37. Payments were made on a note of $1800 dated Jan. 12, 1891, as follows: March 6, 1891, $ 300; April 15, 1891, $190; July 3, 1891, $565; Oct. 15, 1891, $700. What was due Dec. 21, 1891, interest at 6% ?

38. When must $1600 be put at interest at 6%, so that it will amount to $1800 on Jan. 1, 1910?

39. Find the amount of $375 for 2 yr. 8 mo. 16 da. at 6%.

40. Find the amount at simple interest of $1200 from April 4, 1895, to the present time.

41. A note for $728 is dated Nov. 16, 1894. March 8, 1895, there was paid on it $25. Find the amount due on Jan. 4, 1896, interest at 6%.

42. Find the amount at simple interest of $1184.63 for 1 yr. 4 mo. 17 da. at 41% ?

43. Write your own promissory note for $200, with interest, payable in 60 days from to-day. When does it become due? Find the amount due at maturity.

44. Find the exact interest on $843.20 from April 10, 1895, to March 15, 1896, at 41%.

45. Upon a note for $950, dated Syracuse, N.Y., Jan. 1, 1894, $150 was paid Aug. 16, 1894; $ 25 March 1, 1896; and $ 200 April 16, 1896. How much is due to-day?

46. $645 was paid as interest on $2000 for 3 yr. 7 mo. What was the rate?

47. $30 was paid as interest on $600 at 6%. What was the time?

48. A house that cost $5000 was rented for $500, and 100 was paid for annual taxes and repairs. What rate of interest did the investment yield?

49. A person investing a certain sum of money at 6% for 1 yr. 6 mo. found at the end of that time the investment amounted to $545. Find the sum invested.

50. A man bought a horse for $150, paying $ 70 in cash, and the balance on time at 6%. He paid at the time of settlement $83.60. How much time elapsed before that date?

51. H. C. Harmon loaned $250 for 1 yr. 3 mo. 27 da., which amounted to $269.875 at the time of payment. Find the rate of interest.

52. A person having a certain sum of money invested, and drawing compound interest at 6%, found at the end of 2 yr. 2 mo. that it amounted to $ 567.418. What was the sum invested?

53. A sum of money was borrowed Jan. 30, 1895, and $419.60 paid in full Nov. 24, 1895. The rate of interest being 6%, how much of this was interest?

54. A man owes $4600 at 7%, and each payment of interest amounts to $161. How often does he pay interest?

365. Oral.

TRUE DISCOUNT.

1. What will be the amount of $100 at 6% one year from to-day?

2. What is the value to-day of a debt of $106, due in one year, when money is worth 6% interest?

3. How much money paid to-day will cancel a debt of $112, due two years hence, money being worth 6%?

4. What is the present worth of $105, due in one year without interest, when money is worth 5% interest?

5. When money can be loaned at 7%, which is worth the more, $100 at the present time, or a note of $107 without interest, due in one year?

6. What sum should be deducted from a debt of $108, due without interest in one year, in consideration of its being paid now, when money can be loaned at 8%?

366. True Discount is a deduction of interest for the payment of a debt before due.

367. The Present Worth of a debt due at a future time is a sum which will amount to the debt if put at interest till that time.

The debt is therefore the amount of the present worth for the given time.

368. The true discount is the difference between the debt and its present worth. It is the interest of the present worth for the given time.

7. What is the present worth and the true discount of a debt of $582.40, due in 8 months without interest, when money is worth 6% ?

Since $1.04 is the amount of $1 for 8 mo., $582.40 is the amount of as many dollars as $1.04 is contained times in $ 582.40 = $560.

Rule.

To find the present worth, divide the debt by the amount of $1 for the given time.

To find the true discount, subtract the present worth from the debt.

8. What is the present worth and true discount of $400, due in one year, when money is worth 5% ?

9. A father wills his two sons $3000 each, to be paid in three years from the time of his death. What is the value of the legacies at the probate of the will, if money is worth 6%?

10. What is the present worth of $450, due in two years at 5% ?

11. What is the present worth of $250.51, payable in 8 months, money being worth 6%?

12. Which is better, to buy flour for $5 cash, or for $5.25 on 6 months' time, when money can be borrowed at 5%?

13. Find the present worth of $750 for 6 months, money being worth 6%.

14. What is the present worth of $600, due in 1 year without interest, money being worth 6% ?

15. Write the note which would be given for the above debt.

16. A man wishing to buy a house and lot has his choice between paying $5400 in cash, or $4000 in cash and $1700 in two years. With money at 6%, which is the most advantageous for him?

17. Which would be more profitable, and how much, to pay $4000 cash for a house, or $4374.93 in 3 yr. 6 mo., money being worth 7%?

Do I

18. I can sell my house for $2800 cash, or $3000 and wait 6 months without interest. I choose the latter. gain or lose, and how much, money being worth 6% ?

19. What is the present worth of a debt of $385.31, due in 5 months 15 days, at 6% ?

BANK DISCOUNT.

369. When the holder of a negotiable note wishes the money before it becomes due, he may take it to a commercial bank; and if the banker is satisfied that the parties to the note are responsible, he will pay the holder the amount due after deducting the discount. By this act the bank becomes the holder of the note, and at its maturity the maker must pay to the bank instead of to the payee.

370. The Maturity Value of a note is the amount due at maturity.

The Bank Discount is the simple interest on the maturity value, reckoned from the day of discount to the day of maturity.

371. The maturity value less the bank discount is called Proceeds, or Avails. The time from the day of discount to

the day of maturity is called the Term of Discount.

372. The maturity value of a note not bearing interest is the face, and the maturity value of an interest-bearing note is the face plus the interest.

NOTE 1. Only short-time notes are discounted at banks, usually not exceeding 4 months.

NOTE 2.

- Banks generally require that the paper which they discount be made payable at some bank.

NOTE 3.- Banks usually reckon discount for the exact number of days in the term of discount, although the time in a note may be expressed in months. Banks usually regard the year as 360 days.

NOTE 4. In States having days of grace, the day of maturity is

the last day of grace.

NOTE 5. If the day of maturity falls on Sunday or a legal holiday, the preceding day is the day of maturity in most States. In some States, however, the note does not fall due until the day following. - When a note is discounted at date, the term of discount is the time of the note (+ 3 days of grace in States having days of grace).

NOTE 6.

Unless otherwise stated, a note is to be discounted at date.

$325

24

100

1.

Buffalo, N. Y., Jan. 15, 1896

Two months after date, for value received, I promise