The foregoing is the correct method of reckoning discount yet the usual method in practice is to compute the interest for the time, and deduct it from the given sum. The interest thus found is called the discount. The difference between interest and discount, on a small sum, for a short time, is inconsiderable; but the difference becomes very considerable when the sum is large and the time long for which the discount is to be made. 12. What is the difference between the interest and discount of $100 for 1 month, at 6 per cent. ? Ans. 21 mills, nearly. 13. What is the difference between the interest and discount of $649, for 3 years, at 6 per cent. ? Ans. $17.82. Art. 214.-Bank discount is the same as simple interest When a note is discounted at a bank, the interest is computed on the sum from the date of the note to the time when it becomes due, including three days of grace, and deducted as discount. Thus, if a note of $100 be discounted for 30 days, the interest is computed for 33 days. Custom has allowed to the borrower 3 days after the day on which the note becomes due, called days of grace; and as payment is generally withheld until the third day, it is justice that interest should be paid for these days. If the payment of a note cannot conveniently be made at the proper time, the note may be taken up, if the bank allow the indulgence, by a new note, which must be presented on the day of discount immediately preceding the day on which the note would have become due, paying at the same time the discount, or interest, as before stated. Thus the borrower loses the discount on his note from the day on which he replaces it by another to the day on which it would have been to be paid. The discount of any sum discounted for 30, 60, or 90 days, is found by multiplying by of the days. (See Art. 202.) EXAMPLES. 14. What is the bank discount ɔn a note of $714, for 30 days, at 6 per cent.? 15. What is the bank discount on a note of $1692, for 60 days, at 6 per cent. ? QUESTION.-5. What is the usual method in practice? 16. What is the bank discount on a note of $784, for 90 days, at 6 per cent. ? Operation. 2)784 0.015/ 3920 784 392 $12.152 Ans. 17. What is the bank discount on a note of $53, for 30 days? Ans. $.291+. 18. What is the bank discount on a note of $1092, for 30 Ans. $6.006. days? 19. What is the bank discount on a note of $2049, for 30 days? Ans. $11.269. 20. A.'s note of $561, for 60 days, is discounted at the bank, at 6 per cent. What ready money does he receive? Ans. $555.109. 21. B.'s draft for $150, drawn at 15 days' sight, is cashed at the bank, at 3 per cent. discount. How much money does he receive? Ans. $149.812+. 22. What is the bank discount on a note of $340, for 90 days, at 6 per cent. ? Ans. $5.27. 23. What is the bank discount on a note of $632.75, for 90 days, at 6 per cent. ? Ans. $9.807. When a note is offered at the bank for discount, one or two endorsers are generally required; and the note is presented in one of the following forms: QUESTIONS.-6. What is bank discount? 7. What is meant by days of grace? 8. !low is discount found for 30, 60, and 90 days? 9. When a note is offered at a bank for discount, what is required? $500. CONCORD, July 4th, 1849. For value received, we, the subscribers, jointly and severally promise to pay the President, Directors, and Company of the New England Bank, or order, five hundred dollars, at said bank, on demand, with interest after sixty days. When a note, called business paper, is offered for discount, it is generally made in the following form: $350. BOSTON, August 6th, 1849. Three months after date, I promise to pay to the order of Mr. JOHN SAVAGE, at the Commonwealth Bank, three hundred and fifty dollars, value received. A. B. In order to negotiate this note to an individual, or to procure a discount of it at a bank, the said Savage should endorse his name upon the back of the note, and such other names of endorsers should be procured as may be required; in which case, the promiser, or payer, A. B., is first liable for the note, and the note should be demanded of him, when it becomes due. If not paid, immediate notice should be given to the endorsers of the note; and on such demand and notice, the endorsers become liable for payment of the note; otherwise they are not holden. The promiser, or payer of a note, is the individual who signs it. The promisee, or payce, is the person to whom the note is payable. When a note is endorsed, the promisee, or payee, is always an endorser. LOSS AND GAIN. Art. 215.