sum, and the bank should deduct the interest for one year, which would be six dollars, and keep that interest for one year; the interest of which would be 36 cents. It would stand thus: If the bank will gain D6.36 on D94 loaned to A., how much will D100 gain? As D94: D6.36 :: D100: D6.76.57 Ans. I believe the above is generally practised in all banks throughout the United States, with the addition of 3 days (commonly called days of grace) which are allowed the payer on all notes, after the time expires for which they were drawn.

RULE V.

Multiply the dollars by the number of days, and divide the product by 6, and the quotient will be the answer in mills; which point off into dollars, &c. Or, work by rule 1st, and divide by 360, the answer will be the same.

52. What is the interest of D1542 for 90 days, at 6 per cent.?

53. What is the interest of D70 for 90 days, at 6 per cent.?

Ans. D1.05.

54. What is the interest of D98 for 90 days, at 6 per cent. ? Ans. D1.47. 55. What is the interest of D400 for 90 days, at 6 per cent.? Ans. D6.00. 56. What is the interest of D950 for 90 days, at 6 per cent.? Ans. D14.25. 57. What is the interest of D499 for 57 days, at 6 per cent. ? Ans. D4.74. 58. What is the interest of D900 for 59 days, at 6 per cent.? Ans. D8.85. 59. What is the interest of D3000 for 60 days, at 6 per cent. ?" Ans. D30.

60. What is the interest of D600 for 103 days, at 6 per cent. ? Ans. D10.30. 61. What is the interest of D3000 for 104 days, at 6 per cent.? Ans. D52.00

Interest on notes, &c., where partial payments have been made.

As it respects the computation of interest on notes, or bonds, where partial payments or endorsements have been made, there are various ways: in some states the rule is established by law, in others it is not regulated by statute, but the courts of equity adopt such rules as they think proper.

The limits of this work will not permit a full investigation; several rules and examples will be given, and the principle left to the action of those concerned, as no rule given by any author will be strictly adhered to. The following appears to be a fair and equitable method of computing interest, when endorsements are made; it is always presumed that the note is due when payments are made, and that the holder of the note is entitled to the interest accruing thereon, whether the note calls for periodical payments or not; the intention is to give the interest to the person who has a just demand, and is entitled to receive the principal, as well as interest. Cases, however, may occur where a departure from this rule may be necessary, as when there are endorsements made before the note becomes due; in this case the person making the endorsement is entitled to compute interest on it to the time the note becomes due, but no longer, for then the holder of the note may demand payment in full.

62. On demand, I promise to pay A. B., or order, the sum of five hundred dollars, with interest, for value received. D500.00. January 1, 1843. C. P. Endorsements: April 1, 1843, D200; Oct. 1, 1843, D200.

The 2d example is correct. A. B. had a right to receive the interest on D9 9mo.: D3 3mo.=44.5, this is the difference in the 1st and 2d examples.

63. A. received of B. his note for D100, dated January 1, 1820, payable in 1 year, with 6 per cent. interest; and July 1, A. received of B. fifty dollars, which A. credited on the note, what was the balance due from B. to A. on January 1st, 1821, one year?

In this case D54.50 is the equitable balance. If the above note had been on demand, or due at the time of payment (July 1, 1820) the balance on the 1st of January, 1821, would have been D54.59, difference 9 cents, which would have arisen on the D3 for 6 months; this is the same as the 1st and 2d examples.

"We have no special acts of assembly in this state. [Penn.] Chief Justice McKean, in 1785, fixed the following rule for calculating interest [see Dallas, 1st, p. 124]: That the interest of the money paid in before the time be deducted from the interest of the whole sum due at the time appointed by the instrument for making the payment." As per examples above. 64. Due A. B. or order, the sum of one thousand dollars on demand, with interest, for value received. January 1, 1842. D1000.00.

C. D. Endorsements: July 1, 1842, D300; January 1, 1843, D300; July 1, 1843, D200; required the balance due January 1, 1844, interest 6 per cent.

The following is the rule established in the state of New York (see Johnson's Chancery Reports, vol. 1, page 17). The same rule is also adopted in Massachusetts and in most of the other states.

RULE I.

Compute the interest on the principal to the time of the first payment, and if the payment exceed this interest, add the interest to the principal and from the sum subtract the payment; the remainder forms a new principal.

2. But if the payment is less than the interest, take no notice of it until other payments are made, which in all shall exceed the interest computed to the time of the last payments; then add the interest so computed to the principal, and from the sum subtract the sum of the payments; the remainder will form a new principal on which interest is to be computed as before.

Note. The above rule does not differ materially from the preceding examples, and is the same in its general application; the object in computing interest on notes, should be to keep down the interest, that it may not form a part of the principal carrying interest, and in the second place to pay the interest to the one entitled to receive it.

(When partial payments are made at short periods, the following rule will apply.)

RULE.

Subtract the several payments from the original sum in their order, placing their dates in the margin.

65. Suppose a bill of D359 was due January, 1839, and D75 was paid February 3, D50 March 5, D80 April 9, D145 June 7; what interest is due at 5, 6, and 7 per cent. ?

Dates. January 1,

Feb. 3, paid

Bill. Days. Products.

D. 350 33 11550 7300)36230(4.963D.

(See next page to make a divisor, &c.)

(See Note at the conclusion of Simple Interest.)