3. In what time will $72.50, at 6%, give $14.68 interest? Ans. 3 yr. 4 mo. 15 da. 4. In what time will $13.25, at 6%, give $7.0621 interest? Ans. 8 yr. 10 mo. 18 da. 5. In what time will $1515, at 7%, give $791.84 interest? Ans. 7 yr. 5 mo. 18 da.

6. The amount of a principal for a certain time, at 4%, is $2838.33, and for the same time at 9% is $3261.25; required the principal and time. Ans. $2500; 3 yr. 4 mo. 18 da.

7. A sum of money on interest amounts at 41% for a certain time to $5208.92, and at 9% for the same time to $6092.84; required the principal and time. Ans. $4325.

CASE IV.

622. Given, the principal, the time, and the interest, or the amount, to find the rate.

1. At what rate will $750 in 2 yr. 4 mo. give $105 interest?

SOLUTION. We find that the interest of $750 for 2 yr. 4 mo. at one per cent. is $17.50. If the principal in the given time, at one per cent.,gives $17.50 interest, to give $105 interest, it will require as many times 1 per cent. as $17.50 is contained times in $105, or 6 per cent. Hence the following

Rule. Divide the given interest by the interest of the principal for the given time at one per cent.

NOTE. When the amount is given, subtract the principal from the *amount to find the interest, and then proceed as before.

At what rate

2. Will $480, in 6 yr. 3 mo. 18 da., give $211.68 interest?

Ans. 7%.

3. Will $960, in 1 yr. 1 mo. 1 da., give $52.13 interest?

Ans. 5%.

4. Will $13.50, in 10 yr. 8 mo. 29 da., give $26.56 amount?

Ans. 9%.

5. Will $26.50, in 8 yr. 9 mo. 11 da., give $17.45 interest?

Ans. 7%.

6. The amount of a certain principal for 7 yr. 5 mo. 18 da. at a certain rate is $2306.84, and for 5 yr. 4 mo. 21 da. at the same rate $2086.789; required the principal and rate.

Ans. Principal, $1515; rate, 7%.

INTEREST ON DAILY BALANCES.

623. Interest is allowed by some bankers on daily balances left in their hands, making a settlement at the end of each month or quarter. Exact interest at 4% is usually allowed.

As each daily balance is entitled to one day's interest, the sum of the balances is entitled to one day's interest. If, however, any of the balances remain unchanged for several days, they may be multiplied by the respective number of days and these products added in the sum of balances instead of writing them for each day separately.

OPERATION.

1. I deposited in bank $500, Aug. 1; $150, Aug. 7; drew out by check $200, Aug. 15; deposited $350, Aug. 20, and drew $240, Aug. 27; what interest was due Sept. 1, at 4% ? SOLUTION.—If $500 was deposited Aug. 1, and no change made in the balance till Aug. 7, we have 6 daily balances of $500 each, which is equivalent to $3000 for one day; in the same manner $650 for 8 days is equivalent to $5200 for one day; and we proceed

thus till all the balances for the month are

4

found, when we find their sum to be $18,850; but if the interest for one year is of the principal, for one day it is 5 of 10, or 125 of the principal; and of $18,850 equals $2.065. Hence the following

$500×6= $3000 650×8= 5200 450×5= 2250 800×7= 5600 560×5 2800

Sum of balances = $18850 365×180=0125

18850 9125 = 2.065+

Rule. Divide the sum of the daily balances by 9125 to find the exact interest at 4%.

NOTE. If we take the year as 360 days we find the interest at 4% by dividing by 9000, since 0 of 180 = 500; at 6% by dividing by 6000, for 360 of 180=6000; at 5% by dividing by 7200, for 30 of 180=7200.

2. What is due March 1, 1862, to a person who deposited $1500 Feb. 1, $750 Feb. 12, $950 Feb. 19, and $2000 Feb. 28; and drew out $575 Feb. 5, $800 Feb. 14, and $1000 Feb. 23; int. 4%? Ans. $4.08.

3. What would be the balance due in the previous example, taking 360 days to the year, at 4%; what at 3%; what at 5% ? Ans. $4.14; $3.11; $5.18-.

INTEREST ON PROMISSORY NOTES.

624. A Promissory Note is a written promise of the payment of a certain sum of money on demand, or at a specified time.

625. The Face of a note is the sum whose payment is promised. It is written in words in the body of the note, and in figures at the top or bottom.

626. The Maker of a note is the party who promises to make the payment. The maker of a note signs it.

627. The Payee is the party to whom it is made payable. A note is said to be "made in favor of" the payee. The owner of a note is called the Holder.

628. A Time Note is one made payable at a specified time. When no time is specified, the note is due on demand. 629. A Joint Note is a note signed by two or more persons who are jointly liable for its payment.

