22. What is the interest of 910 dols. 50 cts. for 3 years, 9 months, and 26 days, at 7 per cent. per annum ? 23. How much will 185 dols. 26 cts. amount to, in 2 years, 3 months, and 11 days, at 7 per cent. per annum? Ans. 216 dols. 94 cts. 4 ms. 25. How much is the amount of 298 dols. 59 cts. from 19th May, 1797, to the 11th of August, 1798, at 8 per cent. per annum ? Ans. 327 dols. 98 cts. 4 ms. 26. How much is the amount of 196 dollars, from June 14, 1798, to April 29, 1799, at 5 per cent. per annum? Ans. 205 dols. 86 cts. 27. What is the interest of 658 dollars, from January 9 to October 9 following, at per cent. per month? Ans. 29 dols. 61 cts. In the calculation of interest in federal money, thus far, the year is suppos ed to be 12 months of 50 days each, making it only 360 days. Most persons use this method of computing the time, but as it is 5 days less in a year than the true number, some merchants calculate by days, without any regard te months, as being more accurate. EXAMPLES. 28. What is the interest of 7086 dollars, for 39 days, at 6 per cent. per annum ? By Compound Proportion. 7086 29. What is the interest of 87 dols. 56 cts. for 72 days, a 6 per cent. per annum ? The following method of calculating the interest upon accounts, when there are partial payments, is sometimes used. 1798. January 2, Lent15, Lent dols. days. Prod. princ.&-time. .1300 Then 6083)9608( 1,57 interest at 6 per cent. 35250 7,57 the amount duc March 20th. 48350 42581 5769 By this method interest may be calculated on accounts, multiplying each sum by the days it is at interest, and taking the quotient of 36500, divided by the rate per cent. as a fixed divisor to the sum of the products. Thus, the rate in the last example being 6 per cent, the divisor is 6083; for 5 per cent. it would be 7300; for 7 per cent. 5214, &c. If the time is months, multiply each sum by the months it is at interest, and take the quotient of 1200, divided by the rate as a divisor. Thus, for 6 per cent. the divisor is 200; for 5 per cent. 240; for 8 per cent. 150, &c.--(See Compound Proportion, page 73.) IN COMPUTING INTEREST ON NOTES, &c. It has generally been the custom to find the amount of the principal from the time the interest commenced to the time of settlement, and likewise the amount of each payment, and then deduct the amount of the several payments from the amount of the principal. EXAMPLE.. A, by his note dated April 25th, 1798, promises to pay to B 774 dols. 76 cts. on demand, with interest to commence 4 months after the date. On this note are the following endorsements: Received, Oct. 12th, 1798, 260 dols. 19 cts.-Oct. 13th, 1798, 60 dols.—Nov. 2, 1798, 200 dols. And the settlement is made Dec. 15th, 1798. CALCULATION. dols. cts. 774 76 (3 m. 20 days). dols. cts. 14 20 788 96. The principal carrying interest from 25th Aug. 1798. Amount of the principal. First payment, Oct. 12th, 1798.. 260 19 RULE established by the Courts of Law in Massachusetts for making up judgments on SECURITIES FOR MONEY, which are upon Interest, and on which partial payments have been endorsed. COMPUTE the interest on the principal sum, from the time when the interest commenced to the first time when a payment was made, which exceeds either alone or in conjunction with the preceding payments (if any) the interest at that time due: add that interest to the principal, and from the sum subtract the payment made at that time, together with the preceding payments (if any) and the remainder forms a new principal; on which compute and subtract the interest, as upon the first principal and proceed in this manner to the time of the judg ment. By this Rule, the payments are first applied to keep down the interest; and no part of the interest ever forms a part of a principal carrying interest. The following example will illustrate the rule, in which the interest is computed at the rate of 6 per cent. by the year, that being the legal rate of interest in Massachusetts. A, by his note dated January 1, 1780, promises to pay B 1000 dols. in six months from the date, with interest from the date. On this note are the following endorsements: Received, April 1, 1780, 24 dols.-August 1, 1780, 4 dols.— Dec. 1, 1780, 6 dols.—Feb. 1, 1781, 60 dols.—July 1, 1781, 40 dols.—June 1, 1784, 300 dols.-Sept. 1, 1784, 12 dols. Jan. 1, 1785, 15 dols. and Oct. 1, 1785, 50 dols.-and the judgment is to be entered Dec. 1, 1790. CALCULATION. The principal sum carrying interest from January 1, 1780 Paid April 1, 1780, a sum exceeding the interest Amount 1015 00 ...... 24 00 Remainder for a new principal 991 00 Interest on 991 dols. from April 1, 1780, to Feb. 1, 1781, (10 mo.) 49 55 Amount 1040 55 Paid August 1, 1780, a sum less than the interest then due Dis. 4 00 Paid Dec 1, 1780, do. .......... do.. 6 00 Paid Feb. 1, 1781, do. greater than the interest then due |