank discount on $1056.29 for 30 days, and grace? Ans. $5.81. 4. What is the bank discount on $756 for 90 days, and grace? Ans. $11.718. 5. What is the bank discount on $676.19 for 25 days, and grace? Ans. $3.155.+ 6. How much money may be drawn on a note of $692, payable 70 days after date, if discounted at a bank? Ans: $683.581. 7. How much money may be drawn on a note of $1567.89, payable 120 days from date? Ans. $1535.748. 8. What is the bank discount on $542.78 for 90 days, and grace? Ans. $8.413.+ 9. What is the bank discount on $195.77 for 60 days, and grace? Ans. $2.055.+ 10. How much money may be drawn on a note of $726, payable 80 days from date? Ans. $715.957. CASE 5th.-WHEN THE MONEY ON WHICH THE INTEREST IS TO BE CAST, IS IN POUNDS, SHILLINGS, AND PENCE. RULE. Reduce the shillings and pence to the decimal of a pound, (see Case 3d, Decimal Fractions,) and cast he interest in the same manner as when the principal consists of dollars, cents, and mills. The decimal part of the answer may then be reduced to shillings and pence by Case 4th, Decimal Fractions. Ex. 1. What is the interest on 42 £. 16 s. 6 d. for 1 year and 6 months, at 6 per cent. per annum? 8 2 5 the decimal value of 16 s. 6d. 1 yr. 6 mo. 18 months, and 18-2-9, the per cent. for the whole time. Therefore, 4 2.825 £. .09 3.8 5 4 2 5 £.=interest in pounds and decimals. To find the value of the decimal: .85425 20 17.085 00 12 1.02000 The answer, therefore, is 3 £. 17 s. 1 d. 2. What is the interest of 55 £. 15 6 d. for 2 years, 6 months, at 6 per 55 £. 15 s. 6d. cent.? 55.775 £. And 2 yr. 6 mo.=30 months= 3.6 0 0 0 0 farthings. Therefore, 8£. 7 s. 3 d. 3 qr. Ans. 3. What is the interest of 21 £. 18 s. 4 d., for 3 years and 4 months, at 6 per cent.? Ans. 4 £. 7 s. 8 d. 4. What is the amount of 156 £. 9 s. 3 d. for 1 year and 9 months, at 6 per cent. ? Ans. 172 £. 17 s. 9 d. 3 qr.+ 5. What is the amount of 27 £. 2 s. 6d. 3 qr. for 1 year and 10 months, at 6 per cent.? Ans. 30 £. 2 s. 2 d. 3 qr.+ 6. What is the interest of 36 £. 15 s. for 2 years and 3 months, at 6 per cent.? Ans. 4 £. 19 s. 2 d. 2.8 qr. 7. What is the interest of 45 £. 10 s. for 8 months, at 6 per cent. ? Ans. 1 £. 16 s. 4 d. 3.2 qr. 8. What is the interest of 9 £. 12 s. 6 d. for 2 years, 4 months, and 12 days, at 6 per cent.? Ans. 1 £. 7 s. 4 d. + CASE 6th.-WHEN INTEREST IS REQUIRED ON NOTES OR BONDS ON WHICH PARTIAL PAYMENTS HAVE BEEN MADE. RULE.-Cast the interest on the principal at the given rate per cent. up to the time of the first payment; then, if the payment exceed the interest, deduct the excess from the principal; but if it be less, set both payment and interest aside, and cast the interest on the same principal to the time of the next payment, or to the time of some payment, which, when added to the preceding payments, will exceed the sum of interest then due, and deduct the sum of these payments from the amount of the principal. The remainder will form a new principal, with which proceed as before, till the time of settlement. 1. For value received, I promise to pay A. B. & Co., or order, fifteen hundred dollars on demand, with interest. Jan. 1, 1825. JOHN JAMES. On this note are the following endorsements: Oct. 1, 1825, three hundred dollars. July 1, 1827, four hundred and fifty dollars. Sept. 1, 1828, six hundred and fifty dollars. was due on settlement, July 1, 1830? What $1500.00 The principal on interest from Jan. 1, 1825, The payment being more than the interest, deduct it, 1567.50 300.00 1267.50 The interest from Oct. 1, 1825, to July 1, 1827, 1 yr. and 9 mo. 133.87 1400.587 Deduct second payment, because it is more than the interest, 450.000 950.587 Remainder, forming a new principal, 1017.128 Deduct the third payment, 650.000 Remainder, forming a new principal, 367.128 The interest from Sept. 1, 1828, to July 1, 1830, the time of settlement, 40.384 |