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Q. What is an allowance made for the iscount.

money before it becomes due called? A.

of a sum of

Q. What is the sum called, which, put at interest, would, in the given time and rate, amount to the given sum or debt? A. The present worth.

Q. In calculating interest, what would the present worth be called? A. The principal.

Q. What would the given sum, or debt, be called? A. The

aniount.

Q. What is the discount of any sum equal to ? A. The interest of its present worth for the same time.

Q. As operations in discount are substantially the same as in the preceding paragraph, what is the rule, which was there given, that is applicable to discount?

RULE. Divide the given sum, or debt, by the amount of $1, at the given rate and time; the quotient will be the present worth.

Q. How is the discount found? A. By subtracting the present worth from the given sum or debt.

Note. It will be recollected that, when no per cent. is mentioned, 6 per cent. is understood.

2. What is the present worth of $133,20, due hence? . $120.

yr. 10 mo. PROOF & What is the amount of $120 for 1 yr. 10 mo. ? (Perform this example by the rule for calculating interest.) A. $133,20.

4. What is the discount of $660, due 1 yr. 8 mo. hence?

PROOF What is the interest of $600 for 1 yr.

A. $60. 8 mo. ? A. $60.

6. What is the discount of $460, due 2 yrs. 6 mo. hence? A. $60.

7. What is the present worth of $1350, due 5 yrs. 10 mo. hence? A. $1000.

8. Boughtgoods to the amount of $520 on 8 mo. credit; how much ready noney ought I to pay as an equivalent? A. $500. 9. Boughtgoods in Boston, amounting to $1854, for which I gave my note for 8 mo. ; but, being desirous of taking it up, at the expiration of 2 months, what sum does justice require me to pay? A. $1800.

10. What is the discount of $615, due 5 mo, hence?

A. $15. 11. What is the present worth of $1260, due 10 mo.

hence?

A. $1200.

12. What is the present worth of $1272, due yrs. hence, discounting at 3 per cent.? A. $1200.

13. What is the present worth of $51,50, due 6 mo. hence?

(50) Of $204, due 4 mo. hence? (200) Of $13000, due 5 yrs. hence? (10000) Of $9440, due 3 yrs. hence? (8000)

A. $18250.

14. What is the present worth of $515, due 6 mo. hence? (500) Due lyr. hence? (485849) Due 15 mo hence? (479069) Due 20 mo. hence? (468181) Due 4 yrs. hence? (415322) A. $2348,421+.

¶ LXVIII. Time, Rate per cent., and Interest, being given, to find the Principal.

1. What sum of money, put at interest i yr.8 mo. at the rate of 6 per cent., will gain $20,60, interest? The interest of $1 for 1 yr. 8 mo. 10 cts. ; then, $20,60

$,10≈$206, Ans.

RULE. How, then, would you proceed? A. Divide the given gain or interest by the interest of $1 at the given rate and time; the quotient will be the principal required.

2. A certain rich man has paid to him, every year, $48000 interest money; how much money must he have a interest? or what principal will gain $48,000 in 1 year, at 6 pe cent.? A $800000. 3. If a man's salary be $12000 a year, what principal at interest for 1 yr. at 6 per cent. would gain the same

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A. $200000. 4. Paid $45, the lawful interest on a note, for 2yrs. 6 mo.; what was the face or principal of the note? A. $00.

¶ LXIX.

The Principal, Interest, and Time, being given, to find the Rate per cent.

1. If I have $2000 at interest, and at the end of the year I should receive $120 interest, what rate per cent would that be?

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The interest of $2000 at 1 per cent. for 1 year is $20; therefre, $120 ÷ 20 = $6, that is, 6 per cent., the rate required.

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RULE. How, then, do you proceed to find he rate per cent.? A. Divide the given interest by the intrest of the given sum, at 1 per cent. for the given time; the quotient will be the required rate.

2. If I receive $60 for the use of $600, 1 yr. and8 mo., what is the rate per cent.? A. 6 per cent.

3. If I pay $200 for the use of $2000 for 2 yrs.6 mo., what is the rate per cent.? A. 4 per cent.

When the prices of goods are given, to find what is the Rate per cent. of Gain or Loss.

1. A merchant bought cloth for $1,20 a yard, and sold it for $1,50; what was the gain per cent.?

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In this example, we are required to find the rate per cent. The process, then, of finding it, is substantially the same as in the foregoing examples. It has been remarked, that 6 per cent. is 6 cents on 100 cents; that is, the interest is of the principal; which, written decimally, is ,06; 5 per cent. is 0,05; 25 per cent. is 5,25; that is, the rate may always be considered a decimal carried to two places, or 100ths. In the last example, by subtracting $1,20 from $1,50, we have 30 cents gain on a yard, which is 12 of the first cost;=,25=25 per cent., the Answer.

