mo., . PROBLEMS. 1. Find the present worth and true discount of $200, due in 3 yr. 8 mo. 16 da., at 51%. 2. Find the bank discount on $1000, due in 9 without grace, money being worth 6%. 3. Find the difference between the bank discount and the true discount of $1000, due in 9 mo., rate 5%. 4. Find the true discount on $980, due in 6 mo., money being worth 42%. 5. Money being worth 6%, find the difference between the true discount and the bank discount of a note for $525, due in 10 mo., without interest. 6. If I buy goods for $3000 on 3 mo. credit, what discount should I receive if I pay cash, money being worth 53 %? 7. If I pay a debt of $9450 2 yr. 6 mo. 15 da. before is due, what discount should I receive, money being worth 8%? 8. What is the aggregate present worth of two notes, each for $800, due at the end of one and three years respectively, the rate of bank discount being 7%? 9. I wish to place at 6% interest a sum that will amount to $832.50, from Jan. 9, 1897, to Nov. 9, 1898. What is the sum? 10. If you owe $500, to be paid in 1 yr., without interest, what ought you in equity to pay now in order to cancel the debt, if money is worth 7%? REVIEW. a 1. On property worth $15,000, fire caused a loss of $3840. Find the rate per cent. of loss. 2. An agent makes 20% by selling a book for $2.88. Had he sold it for $4.00, what per cent. would he have made ? . 3. Find the interest on $960 for 7 yr. 6 mo. 27 da., at 41%. Also, find the interest at 9%. 4. Find the rate per cent. when $1758 amounts to $1869.34 in 8 mo. 5. Find the time when the principal, at 7%, is doubled. 6. What principal will amount to $2222.22 in 2 yr. 2 mo. 2 da., at 5%? 7. The face of a note is $1975; its date, Sept. 12, 1898 ; its time, 3 mo.; its day of discount, Sept. 26, 1898; its rate of discount, 51%. Find its day of maturity, etc. 53 8. Find the compound interest of $4000 for 2 yr. 6 mo., at 5% per annum. 9. Find the annual interest of $1600 for 4 yr. 8 mo., at 6%. Also, find the annual interest at 4%. 10. Find the present worth of $6450, due in 6 mo., without grace, money being worth 6%. 11. Find the proceeds of a note for $2500, payable in 90 da., without grace, discount, 51%. 12. How much greater is the interest on $25,000 for 3 yr. 6 mo., at 6%, at compound interest, than at annual interest ? 13. What was due Jan. 1, 1898, on a note for $1150, dated Sept. 1, 1894, at 7% ? 14. The interest on a note from Aug. 3 to Dec. 27, at 10% per annum, was $33.00. What was the face of the note? (15.) $8501005 PROVIDENCE, R. I., April 29, 1890. For value received, we promise to pay to Webster, Arnold & Co., Eight Hundred and Fifty Dollars, ninety days after date, with interest at 6%. CHARLES HATHAWAY. Endorsements : Oct. 13, 1890, $40; Jan. 9, 1891, $32; Aug. 21, 1891, $125; Dec. 1, 1891, $10; March 16, 1892, $80. What was due Nov. 11, 1892 ? 16. What is the difference between the simple and the compound interest of $2362.75 for 2 yr. 2 mo. 2 da. at 10% ? 2 17. Having sold 15% of my stock one month, 10% of it the next month, and 25% the third month, I had remaining $2650 worth of goods. What stock had I before I began to sell? 18. Discounted a note of $309.59 for 90 days, at 10%, and invested the proceeds in flour at $10 per barrel. barrel. How many barrels did I purchase ? 19. If at 73% discount $75.15 is received on a 60-day note 20 days after its date, what is the face? 20. What principal at 6% interest will gain $85.60 from May 4, 1897, to Jan. 6, 1898 ? 21. If i'g of the price received for an article equals the loss, what is the loss per cent. ? 22. Find the exact interest of $1200 at 5% from Aug. 19, 1896, to March 4, 1898. 23. Write a note that will be negotiable either in Pennsylvania or New Jersey. EXCHANGE. 1. A Bank Draft, or Bill of Exchange, is a written order directing one person to pay a specified sum to another. 2. A Sight Draft directs payment to be made at sight or on presentation. 3. A Time Draft directs payment to be made at a certain time after sight or date. 4. An Acceptance is a draft with the word “accepted” a written across its face, together with the name of the acceptor, who thus makes himself responsible for payment. а 5. The method of paying by draft money due at a distance is called Exchange. 6. Drafts are bought and sold, and are described as at par, i.e., as having their face value; as at a premium, i.e., as having more than their face value; and as at a discount, i.e., as having less than their face value. General Form of a Draft. . . Na. 275. Philadelphia, Pa., May 10, 18 99. At sight [or. days after sight] Pay to the order of Alexander Richardson. Two hundred mm 00 Dollars, and charge to account of 2001% Simon Osgood. To Brown, Jones f Co. 100 $ Demand Draft. AMERICAN EXCHANGE BANK. St. Louis, Mo., Sept. 7, 1898. Pay to the order of Jonathan Wills. 17 Dollars, value received, and charge the same to account of To Mechanics' National Bank, } S. A. Battaile, 100 No. 9. Cashier. The method of using the above draft is as follows: Assume that Jonathan Wills, of St. Louis, Mo., owing Wm. E. Smith, of Philadelphia, $274.17, and purposing to pay the debt, enters the American Exchange Bank in St. Louis, and, by depositing the requisite sum of money, obtains the draft. He then writes on the back thereof, “ Pay to the order of Wm. E. Smith,” and signs his own name. He finally forwards the draft to Smith in Philadelphia, who, taking it to the Mechanics' National Bank and writing his name on the back, receives the money. Collection Draft. $200x Chicago, dl., March 15, 18 99. Jul, John Hill Two hundredom New York, N. Y. John Hill. The method of using the above draft is as follows: Assume that Henry Smith, of New York, owes John Hill, of Chicago, $200, and that Hill, desiring to collect the money, prepares the above draft, and having endorsed it thus : “ Pay to George Jones, Cashier, or order, for collection,” sends it to the bank in New York of which Jones is cashier. Jones, receiving the draft, presents it to Smith, who writes upon its face, “ Accepted,” signs his name, and the draft is said to be honored. Smith is now under obligation to pay to the bank the $200 at the end of the ten days. Should Smith fail to pay, the draft is said to be dishonored, and is, in consequence, protested unless marked " without protest.” DOMESTIC EXCHANGE. PROBLEMS. 1. What will be the cost of a sight draft on New York for $6000 at 3% premium? Process. |