EXAMPLES. Required the interest of 316 dollars for 1 year and 10 months. 11=half the number of ino. Ans. 5476cts.=834, 76cts. ... What is the interest of 564 dols. 25cts. for 4 months : $ cts. 364, 25 2 half the months. 28, 50cts. A125.=87, 28cis. 511, Ill. When the principai is given in federal money, at per cent. to find how much the monthiy interest will be in New-England, &c. currency. RULE. Multiply the given principal by ,03 and the product will be the interest for one monti, in shillings and decimal parts of a shilling. EXAMPLES, 1. What is the interest of 325 dols. for 11 months ? ,03 9,75 shil. int. for 1 month. X11 months. stus. 107,258.=55 ms. 5d. 2. What is the interest in New England currency, of 31 cols. 68 cts. for 5 months? Principal 31,69 dols. ,03 29504 Interest for one month. 5 ins. 4,75205.4s. 9d. 12 90940 IV. When the principal is given in pounds, shillings, &c. New-England currency, at 6 per cent to find how much the monthly interest will be in federal money. RULE. Multiply the pounds, &c. by 5, and divide that product by 3, the quotient will be the interest for one monthe in cents, and decimals of a cent, &c. EXAMPLES. 1. A note for £411 New England currency has been on interest one month ; how much is the interest thereof in federal money? ? $)9055 Sns. 685cts.=86, 85cts. 2. Required the interest of 391. 185. N. E currency for the months ? 39,9 decimal value 5 Pitto for months, 465,5cts.=54, 65cts. 511. Anse V. When the principal is given in New England and Virginia currency, at 6 per cent, to find the interest for a year, in dollars, cents and mills, by inspection. Since the interest of a year will be just so many cents as the given principal contains shillines, therefore, write down the shillings and call them cents, and the pence in the principal made less by 1 if they exceed 3, or by when they exceed 9, will be the mills, very nearly., EXAMPLES. 1. What is the interest of 21. 5s. for a year at 6 per ct.? £2 55.=45s. Interest 45cts. the Answer. 2. Required the interest of 100!. for a year at 6 per ct.? £1002000s. Interest 2000cts.=820 Ars. 3. Of 275. 6d. for a year? Ans. 27s. is 27 cts. and 6d. is 5 mills. 4. Requirc:the interest of 5l. 10s. 11d. for a year ? £5 10s.=110s. Interest 110cts.=$1, 10cts. One 11 pence-- per rule leaves 9= 9 EXAMPLES. VI. To compute te interest on any note or obligatio , when there are payments in part, or indorsements. RULE. 1. Find the annount of the whole principal for the whole time. 2. Cast the interest on the several payinents, from the time they were paid, to the time of settlement, and find their amount; and lastly deduct the amount of the several payments, from the amount of the principal. Suppose a bond or note dated April 17, 1793, was given for 675 dollars, interest at 6 per cent. and there were payments indorsed upon it as follows, viz. First payment, 148 dollars, May 7, 1794. Third payment, 99 dols. Jan. 9, 1798. I demand how much remains due on said note, the 17th of June, 1798 ? S cis. Yr. mo. 36, 50 interest up to- June 17, 1798.=4 13 184, 50 amount. 541, co second payment, Aug. 17, 1796. Ir. mo. 57, 51 Interest to June 17, 1798. = 10 578, 51 aplount. Carried over $ cts. 675, 00 note, dated April 17, 1793. 884, 25 amount of the note. $ 50 $219, 52 remains due on the note, June 17, 8798. 2. On the 16th of January, 1795, I lent James Paywell 500 dollars, on interest at 6 per cent, which I received back in the following partial payments, as under, riz. 1st of April, 1790 400 1st of Sept. 1798 How stands the balance between lis, all the 16th Nye yember, 1800 ? Aus, due to me $6S, iscis. S. A IROMISSORY VOTE, VTZ. £69 10s. Nou-Londui, mil 4, 1797. On demand I promise to pay 'n'imothy Coletul, sixtytwo pounds, ten shillings, and interest at 6 per cent. Per annum, till paid; value receitc:i. JOHN STAXBY, PETER PAYIVELL. RICHARD TESTIS. Indorsements. #s, 1st. Received in part of the above nate, Sep. tember 4, 1799. 50 0 And payment June 4, 1800, 19 10 flow much remains due on said note, the litevdi dayis December, 1800 sich NOTE. The preceding Rule, by custom is rendered so popular, and so much practised and esteemed by many on account of its being simple and concise, that I have given it a place: it may answer for short periods of time, but in as long course of years it will be found to be very erroneous. Although this method seems at first view to be upon the ground of simple interest, yet upon a little attention the following objection will be found inost clearly to lie against it, viz. that the interest will, in a course of years, conpletely expınge, or as it inay be said eat up the debt. For an explanation of this, tukce the following EXAMPLE, A lenus B 100 dollars, at 6 per cert. interest, and takes lis note of hand; B does no more than pay A at every year's end 6 dollars, (which is then justly due to B for the use of his money) and bas it endorsed on his pole. At the end of 10 years B takes up his note, ani the sum he has to pay is reckoned thus : The principal 100 dollars, on interest 10 years amounts to 160 dollais; there are nine endorsements of 6 dollars cach, upon which the debtor claims interest; one for years, the second for 8 years, the third for 7 years, and so down to the time of settleinent; the whole amount of the several endorsements and their interest, (as any one can see by casting it) is $70, 20 cts. this subtracted froin 100 dols. the amount of the debt leaves in favour of the creditor', 889, 40 cts. or $10, 20 cts. less than the original principal, of which he has not received a cent, but only its annual interest. If the same note should lic 20 years in the same way, B would owe but 57 dols. 60 cis. without paying the Icast fraction of the 100 dollars borrowed. Extend it to 28 years, and A. the creditor cult all ja debt to B without receiving a cent of the 100 dollars which he lent him. Sco a better Rule in Simple Intereat by Decimals, page 175. |