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22. $ 960.

Boston, Oct. 19, 1881. Four months after date, I promise to pay to the order of George Horton nine hundred sixty dollars at the People's National Bank. Value received. JOSEPH E. LIBBEY.

The above note was discounted Nov. 12, 1881, at 9%. Required the proceeds.

Solution. 4 mo. 3 d. after Oct. 19, 1881 = Feb. 22, 1882, day of maturity.

From Nov. 12, 1881, to Feb. 22, 1882 = 102 d., term of discount.

Interest of $ 960 for 102 d. at 9% = $ 24.48, bank discount. $ 960 – $ 24.48 = $ 935.52, proceeds required. Find the bank discount and proceeds 23. Of a 4-month note for $875 at 6 %. 24. Of a 6-month note for $ 85.60 at 7 %.

25. Of a 90-day note for $ 600 dated Jan. 4, 1881, and discounted Feb. 3, 1881, at 6%.

26. Required the proceeds of a 4-month note for $ 5000 discounted 15 days after date at 8%.

27. What are the proceeds of a 6-month note for $ 10500, bearing interest at 6%, if discounted 60 days after date at

Rate.

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Find the proceeds of notes, using the following conditions : : Face.

Date Time to run. Day of Discount. 28. $ 485.96 Jan. 14 4 mo. Feb. 27 6 % 29. $ 966 Feb. 12 3 mo. Mar. 8 30. $ 1024 Apr. 1 2 mo. Apr. 15 31. $ 287 May 5 60 d. May 27 32. $ 648.50 July 10 90 d. Date 33. $ 984 June 15

5 mo.

Aug. 4 9% 34. $ 328 Sept. 20 6 mo. Nov. 27 4 % 35. $ 696 Aug. 25 30 d. Sept. 1

4} % 36. $ 842.50 Oct. 31 1 mo. Nov. 1 31 % 37. $ 500 Sept. 7 3 mo. Oct. 10 6% 38. $ 8643 Nov. 12 75 d. Dec. 15 7% 39. $ 242.16 Jan. 17

4 mo.

Feb. 10 10% 40. $ 800

Dec. 27 90 d. Jan. 15 3% 41. $ 560 Mar. 5 3 mo. May 1 42. $ 576

Dec. 11
6 mo.

Mar. 18 43. $ 898.96 Aug. 8 4 mo. Oct. 27

To find the Face of a Note to yield given Proceeds.

44. For what sum must a 90-day note be written that the proceeds may be $ 500, discounted at 6 % ?

Bank discount of a $1 note for 93 days = $ 0.0155
Proceeds of a $ 1 note = $1 – $0.0155, or $0.9845
Face of note required = $500 - $0.9845, or $ 507.87+

Solution. — As the proceeds of a $1 note for 93 days are $0.9845, to give $ 500 proceeds the face of the note must be as many dollars as $500 is times $0.9815, or $507.87+.

45. What must be the face of a 60-day note which, discounted at 7 %, will give as proceeds $ 1500 ?

46. The proceeds of a 4-month note, discounted at 6 %, are $ 293.85. What was its face?

301. Rule for finding the Face of a Note. Divide the given proceeds by the proceeds of $1 for the given rate and term of discount.

47. The proceeds of a 60-day note, discounted at 7%, are $ 444.481. What was its face ?

48. A merchant discounted a bill payable in 6 months, by deducting the interest for the time without grace at 10 %, and received as the cash proceeds $ 1520. What was the face of the bill ?

49. Receiving a 90-day note, I had it discounted at once at 6%, and received as proceeds $ 828.95. What was the face of the note ?

50. For what amount must a note be payable in 8 months, so that when discounted at 71% the proceeds may be $ 483.56 ?

MISCELLANEOUS EXERCISES. 51. I owe a debt of $ 924, payable without interest April 18, 1882. What shall be discounted for payment to-day, Oct. 6, 1881, money being worth 5% ?

52. Find a year's interest of the present worth of $540, due 12 months hence without interest, money being worth 8%?

53. At what date must a $ 1200 note have begun to draw interest which at 6% amounted to $ 1380, Oct. 15, 1880 ?

54. Wood owes Davis $ 5811. He pays him with a 60-day note. For what sum should the note be written to pay the exact debt if discounted at 11% a month ?

55. A 4-month note is dated August 22. On exactly what day must it be paid to save a protest? Why?

56. What is the present worth of $ 477.71, due 4 years hence, without interest, money being worth 6 % ?

57. What is the true discount on $ 900, due in 72 days, the current rate being 7%?

58. What is the difference between the interest and the true discount of $ 576, due 16 months hence, at 6% ?

59. What are the proceeds of a note for $ 368 payable in 90 days, discounted at bänk at 6 %?

60. On what month and day will a note for 60 days, dated Jan. 31, 1882, become legally due ?

61. A man was offered $ 3675 in cash for his house, or $ 4235 in 3 years without interest. He accepted the latter offer. Did he gain or lose, and how much, money being worth 7 %?

62. Wishing to borrow $ 500 at a bank, for what sum must my note be drawn at 30 days to obtain that amount, discount being 6% ?

63. What must be the face of a note, due in 45 days, that, when discounted at a bank charging 7% interest, will enable me to take up my note for $750, that has been on interest at 71% for 3 months and 15 days?

64. Pratt, Davis, & Co. sold an acre of land, which cost them $ 400, at 5 cents per square foot, taking in payment a 6 mo.note which they immediately get discounted at the Maverick Bank, at 5%. What were their profits ?

QUESTIONS. 289. What is discount? 290. What is the present worth of a debt? 291. What is true discount ? 292. How is the present worth found ? The true discount ?

293. What is commercial discount ? 294. What is the net price of an article ?

296. What is bank discount ? 297. What are the proceeds of a note ?

298. When is a note said to mature ? 299. What is the term of discount? 300. How are the proceeds of a note found ? 301. How do you find the face of a note to yield given proceeds ?

274. What is a negotiable note ? 275. What responsibility does a person incur by indorsing a note ?

STOCK INVESTMENTS.

302. 1. A company start business with $ 10000. Into how many shares of $ 100 each can this be divided ?

2. How much do 10 shares of $ 100 each represent ?

3. What is the value of five shares of $ 100 each at a discount of 20%?

4. When $100 shares sell at $ 120 each, how much is the advance on the original value ?

5. When a $ 100 share sells at $ 125, what per cent is the selling price above the original value ?

6. If you own 10 shares of $ 100 each, and receive as the profits $ 60, what per cent are the profits ?

303. A Share is one of the equal parts into which the capital of a corporation is divided.

The share is usually of the original value of $ 100, and may be so considered unless otherwise denoted.

304. Bonds are the interest-bearing notes of governments or corporations.

The interest on bonds is usually paid quarterly or semiannually.

A Coupon is the interest certificate attached to a bond. * 305. Bonds are commonly named according to their rate of interest and date of maturity. Thus,

U. S. 41's '91, means United States Bonds bearing 41 per cent interest and payable in 1891.

306. Stocks are the shares of companies and the bonds of governments and corporations.

307. The Par of stocks is their face value. Thus,

When a stock is quoted at 105, it is worth 105 % of its face value.

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