(59.)

$1675.

SAYBROOK, CONN., July 7, 1891.

On demand, I promise to pay George A. Howe, or order, sixteen hundred seventy-five dollars, with interest. Value received. JOSEPH A. DAVIS.

INDORSEMENTS: Dec. 8, 1891, $300; Oct. 19, 1892, $60; Aug. 15, 1893, $500. What was due Sept. 1, 1894 ?

ANNUAL INTEREST.

551. In some States when notes are written "with interest annually," the interest, if it is not paid at the end of the year, when it is due, draws simple interest until paid.

NOTE 1. In Massachusetts and Maine interest is not allowed on annual interest, unless after demand for its payment or by special agreement.

(60.)

$350.

MANCHESTER, N. H., May 17, 1890. On demand, I promise to pay John Cogswell, or order, three hundred fifty dollars, with interest annually. Value received. FRANCIS WHITNEY.

What is due on this note May 17, 1894?

Int. due on principal annually.......$350 x 0.06 = $21.00

Principal.......

Total annual interest...

Int. for 3 yr. on the $21 due May 17, 1891..........

350.00

1893.......

..$21 × 4 = 84.00 3.78 1892.......... 2.52 1.26 $441.56

NOTE 2. The simple interest on the several interests due annually can be computed at once by computing the interest on the interest due annually fɔr a number of years equal to the sum of the number of years the several annual

= the in

interests remain unpaid. Thus, in Ex. 60, the interest on the $21 for 3 yr. + the interest on the $21 for 2 yr. + the interest on the $21 for 1 yr. terest on $21 for 6 yr.

552. Hence, to find the amount due on a note " with interest annually," when the interest remains unpaid,

Rule.

Add to the principal the simple interest on the principal for the given time, and also the simple interest on one year's interest of the principal for a number of years equal to the sum of the number of years the several annual interests remain unpaid.

61. What would be due on a note of $ 642 "with interest annually" in 7 yr. from its date?

62. What is the excess of annual over simple interest of $520 for 4 yr. 6 m. ?

63. What is the amount of $465 at annual interest for 8 yr. 6 m. ?

64. What is the amount of $562 at annual interest for 3 yr. 3 m. 18 d.?

553. When partial payments are made on a note that is written "with interest annually" the following is the

common

Rule.

Find the amount of the principal by the annual interest method, to the end of the first year in which a payment, or payments, plus the interest on the payment, or payments, not less than the interest due at the end of the year has been made. From this amount subtract the payment, or payments, plus the simple interest on the payment, or payments, to the end of the year. The remainder will be a new principal, with which proceed as before,

(65.)

$875.

CONCORD, N. H., Feb. 7, 1893.

I promise to pay Charles Edwards, or order, eight hundred seventy-five dollars, with interest annually. Value received. PORTER W. FRENCH.

INDORSEMENTS: June 7, 1893, $20; Feb. 26, 1894, $ 300;

Jan. 20, 1896, $200. What was due April 7, 1896 ?

First payment June 7, 1893, is less than the interest due at the

(66.)

$274.

PORTSMOUTH, N. H., April 7, 1893.

I promise to pay Jacob Bowen, or order, two hundred seventyfour dollars, on demand, with interest annually. Value received. SAMUEL FRENCH.

INDORSEMENTS: March 31, 1894, $100. What is due on this note April 7, 1896 ?

554. Vermont Rule for notes "with interest annually."

If the payment, or sum of the payments, is not less than the interest due at the end of the year, the rule is the same as that already given in Art. 553.

If the payment, or sum of the payments, is less than the interest due at the end of the year, with these payments plus the interest on them, (1) cancel the simple interest due on the annual interests, and (2) take the remainder from the sum of the annual interests due. On the excess of interest then due cast simple interest to the end of a year when the payments, or sum of the payments, exceeds the interest due.

NOTE. If the payment is less than the simple interest due on the annual interest, no interest must be cast on the balance of simple interest still due after deducting the paymeut.

$356.

(67.)

MONTPELIER, VT., July 10, 1891.

I promise to pay Josiah F. Monroe, or order, three hundred fifty-six dollars, on demand, with interest annually. Value received. JABEZ WHITMAN.

INDORSEMENTS: Dec. 6, 1891, $20; March 6, 1893, $75; Oct. 11, 1894, $15. What was due Nov. 6, 1895?

First payment Dec. 6, 1891, is less than the interest due at the

end of the year.

Principal.........

$356.00

Annual interest due July 10, 1892......................

Amount of $20 Dec. 6, 1891, to July 10,

$21.36

1892............

20.71

Balance interest due July 10, 1892......................
Interest on $0.65 July 10, 1892 to July 10,

$0.65

Interest on $75 March 6, 1893, to July 10,

1893..

1.55

76.55

Amount due July 10, 1893.....

$301.50

Annual interest on $301.50 due July 10, 1894 $18.09

Interest on $18.09 July 10, 1894, to July

10, 1895....

1.085

Annual interest on $301.50 due July 10, 1895
Interest due July 10, 1895.......

18.09

$37.265

Amount $15, Oct. 11, 1894, to July 10, 1895
Balance interest due July 10, 1895........
Interest on $21.59 July 10, 1895, to Nov. 6,

15.672

$21.59

1895......

0.42

Interest on $301.50 July 10, 1895, to Nov. 6,

1895.

5.88

27.89

Ans. $329.39

Amount due Nov. 6, 1895.......

555. New Hampshire Rule for notes "with interest annually," is the same as the Vermont Rule, except

When no interest is due except what is accruing during the year, and the payment, or sum of the payments, is less than the interest due at the end of the year, these payments are applied at the end of the year without interest added.