-LosS AND GAIN teach to find what is gained or lost in the purchase and sale of goods; and also to regulate the price, so as to gain or lose, at a certain rate per cent. 1. If I purchase goods to the amount of $50, and sell the same for $60, what do I gain per cent. ? QUESTIONS.-10. What is the form of a note payable to the president, directors, &c., of a bank? 11. What is the form of a note called business paper? 12. Who is the promiser of a note? 13. Who the promisee? 50 It is evident that the gain on $1 would be as much as on $50. Since, then, the gain on $50 is $10, or the gain is 10 of the cost, then $10-50-20 cts. on a dollar, or 20 per cent., the Answer. Hence the 50 RULE. When the prices at which goods are bought and sold are given, to find the gain or loss per cent.: Divide the gain or loss, found by subtraction, by the cost of the article. EXAMPLES. 2. A merchant bought goods to the amount of $500, and sold the same for $700. What did he gain per cent.? The question may be thus expressed, as in the Rule of Three : What is the gain on $100, if on $500 the gain be $200 ? Operation. What gain ?|XØØ $ If $ 500 200 40 40 per cent. Ans. 3. A merchant purchased goods to the amount of $342.25, gains on the sale $41.07. What is the gain per cent.? Ans. 12 per cent. 4. Bought flour to the amount of $840. Sold the same for $907.20. What do I gain per cent? Ans. 8 per cent. 5. Suppose a merchant purchase goods to the amount of $1000, and sell them for $910, what is the loss per cent. ? Ans. 9 per cent. 6. Bought für caps for $7 apiece; sold them for $7.25. What was the whole gain in laying out $630, and what was Whole gain, $22.50. Gain per cent., 3.57+. the gain per cent. ? Ans. { 7. What is the whole loss, and what is the loss per cent., in laying out $70 for hats, at $1.75 25 cents apiece less than cost? each, and selling them for Ans. (Whole loss, $10. Loss per cent., 142. QUESTIONS.-1. What is Loss and Gain? 2. How is the gain or loss per cent. found? 3. Having the gain or loss per cent, how is the price found at which an article is bought or sold? 8. Bought 100 yards of cloth, at $6.72 per yd., and sold the same for $8.40. What did I gain per cent? Ans. 25 per cent. Art. 216.—When the gain or loss per cent. is given, to find the price at which the goods are bought and sold. RULE. If the per cent. be gain, add it to 100; if the per cent. be loss, subtract it from 100, and proceed as in the Rule of Three. EXAMPLES. 9. A merchant sold cloth, which cost $6.72 per yard, at 25 per cent. profit. For how much did he sell the cloth per yard? (See Interest, Obs. 3, Art. 204.) Operation. How many $6.72 $ 168 4 $ 100 125 $ 5 $8.40 Ans. 10. A merchant sold cloth at $8.40 per yard, and gained 25 per cent. What was the first cost? cent. Operation. How many $8.40 $ $6.72 Ans. 11. If 1 tun of wine cost £40, for how much must it be sold to gain 64 per cent.? Ans. £42 10s. 12. Sold 10 yards of cloth for £4 16s., and gained 10 per What was the prime cost per yard? Ans. 8s. 8d. 13. Bought 7 tuns of wine, at $61.20 per hhd.; sold at 18 cents a pint. What was the whole gain, and how much per cent. ? Whole gain, $826.56. Gain per cent., $48.235. 14. Purchased 40 gallons of molasses, at 3s. per gallon. By accident, 6 gallons leaked out. At what rate must I sell the remainder per gallon to gain 10 per cent. upon the first cost, and give 8 months' credit? Ans. 4s. Od. 1gr.+ Ans. 15. If I sell a pound of silk for $12.72, and gain $1.20, how much should I gain in selling a bale which cost $1152 ? Ans. $120. 16. Bought 300 lbs. of coffee, at 4s. 2d. per lb., ready money. |