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ments : Sept. 21, $268.60; Oct. 22, $280.36; Nov. 6, $300; Dec. 2, $90. What remained due after Dec. 2?

8. A note for $4300, dated Feb. 8, 1898, has the following endorsements on it: Mar. 20, 1898, $900; April 20, 1898, $700 ; July 25, 1898, $600; Aug. 17, 1898, $500; Nov. 25, 1898, $400. What is due Jan. 1, 1899, at 6% ?

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(9.) $9600,000

HARRISBURG, Pa., July 20, 1898.

Thirty * days after date, for value received, I promise to pay Charles Davenport, or order, Nine Thousand Six Hundred Dollars, without defalcation.

JAMES H. BOYD.

Endorsements : Aug. 30, $200; Oct. 12, $400; Nov. 10, $600; Dec. 20, $800. What is due July 15, 1899 ?

10. A note for $7000, at 90 days, dated Sept. 25, 1898, has the following endorsements : Dec. 31, $300; Jan. 18, 1899, $500; May 20, 1899, $600; Aug. 10, $100. What was due Sept. 1, 1899 ?

11. On a note for $2898, dated Jan. 4, 1897, and bearing interest at 51%, the following payments were made : Jan. 20, 1897, $600; Feb. 25, 1897, $700; June 10, 1897, $400; Sept. 30, 1897, $360. How much is due Jan. 1, 1898.

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The United States Rule.

This rule applies to notes settled beyond the limit of a year, and forbids the deducting of a payment unless the payment equals or exceeds the interest due. The compounding of interest is thus prevented.

* Interest must not be computed for these 30 days.

MODEL SOLUTION. $475500

NEW YORK, May 1, 1896. I promise to pay George Jenkins, or order, Four Hundred Seventy-five Dollars, on demand, with interest at 7%, for value received.

THOMAS WRIGHT. Endorsements : Dec. 25, 1895, $50.00; July 10, 1896, $15.75; Sept. 1, 1897, $25.50; June 14, 1898, $104.00. How much is due April 15, 1899 ?

$475.50.

21.64. $497.14.

50.00. $447.14.

Process.
Face of note

Date of 1st pay't, 1895, 12, 25.
Date of note,

1895, 5, 1.
Interval

7 mo. 24 da. Int. of face for interval

Amount 1st payment (exceeding interest)

1st balance
As the next two payments will not equal or exceed the interest
due, we compute the interval to June 14, 1898.

Date of 4th pay't, 1898, 6, 14.
Date of 1st pay't, 1895, 12, 25.
Interval,

2 yr. 5 mo. 19 da. Int. of 1st balance for interval

Amount 2d payment .

$15.75 3d payment.

25.50 Sum less than int. due

$41.25
4th payment

104.00
2d balance
Date of settlement, 1899, 4, 15.
Date of 4th pay't, 1898, 6, 14.
Interval,

10 mo. 1 da. Int. of 2d bal. for interval

Balance due April 15, 1899.

77.29. $524.43.

145.25. $379.18.

22.19. $401.37. RULE.

1. Find the amount of the principal to the given date at which the payment, or sum of the payments, is equal to or greater than the interest.

2. From this amount deduct the payment, or the sum of the payments.

3. Consider the remainder as a new principal and proceed as before.

PROBLEMS.

(1.)

$3000100

PHILADELPHIA, PA., Feb. 26, 1895.

On demand, I promise to pay George Palmer Three Thousand Dollars, with 6% interest.

JOHN JAY. Payments were made on this note as follows: Sept. 10, 1895, $25.00; Jan. 1, 1896, $500.00; Oct. 25, 1896, $75.00; April 4, 1897, $1500.00. How much was due Feb. 20, 1898 ?

(2.) $750100

LYNN, Mass., July 15, 1893.

Three months after date, I promise to pay George Mason, or order, Seven Hundred and Fifty Dollars, for value received.

GEORGE PALMER.

Payments were made as follows: Aug. 3, 1896, $75.00; May 1, 1897, $560.00. What was due Feb. 20, 1898 ?

3. A note was given Jan. 1, 1890, for $700. The following payments were endorsed upon it: May 6, 1890, $85; July 1, 1891, $40; Aug. 20, 1891, $100; Jan. 10, 1893, $350. How much was due Sept. 30, 1894, interest at 6% ?

4. What is due Aug. 18, 1894, on a note for $400, dated April 1, 1892, with interest at 6%, on which are the following endorsements : Jan. 13, 1893, $50; Sept. 22, 1893, $10; April 25, 1894, $125.

(5.) $75010

PHILADELPHIA, PA., May 10, 1895.

Three years after date, for value received, I promise to pay Thomas Newbury, or order, Seven Hundred and Fifty Dollars, with interest, without defalcation.

SAMUEL TOWNSEND.

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Endorsements : Jan. 15, 1896, $124.75; Sept. 12, 1896, $20; Dec. 16, 1897, $216.80. How much remained due May 10, 1898 ?

6. A note for $5600 was given May 1, 1895, and was endorsed as follows: Oct. 17, 1895, $350; Feb. 18, 1896, $455; July 10, 1896, $318.50. What was due May 1, 1897, interest at 7%?

7. What is due Dec. 31, 1898, on a note for $2800, dated Oct. 10, 1894, with interest at 7%, on which are the following endorsements : April 1, 1895, $66.60; July 21, 1896, $300; June 15, 1898, $300 ?

(8.) $46001000

CHICAGO, ILL, April 6, 1896. On demand, I promise to pay George K. Brown, or order, Four Thousand Six Hundred Dollars, for value received, with interest at 5%.

CHARLES MOREHEAD.

Endorsements : July 10, 1897, $1360 ; Oct. 4, 1897, $500; Jan. 16, 1898, $660; June 21, 1898, $700. How much was due Jan. 21, 1899 ?

9. A note for $8580 was given July 12, 1894. Endorsed : Jan. 8, 1895, $300; April 26, 1896, $500; July 16, 1897, $335 ; Oct. 8, 1897, $250. What was due at settlement, Jan. 1, 1898 ?

10. A note was drawn in Michigan for $2774.65, payable in 2 years, with interest, and dated March 15, 1896. Payments were made as follows: July 30, 1896, $100; Dec. 8, 1896, $200; Jan. 5, 1897, $250 ; May 17, 1897, $600; Jan. 1, 1898, $600. How much remained unpaid, April 1, 1898 ?

BANK DISCOUNT. 1. A Bank is an institution established for the purpose of receiving, loaning, and issuing money.

NOTE.-All banks do not issue money.

2. For cashing notes in advance of their maturity, banks make a deduction from their face value. This deduction is called Bank Discount.

3. Bank discount depends upon Face, Rate, and Time, and is computed precisely like simple interest.

4. The Time of Discount of a note is the interval between the day of its presentation and the day of its maturity. This interval is commonly called time to run.

NOTE.-In some States the time to run is increased by 3 days, called "Days of Grace."

5. The Proceeds of a note equal its Face less the Discount.

MODEL SOLUTION. $2360,0%

PHILADELPHIA, Pa., Feb. 26, 1897.

Three months from date, I promise to pay to the order of George Gross, at the West Philadelphia Bank, Twenty-three Hundred and Sixty Dollars, for value received.

JAMES JENKINS.

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