630. A Joint and Several Note is a note signed by several persons who are both jointly and singly liable for its payment.

631. A Principal and Surety Note is one in which another person becomes security for the payment of the note.

A surety note should be made payable to the order of the surety, who should indorse it on the back to the order of the creditor. It is held that a note made in favor of the creditor and indorsed by the surety, does not bind the latter to the payment of the debt.

632. A Negotiable Note is a note that can be transferred from one party to another. A note is negotiable when made payable to "bearer," or to the "order" of the payee.

633. The Indorser of a note is the party who puts his name on its back as security for its payment. The writing of the name on the back of a note is called an indorsement.

It is customary in raising money on notes, to obtain one or more responsible indorsers as security for its payment. If the maker refuses to pay the note, when due, each indorser is liable for its whole amount in the order of signing, unless he writes above his name "without recourse," or unless there is an agreement between two or more indorsers to share the loss.

When the maker fails to pay a note, it is usual for the holder to make his demand on the last liable indorser, who pays the note and

then gets the amount from the preceding indorser, and so on, up to the first indorser. The holder, however, has the option of collecting the amount from any liable indorser, and when so collected, all subsequent indorsers are released, the indorser who pays becomes the holder, and may collect from any prior liable indorser, and so on up to the first.

634. A note payable to bearer is negotiable without indorsement. A note payable to order must be indorsed by the payee before it is negotiable. A note not negotiable may be transferred by assignment.

635. An Indorsement in Blank is simply the name written on the back of the note. A special indorsement is an order for the note to be paid to a particular person.

A note should contain the words "value received," otherwise the holder may be required to prove that value was received. The words "without defalcation" are inserted in Pennsylvania to make a note negotiable; in New Jersey, "without defalcation or discount;" and in Missouri, "negotiable and payable without defalcation or discount."

If a note reads "with interest," it draws interest from date; otherwise it draws interest from the time of maturity until paid. A note may draw interest from a particular time after date, if so specified in the note. When no rate is mentioned the legal rate of the State is understood.

636. The Maturity of a note is its becoming legally due at the expiration of the time. In most of the States a note matures three days after the time specified, unless the words "without grace" are inserted.

637. Days of Grace are the three days usually allowed by law for the payment of a note after the expiration of the time specified in the note.

When grace is allowed the note matures on the last day of grace. When no grace is allowed it matures at the expiration of the time specified. If a note is payable on demand, it is legally due when presented.

If a note becomes legally due on Sunday or a legal holiday, it must be paid in most States on the day preceding. In Connecticut three days grace is allowed on notes for $35 or more, but not on notes for a less amount; if the last day is a legal holiday falling on Sunday, the note is due on Monday. In Maine and Nebraska, if the third day is a legal holiday falling on Monday, the note is payable on Tuesday; and in New York a note maturing on a legal holiday, or Monday observed as such holiday, is payable the following day. The following notation indicates when a note is nominally and legally due: May 69, 1875.

When the time of a note is stated in months, calendar months are meant. A note for 4 months dated October 29, 30, or 31, would expire on the last day of February, and be legally due March 3.

638. A Protest is a written declaration made by a notary. public, that the maker of a note has failed to pay it.

The neglect to protest a note on maturity releases an indorser from all obligation to pay it, unless the words " waiving demand and notice" appear above the indorser's signature.

There are two modes of estimating the time between different dates. The first is by compound subtraction, which is still generally used in partial payments. The second is by determining the number of entire years, if any, and then reckoning the exact number of days left. This latter method is now generally adopted by merchants in finding interest on items in an account, and for calculations for short periods, and will be used in the following examples.

639. The Principal Kinds of notes will now be given, and the calculation of the interest upon them required.

$195.75.

DEMAND NOTE.

MILLERSVILLE, PA., MAY 9, 1874. For value received, I promise to pay David M. Sensenig, or order, on demand, One Hundred and Ninety-five 75% Dollars, without defalcation. E. O. LYTE.

1.

$750.

TIME NOTE.

LANCASTER, PA., MARCH 15, 1874.

Sixty days after date, I promise to pay N. C. Fetter, or bearer, Seven Hundred and Fifty Dollars, with interest, for value received, without defalcation. FRANK ALBERT. What will be due at maturity? Ans. $757.87.

2.

$4500.

PRINCIPAL AND SURETY NOTE.

ST. LOUIS, Mo., JUNE 23, 1875. Two months after date, I promise to pay H. S. Snyder, or order, Forty-five Hundred Dollars, with interest, value received, negotiable and payable without defalcation or discount. GEO. W. HULL.

On demand, for value received, we promise to pay John Arnold, or order, Six Hundred and Seventy-five Dollars, with interest, without defalcation or discount.

DANIEL SHOTWELL.
EDWARD UNDERHILL.

What will be due April 17, 1875?

Ans. $686.56.