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RULE. How, then, do you proceed to find the rate per cent. of gain or loss? A. Make a common fraction by writing the

gain or loss for a numerator, and the cost of the article the denominator; then change it to a decimal.

2. A merchant bought molasses for 24 cents a gallon, which he sold for 30 cents; what was his gain per cent.?

A. 25-25 per cent. 3. A grocer bought a hhd. of rum for $75, from which several gallons having leaked out, he sold the remainder for $60; what did he lose per cent.?

In this example the decimal is ,2; which, carried to two places, is ,2020 per cent., the Answer.

4. A man bought a piece of cloth for $20, and sold it for $25; what did he gain per cent.? A. 25 per cent.

5. A grocer bought a barrel of flour for $8, and sold it for $9; what was the gain per cent.?

1

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As two decimal places only are assigned to the rate per cent.,,125 is 125 123 per cent., that is, the third place is so many tenths of 1 per cent.; thus, per cent. is,01, and per cent. is,005, or of 1 per cent.

A. 12 per cent.

6. A merchant bought a quantity of goods for $318,50, and sold them again for $299,39; what was his loss per cent.?

A. 6 per cent.
at 40 cents a
At 44 cents ?
At 54 cents?

7. What is the gain per cent. in buying rum gallon, and selling it at 42 cents a gallon? (5) (10) At 46 cents? (15) At 50 cents? (25) (35) At 60 cents? (50) A. 140 per cent.

8. Bought a hhd. of molasses, containing 112 gallons, at 26 cents a gallon, and sold it for $286 a gallon; what was the whole gain, and what was the gain per cent. ?

A. $2,912, and the gain,110 per cent. 9. Bought flour at $9 a barrel, and sold it for $10,80 a barrel; what was the gain per cent.? A. 20 per cent.

10. If I buy a horse for $150, and a chaise for $250, and sell the chaise for $350, and the horse for $100, what is my gain per cent.? A. $,125 = 12) per cent.

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11. If I buy cotton at 15 cents a pound, and sell it for 16 cents, what should I gain in laying out $100? A. $10.

12. Bought 20 barrels of rice for $20 a barrel, and paid for freight 50 cents a barrel; what will be my gain per cent. in selling it for $25,62% a barrel? A. 25 per cent.

¶ LXX. The Principal, Rate per cent., and Interest, being given, to find the Time.

1. William received $18 for the interest of $200 at 6 per cent.; how long must it have been at interest?

The interest on $200 for 1 yr. at 6 per cent. is $12; hence $18 12 = 1,5 14 years, the required time, Ans.

Q. What, then, is the RULE ? A. Divide the given interest by the interest of the principal for 1 year at the given rate, the quotient will be the time required, in years and decimal parts of a year.

2. Paid $36 interest on a note of $600, the rate being 6 per cent.; what was the time? A. 1 year.

3. Paid $200 interest on a note of $1000; what was the time, the rate being 5 per cent.? A. 4 years.

4. On a note of $60, there was paid $9,18 interest, at 6 per cent; how long was the note on interest?

A. 2,55 yrs. 2 yrs. 6 mo. 18 dà.

COMPOUND INTEREST.

↑ LXXI. 1. Rufus borrows of Thomas $500, which he agrees to pay again at the end of 1 year, together with the interest, at 6 per cent.; but, being prevented, he wishes to keep the $500 another year, and pay interest the same as before. How much interest ought he to pay Thomas at the end of the two years?

In this example, if Rufus had paid Thomas at the end of the first year, the interest would have been $500 X 6=$30, which, added to the principal, $500, thus, 500+30,530, the sum or amount justly due Thomas at the end of the first year; but, as it was not paid then, it is evident, that, for the next year, (2d year,) Thomas ought to receive interest on $530, (being the amount of the first year). The interest of $530 for 1 year is 530X6= $31,80, which, added to $530, = 561,80, the amount for 2 years; hence, $561,80-$500=$61,80, compound interest, the Answer. This mode of computing interest, although strictly just, is not authorized by

law

Q. When the interest is added to the principal, at the end of $1 year, and on this amount the interest calculated for another year, and so on, what is it called? A. Compound Interest.

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Q. How, then, may it be defined? A. It is interest on both principal and interest.

Q. What is Simple Interest? A. It is the interest on the principal only.

Hence we derive the following

RULE.

I. How do you proceed? A. Find the amount of the princi pal for the 1st year, by multiplying as in simple interest; then of this amount for the 2d, and so on.

II. How many times do you multiply and add? A. As many times as there are years: the last product will be the amount. III. How is the compound interest found? A. By subtract ing the given sum or first principal from the product.

More Exercises for the Slate.

2. What is the compound interest of $156 for 3 yrs. ? $156= given sum, or first principal.

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Ans. $29,798 , rejecting the three last figures, as of trifling value

3. What will be the amount of $500 for 4 years, at compound interest? A. $631,238+.

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