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2. What must be given for 75 shares in the Lowell Railroad, at 25 per cent. advance, the original shares being $100 each? Ans. $9375. 3. What is the purchase of $8979 Bank stock, at 12 per cent. advance ? Ans. $10056.48. 4. What is the purchase of $1789 Bank stock at 9 per cent. below par ? Ans. $1627.99.

Section 38.

BANKING.
KIN

When a note is discounted at a bank, the interest is taken at the time the note is given, and the interest is computed for 3 days more than the time specified in the note; that is, if the note is given for 60 days, the interest is taken for 63 days; for the law allows 3 days to the debtor, after the time has expired for payment, which are called days of grace. If, therefore, a note is given to the President and Directors of the Merrimack Bank for $100, to be paid in 60 days, the interest on the $ 100 is computed for 63, and taken from the sum of the note. So that the borrower receives only $98.95 for the note discounted.

1. What is the bank discount on $478, for 60 days? Ans. $5.01+. 2. What is the bank discount on $ 780, for 30 days? Ans. $4.29. 3. What is the bank discount on $1728, for 90 days? Ans. $26.78+. 4. How much money should be received on a note of $1000, payable in 4 months, discounted at a bank, where the interest is 6 per cent. ? Ans. $979.50.

Section 39.

DISCOUNT.

The object of discount is, to show what allowance should be made, when any sum of money is paid before it becomes due.

The present worth of any sum is the principal, that must be put at interest, to amount to that sum in the given time. That is, $100 is the present worth of $106, due one year hence; because $100 at 6 per cent. will amount to $106, and $ 6 is the discount.

1. What is the present worth of $25.44, due one year hence? Ans. $24.00.

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Divide the given sum by the amount of $1 for the given rate and time, and the quotient will be the present worth. Or, multiply the given sum by 100, and divide the product by the amount of $100 for the given rate and time, and the quotient is the present worth.

2. What is the present worth of $152.64, due one year hence? Ans. $144.00. 3. What is the present worth of $477.71, due four years hence ? Ans. $385.25.

Ans. $144.05.

4. What is the present worth of $172.86, due 3 years 4 months hence? 5. What is the present worth of $ 800, due 3 years 7 months and 18 days hence? Ans. $656.81+.

6. Samuel Heath has given his note for $375.75, dated Oct. 4, 1842, payable to John Smith, or order, Jan. 1, 1844; what is the real value of the note at the time given? Ans. $215.32+. 7. Bought a chaise and harness, of Isaac Morse, for $125.75, for which I gave him my note, dated Oct. 5, 1842, to be paid in six months; what is present value of the note Jan. 1, 1843 ? Ans. $123.76+. 8. My tailor informs me, it will take 10 square yards of cloth to make me a full suit of clothes. The cloth I am about to purchase is 12 yards wide, and on spunging it will shrink 5 per cent. in width and length. How many yards of the above cloth must I purchase for my new suit"? Ans. 5yd. Oqr. Una.

Section 40.

COMPOUND INTEREST.

The law specifies, that the borrower of money shall pay a certain number of dollars, called per cent., for the use of $100 for a year. Now, if this borrower does not pay to the lender this per cent. at the end of the year, it is no more than just, that he should pay interest for the use of it, so long, as he shall keep it in his possession; this is called Compound Interest.

1. What is the compound interest of $500 for 3 years? Ans. $95.50.

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From the above process, we see the propriety of the following

RULE.

Find the interest of the given sum for one year, and add it to the principal; then find the interest of this amount for the next year; and so continue, until the time of settlement. Subtract the principal from the last amount, and the remainder is the compound interest.

2. What is the compound interest of $761.75 for 4 years? Ans. $199.94. 3. What is the amount of $67.25 for 3 years, at compound interest? Ans. $80.09+. 4. What is the amount of $78.69 for 5 years at 7 per cent. ? Ans. $110.33.

5. What is the amount of $128 for 3 years 5 months and 18 days, at compound interest ? Ans. $156.70. 6. What is the compound interest of $76.18 for 2 years 8 months 9 days? Ans. $89.14.

II. To find the amount of a note at compound interest, when there have been partial payments.

RULE.

Find the amount of the principal, and from it subtract the amount of the indorsements.

7. $144.

Haverhill, Sept. 25, 1839. For value received, I promise to pay Charles Northend, or order, on demand, one hundred forty-four dollars, with interest. John Small, Jr.

Attest, Q. Jones.

On this note are the following indorsements. Jan. 1, 1840. Received thirty dollars.

June 30, 1841.

Feb. 7, 1842.

Received eighty dollars.
Received ten dollars.

What is due on the above note at compound interest,

Oct. 4, 1842 ?

Ans.

OPERATION BY COMPOUND INTEREST.

Principal

$144.00

Interest from Sept. 25, 1839, to Oct. 4, 1842,

27.76

171.76

First Payment

$30.00

Interest from Jan. 1, 1840, to Oct. 4, 1842 5.23

Second payment

80.00

Interest from June 30, 1841, to Oct. 4, 1842 6.12

Third payment

10.00

Interest from Feb. 7, 1842, to Oct. 4, 1842 39

$131.74

Remains due, Oct. 4, 1842

$40.02

Section 41.

EQUATION OF PAYMENTS.

When several sums of money, to be paid at different times, are reduced to a mean time for the payment of the whole, without gain or loss to the debtor or creditor, it is called Equation of Payments.

1. John Jones owes Samuel Gray $ 100 ; $ 20 of which is to be paid in 2 months; $40 in 6 months; $30 in 8 months; and $10 in 12 months; what is the equated time for the payment of whole sum? Ans. 6mo. 12da.

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