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5. $1250.

CLEVELAND, OHIO, April 9, 1911.

Three months after date, I promise to pay Samuel B. Copson, or order, Twelve Hundred Fifty Dollars,

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d AFTER DATE. e PROMISE TO PAY TO THE

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Blank forms like the above are generally used in making out notes.

Tell what is to be written in each of the spaces indicated by the letters a to i.

Study the form until you can write a note.

PROBLEMS

1. On Jan. 27, 1911, John Y. Peterson of New York bought goods to the value of $840 from King and Cross, giving in payment therefor his note due in three months, with interest at 6%.

Write the note.

What amount must Mr. Peterson pay when the note becomes due?

On what date must it be settled?

2. On Dec. 13, 1910, William K. Pond of Cleveland bought lumber worth $486 of the Northern Lumber Co. Mr. Pond gave a written promise to pay in 4 months, with interest at 5%.

Write the promise.

When ought Mr. Pond to pay the note?
How much must Mr. Pond pay?

3. On Aug. 27, 1911, Arthur S. Walton of Trenton, N.J., bought $1750 worth of coal from the Western Coal Co. Four hundred dollars was paid in cash, and a 10-days' note given for the balance, with interest at 7%.

Write the note.

Who is the payee in the note?
When should the note be paid?

How much was required to settle the note?

Make out notes from the following conditions, using the names of some friend as payee, and your own name as maker. Find the date of maturity, and compute the amount due on that date.

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14. $350.

Louisville, Ky., July 24, 1912.

On demand after date, I promise to pay to the order of George R. Whiting, Three Hundred Fifty Dollars.

Value received, with interest at 7%.

JACKSON S. PARKER.

This is a demand note and is due whenever payment is demanded.

Compute the amount due if payment was demanded on Sept. 30, 1912.

15. $600.

MONTGOMERY, ALA., Jan. 16, 1912. Three months after date, we jointly and severally promise to pay to the order of Henry V. Berry, Six Hundred Dollars.

Value received, with interest at 8 per cent.

JOHN M. HARKINS.

CHARLES S. BAKER.

This is a joint-and-several note, and each signer is responsible for the whole amount due at settlement. Compute the amount due "three months after date."

16. $1200.

KANSAS CITY, Mo., Aug. 19, 1905.

Three months after date, we jointly promise to pay to the order of Lawrence S. Barker, Twelve Hundred Dollars.

Value received, with interest at 7%.

ARTHUR B. SMITHSON.

GEORGE R. CARTER.

This is a joint note, and each signer is responsible for

the payment of one half the amount due at settlement.

Compute the amount each must pay at the end of the time named.

Write notes complying with the following conditions and compute the amount due at settlement :

17. On Sept. 15, 1911, Mr. James O. Master of Fairfield, Ky., bought 6 cows at $90 each from his neighbor, Mr. Henry R. Duncan. He paid down $250, and gave a note due in 4 months with interest at 5% for the balance.

18. Mr. Henry Q. Summers gave a demand note for $6000 to Smith and Jackson on June 17, 1911, agreeing to pay interest at the rate of 8%.

Payment was demanded Sept. 29, 1912.

19. Mr. Arthur B. Cady, who owns a fishing vessel worth $4200, sells a three-sevenths interest to Horace C. Ridlon, accepting in payment a note due in 6 months with interest at 5%.

20. Imagine that you and one of your playmates own a tract of land containing 15 acres. Buy his share at $120 per acre; pay of the price down; and give a note for 60 days with interest at 6 % for the balance.

21. Mr. Burns buys at auction 6 lots of land, averaging 8000 sq. ft. each, at 71 per square foot, paying down $25 on each lot and giving a note for the balance, due in 6 months at 5%.

22. You sell a wood lot for $800 to two parties, A. B. and C. D., who give a note due in 8 months with interest at 5%. Write a note in which each is responsible for payment. A note in which each is responsible for payment of one half of the note.

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On April 13, 1911, Mr. Clark G. Runnals buys goods of Mr. Baker F. Grant to the amount of $300, giving the above note in payment. Mr. Grant, wishing to use at once the money represented by this note, asks a bank to buy it. The bank, being satisfied that both the maker and the holder are reliable persons, agrees to purchase it. After Mr. Grant indorses the note, the bank accepts it, and pays to Mr. Grant the sum named in the note less the interest for sixty days. $300-$3-$297. This is discounting the note. The bank is now the owner of the note. When the note becomes due (60 days after April 13, or on June 12), Mr. Runnals must pay to the bank, instead of to Mr. Grant, the sum named in the note.

The sum deducted from the face of the note by the bank for its services is the bank discount.

Thus, $3 is the bank discount on the above note.

Bank discount is simple interest on the value of a note when it becomes due, or matures.

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