8. What will be the face of a sight draft on Paris which is bought in Baltimore for $1575 in currency, when the rate of exchange is 5.19 francs for a dollar, and gold is at 1074?

9. An American bought a sight draft on Paris for 5725 francs. What was the currency value of the draft when exchange was at 5.20 francs for a dollar and gold was 1061?

10. What is the value in currency of a bill of exchange, at sight, on London, for £895 10s., when exchange is $4.87 for a pound sterling and gold is quoted at 106g?

11. An American in Philadelphia purchased a sight draft on London for £585 10s. 5d. What was the currency value of the draft, if exchange was at par and gold at 1074?

12. What will be the cost, in currency, of a sight bill of exchange on London for £875 5s. 4d., when exchange is $4.881 for a pound sterling and gold is quoted at 1047?

AVERAGE OF PAYMENTS.

458. 1. How long may $1 be kept to balance the use of $5 for 2 months?

2. How long may $1 be kept to balance the use of $7 for 3 months?

3. How long may $10 be kept to balance the use of $5 for

2 months?

4. How long may $20 be kept to balance the use of $10 for

4 months?

5. How long may $50 be kept to balance the use of $25 for

7 months?

6. How long may $40 be kept to balance the use of $80 for

3 months?

7. I owe B two debts of equal months and the other in 6 months. at one payment?

amount, one due in 3 When may I pay both

8. I owe A two debts of $20 each, one due in 2 months and the other in 4 months. When may I pay both at one payment?

9. If I pay $20 three months before it is due, how long after it is due may I keep $30 to balance it?

10. If I owe $20, due in 4 months, and $40, due in 6 months, at what time can I equitably pay both debts at one payment?

11. If I owe $30 due in 3 months, and $10 due in 7 months, when may I equitably pay both debts by a single payment of $40%

DEFINITIONS.

459. Averaging Payments is finding the equitable time for discharging, by one payment, sums due at different times.

460. The Average Time is the date at which the debts may be equitably discharged by a single payment.

461. The Term of Credit is the time that must elapse before the debt becomes due.

462. The Average Term of Credit is the time that must elapse before the debts due at different times may be equitably discharged by a single payment.

CASE I.

463. When the terms of credit begin at the same date.

1. A. T. Stewart & Co. sold a bill of goods upon the following terms: $400 cash, $300 due in 2 months, and $400 'due in 4 months. At what time might the whole indebtedness be equitably discharged by a cash payment?

in 2 mo., the use of

2200 mo.÷1100-2 mo. Average term of credit. that sum for 2 mo. is equal to the use

of $1 for 600 mo., and the use of $400 for 4 mo. is equal to the use of $1 for 1600 months. Hence, the credit of the whole debt, $1100, is equal to the credit of $1 for 2200 mo., or $1100 for 11 part of 2200 mo., which is 2 months, the average term of credit.

RULE.-Multiply each debt by its term of credit, and divide the sum of the products by the sum of the debts. The quotient will be the average term of credit.

2. H. B. Claflin & Co. sold a bill of goods amounting to $2300, on the following terms: $300 cash, $1200 due in 3 months, and the balance due in 4 months. What was the average term of credit.

3. Field, Leiter & Co. sold a bill of goods payable as follows: $500 in 1 month, $500 in 2 months, and $800 in 4 months. What was the average term of credit?

4. Whitney & Co. sold a bill of lumber on the following terms: $1500 cash, $3000 payable in 30 days, and $2000 payable in 90 days. At what time will the debt be payable in one cash payment?

5. H. K. Thurber & Co. sold to F. N. Burt a bill of goods amounting to $2400, payable as follows: in 30 days, the remainder in 60 days, and the balance in 4 months. What was the average term of credit?

6. Mr. Birge bought a bill of goods amounting to $3000, payable as follows: in 3 mo., in 2 mo., and the rest in 4 mo. What was the average term of credit?

CASE II.

464. When the terms of credit begin at different

dates.

1. Find the average time of payment of the following bills: Feb. 10, 1877, $400 due in 2 mo.; March 15, 1877, $350 due in 3 mo.; and April 12, 1877, $300 due in 3 mo.

April 1049 days = May 29, average term.

tain the time when it is due,

and so we have

$400 due April

10, $350 due June 15, $300 due July 12. The average time when the bills will he due will be either after the earliest date, or before the latest date, and so we may select either of these dates from which to compute the average time. Selecting the earliest date, we find that $350 was due 66 days after that time, and $300 was due 93 days thereafter. Averaging, as in Case I, we find the term of credit to be 481, or a fraction more than 48 days, which must be 49 days. This, added to April 10, gives May 29, the average time of payment.

RULE.-Select the earliest date at which any debt becomes due for the standard date, and find how long after that date the other amounts become due.

Find the average term of credit by multiplying each debt by the number of days from the standard date, and dividing the sum of the products by the sum of the debts.

Add the average term of credit to the standard date, and the result will be the average term of payment.

Instead of the earliest date, the first of the month may be used.

2. What is the average time at which the following bills become due: Feb. 1, 1877, $200 on 1 mo. credit; March 10, 1877, $500 on 3 mo. credit; April 12, 1877, $275 on 2 mo. credit; and May 1, 1877, $400 on 4 mo. credit?

3. A merchant owes bills dated as follows: Jan. 1, 1877, $500 due in 2 mo.; Jan. 15, 1877, $850 due in 3 mo.; Feb. 20, 1877, $375 due in 3 mo.; and, Feb. 28, 1877, $650 due in 4 mo. What will be the average time of pay

ment?

4. A merchant purchased goods of Cragin Bros. & Co. as follows: Sept. 10, 1876, $300 on 4 mo. credit; Oct. 15, 1876, $400 on 6 mo. credit; Nov. 1, 1876, $750 on 2 mo. credit; and, Nov. 15, 1876, $300 on 1 mo. credit. What was the average time of payment?

5. Messrs. J. Rorbach & Son bought goods from George C. Buell & Co. as follows: Sept. 1, 1876, $600 on 3 mo. credit; Oct. 3, 1876, $400 on 4 mo. credit; Oct. 20, 1876, $250 on 2 mo. credit; and, Nov. 10, 1876, $375 on 1 mo. credit. What was the average time of payment?

6. Stevens & Shepard bought goods from the Russell Irwin Manufacturing Co. as follows: Dec. 10, 1876, a bill of $460 on 4 mo. credit; Jan. 5, 1877, a bill of $200 on 3 mo. credit; Jan. 30, 1877, a bill of $200 on 4 mo. credit; and, Feb. 25, a bill of $900 on 2 mo. credit. What was the average time of payment?

7. Bought goods of Carson, Pirie & Co. as follows: Jan. 25, 1877, $850 on 4 mo: credit; Feb. 15, 1877, $600 on 3 mo. credit; March 20, 1877, $500 on 4 mo. credit; and, What was the averApril 10, 1877, $960 on 2 mo. credit.

age time of payment?

8. May 1, 1877, Mr. S. purchased goods to the amount of $2400 on the following terms: payable in cash, payable in 2 months, and the balance in 6 months. When may the whole be equitably paid by one payment?