1. How much will Mr. Bardwell receive if he presents the note at the bank Apr. 20?

the note to

a. The officials will first find when the note is due. This is found by adding the time specified in the date. This is called the date of maturity. 1060 d. = June 9.

Thus Apr.

NOTE: When the time of a note is expressed in months, calendar months are used in finding the date of maturity. When the time is expressed in days, the exact number of days is used. Formerly three days of grace were allowed, but since they have been abolished in most states they will not be considered in this book. They should be included in states that still allow them. In that case this note would be due June 12.

b. The bank will next find the exact number of days from Apr. 20 to June 9, which is 50 days.

c. They will next find the simple interest on $1200 for 50 days, which is $10.00.

d. Keeping this $10 as their discount they will give Mr. Bardwell $1200 $10 = $1190.

2. Bank discount is the interest retained by a bank for advancing money on notes before they become due.

3. The proceeds is the amount received by the borrower and is equal to the face of the note less the discount.

4. The number of days from the date when the note is discounted to the date of maturity is called the term of discount.

NOTE: - In some states the term of discount would include both April 10 and June 9, making the term of discount 51 days. You should conform to the custom of your locality.

5. If this note is not paid by Mr. Jones on or before June 9, the note is said to be protested, and a notary public notifies Mr. Bardwell within 24 hours.

6. Why should a business man be careful not to allow his note to be protested?

7 What is the date of maturity of a note? How is it found?

8. What is meant by term of discount?

1. A 60 day note for $846, without interest, dated Feb. 8, was discounted Feb. 23, at 6%. Find the proceeds. Feb. 8 +60 d. = Apr. 9. Date of Maturity.

a. This shows the method of finding the date of maturity when the time is in days. There are 20 d. in February after the 8th. There are 31 d. in March. It will take 9 days in April to complete the 60 days.

b. This shows the method of finding the term of discount. There are 5 d. in February after the 23d. There are 31 d. in March. There are 9 d. in April to the date of maturity. The sum is 45 d., the term of discount.

c. Find the simple interest on the face for 45 d. This is $6.35, called bank discount.

d. Subtract the discount from the face. The remainder is $839.65, the proceeds.

NOTE: If this had been a 2 mo. note, we should have found the date of maturity like this: Feb. 8 + 2 mo. = Apr. 8.

Find the bank discount and the proceeds of the following non-interest bearing notes:

1. A promissory note is a written promise made by one person to pay another a definite sum of money on demand or at a definite time.

2. Study the two forms of notes on pages 30 and 115, till you can write either form from memory.

3. In each of these notes name:

a. The face, the sum of money specified.

b. The place and date when written.

c. The maker, the person who promises to pay.

d. The payee, the person to whom the money is to

be paid.

e. The time and place of payment, if mentioned. f. The rate of interest if an interest bearing note. g. The indorser, the person who writes his name on the back.

4. When a person makes a payment in part or in full of any bill or account he should receive a receipt. A receipt is a written statement of the receipt of money or other property, and should give the date, the place, the persons interested, and sometimes for what the money was given.

5. The following is a usual blank form to fill out when full payment is made. When only part payment is made the words, "to apply on account" are written in place of "in full of all demands to date.”

1. A man took a 3 mo. note for $220 in payment for a horse. He immediately discounted the note at a bank at 6%, and found that he had lost 333% of what the horse originally cost him. Find the cost.

2. A father placed $100 in a savings bank in his boy's name, when the boy was 10 yr. old. Every half-year the bank added 2% to the deposit for interest, and the father added $100 every year. What will be the amount on de

posit when the boy is 15 years old?

3. If the rate of discount at a bank is 6%, what will be the proceeds of a 3-mo. note of $570, dated May 23, and discounted June 14?

4. The face of a note is $2160, the date July 12, the time 3 mo., the date of discount Sept. 9. Find the proceeds. 5. A man borrowed money at 6% and bought 1876 bu. of wheat at 75 a bushel, Sept. 5, 1910. On June 15, 1911, he sold all the wheat at 87 a bushel. After paying back the money he had borrowed, how much had he left as his gain?

6. On Sept. 14, 1910, James Murray wrote a check on the Merchants Bank in favor of Chas. S. Holmes for $150. Write the check.

7. The following day Mr. Holmes sent Mr. Murray a receipt on account. Write the receipt.

8. Mr. C. J. Morse owned 60 acres of woodland. Nov. 15 he sold of the land to R. S. Miller at $75 an acre and took a 3-mo. note in payment. Write the note.

9. Mr. Morse had the note discounted Dec. 1, at 6%. How much did he receive for the land?

10. State in order the three steps to be taken in finding the bank discount on any note.

11. If a man places $600 in the savings bank, when the rate of interest is 4% per annum, payable semi-annually, how much can he withdraw at the end of 1 yr. 6 mo.?

3. If 40 bu. of corn cost $12, what will 400 bu. cost?

4. 9:x 12:4. Find the value of x.

=

19. Find the bank discount on a note of $1200, when the term of discount is 60 days and the rate 6%.

20. A note of $1000 was discounted for 3 mo. at 6%. Find the proceeds.

21. A 3-mo. note was dated March 10. Find the date of maturity.

22. Who is the payee, in every note or check?

23. The amount of taxable property is $40,000, and the rate of taxation is 20%. What can you find in this example? Find it.

24. Apple trees are listed in the catalogue at $1. A farmer bought 100 for $75. What per cent of discount from the list price did he receive on each tree?

25. The list price of the manufacturer of chairs was $24 a dozen. A retailer sold them at $3 each and gained 100%. What rate of discount did he receive from the list price?

26. Ingrain carpet is 1 yd. and Brussels carpet is 27 in. wide. How many yards of each kind of carpet will be needed for a room 9 ft. by 18 ft., if the breadths run lengthwise?

27. What numbers between 24 and 84 are perfect squares?