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INTEREST.

303. When a person borrows money, he usually has to pay a certain per cent of the sum for the use of it for each year.

304. 1. When a sum equal to 6% of the money loaned is paid for the use of it for each year, how much is paid for the use of $100 for 1 yr. or what is the interest for 1 yr.?

2. When the rate of interest is 5% per year, how much will be the interest of $100 for 1 yr.? For 2 yr.? For 3 yr.?

3. When the rate of interest is 8% per year, what will be the interest of $100 for 1 yr.? Of $200 for 1 yr.? Of $500 for 1 yr.?

4. When the rate of interest is 6% per year, what will be the interest of $400 for 1 yr.? For 2 yr.? For 21 yr.? For yr.?

5. When the rate of interest is 4% per year, what will be the interest of $200 for 2

yr.

.?

What will be the sum of $200, the principal, and the interest; that is, what will be the amount?

6. When $400 is loaned for 3 yr. at 5% per year, how much is the interest? What is the amount?

What is the amount of $300 for 3 yr. at 3%? For 2 yr. at 4%? For 4 yr. at 2% ?

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11. $600 for 11 yr. at 3%? 12. $200 for 21 yr. at 5%? 13. $800 for 1 yr. at 6%? 14. $600 for 1 mo. at 6%?

15. $800 for 1 mo. at 6% ?
16. $600 for 1 mo. 10 da. at 6%?
17. $600 for 2 mo. 10 da. at 6%?
18. $800 for 3 yr. at 5% ?

305. The sum paid for the use of money is called Interest. 306. The sum for the use of which interest is paid is called the Principal.

307. The sum of the principal and interest is called the Amount.

308. In computing interest it is usual to regard a year as 12 months, and a month as 30 days.

WRITTEN EXERCISES.

309. 1. What is the interest of $ 420.50 for 5 yr. at 5% ?

SOLUTION.

$420.50 Principal.
.05 Rate.

$21.0250 Interest for 1 yr.

5

$105.1250 Interest for 5 yr.*

Find the interest of:
2. $212.34 for 3 yr. at 4%.
3. $426.12 for 4 yr. at 5%.
4. $324.25 for 5 yr. at 6%.

5. $219.20 for 4 yr. at 7%. 6. $324.16 for 5 yr. at 4%. 7. $582.30 for 6 yr. at 5%.

8. What is the interest of $366.20 for 3 yr. 8 mo. at 6%?

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Find the interest of:

9. $412.20 for 2 yr. 10. $318.36 for 3 yr. 11. $425.24 for 4 yr. 12. $685.60 for 3 yr. 13. $437.28 for 5 yr.

14. $314.26 for 4 yr.

8 mo. at 4%.
6 mo. at 6%.
5 mo. at 5%.
7 mo. at 7%.
2 mo. at 8%.

4 mo. at 3%.

15. $736.16 for 2 yr. 10 mo. at 6%.

16. Find the amount of $524.36 for 2 yr. 5 mo. 18 da. at 7%.

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Find the interest and amount of:

17. $360.24 for 2 yr. 7 mo. 15 da. at 5%.
18. $415.48 for 3 yr. 5 mo. 10 da. at 6%.
19. $217.36 for 2 yr. 6 mo. 15 da. at 4%.
20. $423.35 for 3 yr. 8 mo. 15 da. at 6%.
21. $720.16 for 3 yr. 7 mo. 17 da. at 5%.
22. $468.36 for 3 yr. 9 mo. 10 da. at 4%.
23. $219.47 for 2 yr. 5 mo. 12 da. at 6%.
24. $325.34 for 1 yr. 1 mo. 13 da. at 7%.
25. $436.33 for 4 yr. 2 mo. 10 da. at 5%.
$297.45 for 5 yr. 3 mo. 15 da. at 6%.

26.

310. The six per cent method.

1. What is the interest of $1 at 6% for 1 yr.? For 1 mo., or of a year? For 2 mo. ? For 4 mo.? For 5 mo.? 2. What is the interest of $1 at 6% for 6 da., or of a month? For 12 da. ? For 18 da.? For 24 da. ?

3. What is the interest of $1 at 6% for 1 da., or of 6 da.? For 2 da.? For 3 da.? For 5 da. ?

4. Since the interest of $1 at 6% for 1 yr. is $.06, for 1 mo. is $.005, for 6 da. is $.001, and for 1 da. is $.000, what is the interest of $1 at 6% for 1 yr. 1 mo. 7 da. (6 da. +1 da.)? For 2 yr. 4 mo. 12 da. ?

5. What is the interest of $1 at 6% for 2 yr. 6 mo. 12 da.? Of $100? Of $200? Of $300?

WRITTEN EXERCISES.

311. 1. What is the interest of $240.50 for 2 yr. 4 mo. 12 da. at 6% ?

The interest of $1 for 2 yr.

SOLUTION.

The interest of $1 for 4 mo.

The interest of $1 for 12 da.

The interest of $1 for 2 yr. 4 mo. 12 da.

The interest of $240.50 = $.142 × 240.50, or $ 34.151.

What is the interest of:

2. $480.25 for 1 yr. 8 mo. 24 da. at 6% ?

3. $360.10 for 2 yr. 6 mo. 18 da. at 6% ? 4. $542.80 for 3 yr. 2 mo. 6 da. at 6% ? 5. $920.20 for 2 yr. 5 mo. 9 da. at 6% ? 6. $624.40 for 4 yr. 7 mo. 15 da. at 6% ?

7. $750.50 for 3 yr. 2 mo. 12 da. at 7% ?

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SUGGESTION. Find of the interest of $750.50 for 3 yr. 2 mo. 12 da. at 6%; the result will be the interest at 7%.

8. $864.60 for 2 yr. 4 mo. 15 da. at 5% ?

9. $1236 for 1 yr. 6 mo. 24 da. at 4% ?

PROMISSORY NOTES.

312. A written promise to pay a sum of money at a specified time is called a Promissory Note, or simply a Note.

313. The person who makes the promise, or who signs the note, is the Maker, or Drawer.

314. The person to whom the note is made payable is the Payee.

315. The person who owns the note is the Holder.

316. The sum to be paid is the Face of the note. 317. The following are some forms of notes: $580.44. ALBANY, N.Y., July 16, 1900. Three months after date, I promise to pay George W. Stevenson, or order, Five Hundred Eighty

value received, with interest.

44 dollars, for

100

WILMUR H. FITCH.

$2000.

SAN FRANCISCO, CAL., August 15, 1900.

For value received, on demand, I promise to pay Edward Griffith, or bearer, Two Thousand Dollars.

HARVEY D. BROWN.

318. A note should contain the name of the place where it is made, the date, the time when payable, the face of the note written in words, and the words "for value received," also the words "with interest," if such be the contract.

1. When no rate of interest is specified, the legal rate, or the rate authorized by law in the place where the note is made, is always understood.

2. If no place of payment is named in the note, it is payable at the maker's place of business.

3. If the words "with interest" are omitted, the note will not draw interest until it is due.

319. The person who writes his name across the back of a note to transfer it to another person, or to guarantee its payment, is called an Indorser.

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