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15, or .04; per cent means Tʊ, or of Tʊ, or gʊ; &c. This term may be applied to any thing else as well as money; and hence the definition (often given in the school room) "so many cents on 100 cents" is not a good one, any more than would be, so many bushels or 100 bushels, or so many yards on 100 yards. It is the more objectionable because scholars are sometimes led by it, and by being often called upon to use the term per cent in connection with money, to suppose that it has some necessary connection with cents, or with United States money

168. Legal Rate.

(a.) In most countries, laws have been passed regulating in some way or other the rates of interest.

(b.) Such laws are called USURy Laws.

(c.) They commonly embrace the following particulars :First. They fix the rate which shall be paid when no special rate has been agreed upon by the parties. This is called the LEGAL RATE.

Second. They forbid persons to receive interest at more than some given rate.

Third. They impose penalties for their violation.*

(d.) Any excess over the rates allowed by these laws is called USURY.

(e.) In most states of the Union, the legal rate is also the highest rate allowed by law, even on special contracts. The exceptions to this are named in the following statement of the legal rates of interest in the several states.

(f) In New York, South Carolina, Georgia, Michigan, and Wisconsin, the legal rate of interest is 7 per cent per year.

It may not be amiss to remark that the laws regulating the rate of interest are very often disregarded, while the penalties for their violation are seldom imposed. Very few men continue long in business without paying or receiving interest at more than the legal rate. Money, having, like every thing else, a variable value, will bring what it is worth at the time it is sold or let, and it seems as impossible to regulate by law the price which shall be paid for its use, as to fix by law that which shall be paid for the use of any other article of property.

(9.)

In Alabama and Texas, it is 8 per cent per year. (h.) In Louisiana, it is 5 per cent.

(i.) In California, it is 10 per cent.

(k.) In all the other states, the legal rate is 6 per cent

per year.

(1) By special agreement of the parties, interest may be charged at the rate of 8 per cent per annum in Florida, Mississippi, and Louisiana; at the rate of 10 per cent in Arkansas, Illinois, Michigan, Iowa, and Ohio; at the rate of 12 per cent in Wisconsin and Texas; and at the rate of 18 per cent in California.

(m.) On debts in favor of the United States, interest is computed at the rate of 6 per cent.

(n.) In each state, interest is reckoned at the legal rate of that state, unless otherwise specified.

(0.) In the United States, it is customary, when reckoning interest, to regard a year as 12 months, and a month as 30 days. But in England, the year is regarded as 365 days, and the number of days in the months considered are reckoned as in the calendar.

(p.) In England, the legal rate is 5 per cent. K

169. Interest for 2 Months, 200 Months, &c., at 6 per

cent.

(a.) If the interest of any sum for one year is 6 per cent of that sum, for of 1 year, or 2 months, it must be of 6 per cent, or 1 per cent of it.

(b.) Therefore, at 6 per cent per year, the interest for 2 months is 1 per cent, or .01 of the principal, and may be found by removing the decimal point of the written principal two places towards the left.

Thus, the interest of $75 for 2 months is $.75; of $364.30 is $3.643, &c., &c.

What is the interest of each of the following sums for 2 months?

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7. What is the amount of each of the above sums for 2 months?

(c.) If the interest of any sum for 2 months is .01 of that sum, its interest for .1 of 2 months, which is 6 days, must be .1 of .01, or .001 of it.

(d.) Therefore, at 6 per cent per year, the interest for 6 days is .001 of the principal, and may be found by removing the decimal point three places to the left.

Thus, the interest of $987 for 6 days is $.987; of $439 is $.439; of $8763.72 is $8.764;† or, carrying the values no farther than cents, the interest of $987 is $.99; of $439 is $.44; of $8763.72 is $8.76; &c.

What is the interest of each of the following sums for 6 days?

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14. What is the amount of each of the above sums for 6

days?

(e.) If the interest of any sum for 2 months is 1 per cent of that sum, its interest for 100 times 2 months, or 200 months, must equal 100 times 1 per cent, or 100 per cent of it, which is the sum itself.

(f.) Therefore, at 6 per cent per year, the interest for 200 months, or 16 years 8 months, must equal the principal.

Thus, the interest of $47 for 200 months is $47; of $37.84 is $37.84; of $23 is $23; &c.

What is the interest of each of the following sums for 16 8 mo., or 200 mo. ?

yr.

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*The denominations below mills need not be given in the answer. In deed, those below cents need not be given, if, when there are more than 5 mills, 1 be added to the number of cents.

+ Since $.00072 : more than of a mill.

21. What is the amount of each of the above sums for 200 months?

(g.) If the interest of any sum for 200 months is equal to that sum, its interest for of 200 months, or 20 months, must equal of it.

(h.) Therefore, at 6 per cent per year, the interest for 20 months, or 1 year and 8 months, is of the principal, and may be found by removing the decimal point one place to the left.

Thus, the interest of $63 for 20 months, or 1 yr. 8 mo., is $6.30; of $78.60 is $7.86; of $8.79 is $.879, or, carrying the result only to cents, $.88

What is the interest of each of the following sums for 20 months, or 1 yr. 8 mo. ?

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28. What is the amount of each of the above sums for 20 months?

170. Recapitulation and Inferences.

(a.) The importance of the above deductions is such as to demand that they should be made perfectly familiar by all who would become expert in casting interest at 6 per cent. We therefore repeat them.

When interest is 6 per cent per year,

1

First. The interest of any sum for 200 months, or 16 yr. mo., will equal that sum.

8

Second. The interest of any sum for 20 months, or 1 yr. 8 mo., will equal of that sum, or as many dimes as there are dollars in the principal.

Third. The interest of any sum for 2 months will equal .01 of that sum, or as many cents as there are dollars in the principal.

Fourth. The interest of any sum for 6 days will equal .001 of that sum, or as many mills as there are dollars in the principal.

(b.) It is therefore evident that for of 200 months, the interest will equal of the principal; for of 200 months,

of the principal; &c.

(c.) For

of 20 months, the interest will equal

of,

or of the principal; for of 20 mo., of, or of the principal; for 3 times 20 mo., 3 times .1, or .3 of the principal; &c.

of .01, or or

of

(d.) For of 2 months, the interest will equal 3 of the principal; for of 2 months, of .01, the principal; for 7 times 2 months, 7 times .01, or .07 of the principal; &c.

(e.) For of 6 days, the interest will be of .001, or zooo of the principal; for 3 times 6 days, 3 times .001, or .003 of the principal; &c.

171. Table showing Interest for convenient Fractional Parts of 200 months, 20 months, &c.

At 6 per cent per year, the interest for

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mo., or 3 yr. 4 mo., =
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of 20 mo., or 10 mo., =

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