PROBLEMS. What principal will amount 1. In 3 yr., at 6%, to $118? 2. In 41 yr., at 8%, to $68? 3. In 2 yr., at 9%, to $363 ? 5. In 1 yr. 9 mo., at 8%, to $228? Written Exercises+ EXAMPLE.What principal will in 1 yr. 4 mo., at 6%, amount to $1188? SOLUTION. $1188 $18.08 = $1100. $1188, or 1100 times. amount to $1188. EXPLANATION.-Since in 1 yr. 4 mo., at 6%, $1 will amount to $1.08, it will require as many dollars to amount to $1183 as $1.08 is contained times in Therefore, $1100 will in 1 yr. 4 mo., at 6%, 359. RULE.-Divide the given amount by the amount of 4. In 2 yr. 4 mo. 18 da., at 6%, to $228.60? Ans. $200. 5. In 1 yr. 6 mo. 12 da., at 8%, to $561.334? 6. In 2 yr. 2 mo. 18 da., at 7%, to $462.06%? 7. In 3 yr. 8 mo. 9 da., at 10%, to $205.37? Ans. $500. Ans. $400. CASE V. 360. The Interest, Principal, and Rate % given, to find the Time. Oral Exercises EXAMPLE.-In what time will $75 gain $9, at 6%? SOLUTION.—At 6%, $75 will in 1 yr. yield 75 × $.06, or $4.50. If $75 yield $43 in 1 yr., it will take as many years to gain $9 as $41 is contained times in $9, or 2 times. Therefore, it will take $75, at 6%, 2 yr. to gain $9. PROBLEMS. 1. In what time, at 6%, will $10 gain $1.20 ? $1.50? $1.80? $2.40? $7.20 ? $8.70? $10? 2. In what time, at 7%, will $15 gain $1.05? $3.15? $4.20? $5.25 ? $7.35? $8.40? $15? 3. In what time, at 5%, will $25 gain $1.25 ? $2.50? $.621 $.93 ? $6.25? $4.331 ? Written Exercises+ EXAMPLE. In what time will $137.50 gain $28.871, at 7%? SOLUTION. $28.87 = 3. .07 x $137.50 gain in 1 yr. 137.50 × $.07 = $9.625; and if $137.50 gain $9.625 in 1 yr., to gain $28.875 will take as many yr. as $9.625 is contained times in $28.875, or 3 times. Therefore, at 7%, $137.50 will gain $28.875 in 3 yr. 361. RULE.-Divide the given interest by the interest of the given principal at the given rate for one year; the quo tient is the time in years. P (1) B PROBLEMS. In what time will 1. $256.25, at 5%, yield $51.25? 4. $480, at 3%, yield $74.28? Ans. 4 yr. Ans. 4 mo. Ans. 124 da. Ans. 5 yr. 1 mo. 27 da. Ans. 4 yr. 10 mo. 15 da. 5. $225, at 12%, yield $131.625? 6. $400, at 7%, yield $62.06? Ans. 2 yr. 2 mo. 18 da. PROMISSORY NOTES. 362. A Promissory Note is a written promise to pay a specified sum of money, either on demand, or at some designated time after the date of the note. 363. When the time of payment is specified in the note it is customary to allow three more days, called Days of Grace. 364. A note is said to mature on the day on which it is due. 365. The promise is usually either to pay the bearer, or some person, mentioned in the note, or to his order. 366. A Negotiable Note is one that can be transferred, or sold. 367. A Joint Note is one signed by two or more persons. 368. The Face of a Note is the sum promised in the note. This sum should always be written in words in the body of the note. A promissory note should have in it the words "value received,” or "for value received," as without these words, the holder may be required to prove that value was received. In some States it is customary also to insert " without defalcation," though for what object is not very plain. 369. The Maker, or Drawer, of a note is the person who signs it. 370. The Holder, or Payee, is the person to whom it is to be paid. 371. An Indorser is the person who writes his name upon a note, or other obligation, usually upon its back, thereby becoming responsible for its payment. 372. A Protest is a legal notice to the indorser of a note that the maker has failed to pay the note when due. As notes are not always paid when due, and holders agree to take a portion of the payment, and wait for the balance, receiving interest on the unpaid part, we have the term 373. A Partial Payment, which is a payment of part of a note, or any other legal obligation, such as a mortgage, article of agreement, &c. If stated on the back of the instrument in writing by the holder, it is called an indorsement. PARTIAL PAYMENTS. To compute interest when partial payments have been made. Settlements are made by the Courts of the United States, and by most of the individual States, by what is known as the United States Rule. $3000. EXAMPLE. PITTSBURGH, Sept. 1, 1874. On demand, for value received, I promise to pay to the order of J. M. Logan, three thousand dollars, without defalcation, with interest from date. JAMES MEREDITH. On this note were these indorsements: Received, Jan. 1/75, $500; March 1/75, $25; Apr. 7/75, $600; Oct. 13/75, $1000; May 19/76, $200. How much was due June 1/76 ? 40.96 $2600.96 2d Principal...... Int. of 2d Prin. from Jan. 1 to Apr. 7/75..... Amt. to Apr. 7/75.... 2d Payment (not equal to Int.) and 3d Payment... 3d Principal... Int. of 3d Prin. from Apr. 7 to Oct. 13/75.... Amt. of 3d Prin. to Oct. 13/76.. 4th Payment... . 4th Principal.. . . . . Int. from Oct. 13/75 to May 19/76. Amt. of 4th Prin. to May 19/76.. 625. $1975.96 61.255 $2037.215 1000. $1037.215 37.340 $1074.555 5th Payment... 5th Principal.. Int. from May 19 to June 1/76.. Sum due June 1/76.... 874.555 1.749 .$876.304 374. Rule of the United States Courts. Find the amount of the principal up to the time of the first payment, if that payment equals or exceeds the interest; but if it does not, then find the amount up to the time when the sum of two or more payments equals or exceeds the interest. From this amount subtract the first payment, or, if necessary, the sum of the two or more payments. Use the remainder as a new principal, and proceed as before, until time of final settlement. |