Εικόνες σελίδας
PDF
Ηλεκτρ. έκδοση
[blocks in formation]

b+c+d= $33.591 = int. for 1 yr. 10 mo. 15 da.

NOTE. It will be seen that, by this method, we first get the interest for any convenient time, and then take such part or parts of this as will give the interest for the required time.

4. What is the interest of $279.64 for 6 yr. 5 mo. 22 da. at per cent?

Solution.

The interest for 4 years at per cent must be 4 times 1,

ɔr 1 per cent of the principal. Hence,

[blocks in formation]

5. $483.79 for 3 yr. 3 mo. 18 da. at 41 per cent?

6. $538.71 for 1 yr. 7 mo. 24 da. at 9

per cent?

7. $875.37 for 2 yr. 7 mo. 13 da. at 8 per cent?
8. $63.29 for 5 yr. 11 mo. 10 da. at 83 per cent?

=

=

Suggestion. The interest for 6 years, at 8 per cent, is 50 per cent, or of the principal, and since 20 days of 2 months Tg of 1 year Tog of 6 years, the interest for 20 days must equal Tog of the interest for 6 years.

=

9. What is the interest of $56.84 from March 5, 1850, to May 25, 1851, at 5

* Since 5 mo.

+ Since 12 da. =

per

cent?

of 4 yr., or 48 mo.

of 2 mo., and 2 mo. = 2 of 2 yr., 12 da. must

equal of 12, or ʊ of 2 yr.

10. What is the interest of $138.46 from July 1, 1848, to Aug. 26, 1852, at 21 per cent?

11. What is the interest of $273.81 from Sept. 28, 1847, to Oct. 31, 1852, at 7 per cent ?

12. What is the amount of $783.25 from Aug. 28, 1846, to Feb. 29, 1852, at 41 per cent?

13. What is the amount of $57.84 from Jan. 19, 1849, to Dec. 29, 1852, at 6 per cent?

14. What is the amount of $278.49, from Sept. 13, 1841, to Oct. 10, 1846, at 7 per cent?

15. Jan. 17, 1850, I borrowed 837 dollars, agreeing to pay interest at the rate of 6 per cent per year, and immediately put it on interest at the rate of 7 per cent. Aug. 27, 1852, I collected the amount due to me, and paid that which I owed. How much did I gain by the transaction?

Suggestion.

Since I paid 6 per cent and received 7 per cent interest on the sum I borrowed, my gain must have been 1 per cent per year.

16. A merchant, wishing to purchase 9 acres of land at $378.43 per acre, borrowed money for the purpose at the rate of 5 per cent. At the end of 3 yr. 9 mo. 15 da. he sold the land, receiving $400 per acre for of it, and $475.28 for the remainder. Did he gain or lose, and how much?

17. Bought 397 yards of cloth at $3.75 per yard, payable in 6 months, with interest at 7 per cent per year, and immediately sold it for $4 per yard, payable in 6 months, without interest. When the 6 months had elapsed, I collected the money due me, and paid my debt. Did I gain or lose, and how much?

18. Bought 397 yards of cloth at $4 per yard, payable in 6 months, and immediately sold it at $3.75, cash, and put the money on interest at the rate of 7 per cent. At the end of 6 months I called in the money I had lent, and paid that which I owed. Did I gain or lose by the transaction, and how much?

182. Promissory Notes.

(a.) A PROMISSORY NOTE, a NOTE OF HAND, or, as it is more commonly called, A NOTE, is a written promise to pay a specified sum of money.

(b.) Annexed is a form of a note, which, with the subsequent explanations, will illustrate the principal points connected with this subject.

$100.

Providence, Elbay 1, 1855.

For value received, I promise to pay George Smith, or order, one hundred dollars, on demand, with in

terest.

John Brown.

(c.) The above note is a promise made by John Brown to pay George Smith, or order, one hundred dollars, and is equivalent to the following:

Providence, May 1, 1855.

Because of an equivalent value received from George Smith, I promise to pay to him, or to whomsoever he may order me to pay it, one hundred dollars, whenever the payment may be demanded of me by presenting this note; and also to pay the interest of one hundred dollars from this date till the time of payment.

John Brown.

These fig

(d.) In considering this note, we may observe, — First. The "$100" placed at the left hand upper corner. nres do not form an essential part of the note, but are written in order to enable a person to tell at a glance the amount for which it was given, and also to guard against any changes which might be made in the body of the note.

Second. The date, which shows when and where it was written.

Third. The words "value received," which are designed as an acknowledgment that the signer of the note has received an equivalent from the person to whom it is to be paid.

Fourth. "I promise to pay George Smith, or order," which means the same as, "I promise to pay to George Smith, or to whomsoever he may order me to pay it."

Fifth. The sum,

written out in words.

[ocr errors]

one hundred dollars." This should always be

Sixth. The phrase "on demand," which means whenever he shall demand payment.

Seventh. The phrase "with interest," which means that interest is to be paid from the time the note is dated.

Eighth. The signature, “John Brown," which gives validity to the note, and must be written by Mr. Brown himself, or by some one specially authorized by him.

(e.) The words "value received" are regarded as essential to a note, it being a principle in law, that no person shall be compelled to pay money for which he has not received an equivalent in some form or other.

(f) The words "or order" may be omitted, or the words " or bearer" may be substituted for them. If they are omitted, the note can only be collected by the person named in it. Such a note is not negotiable. (See 183, a.)

(g.) Some specified time, as "in sixty days," "in three months," &c., might be substituted for the phrase "on demand." The meaning then would be in so many days or months from the date of the note. Such a note would be called A NOTE ON TIME.

(h.) Notes on time are not regarded as due till three days after the time specified in the note. Thus, a note payable in sixty days is not due till the end of sixty-three days. The three days thus added are called DAYS OF GRACE.

(i.) If grace is not to be allowed, the form of the note should be, "in so many days or months without grace."

(j.) If the last day of grace comes on Sunday, or upon a legal holiday, as the Fourth of July, Thanksgiving, &c., the note is payable on the preceding day, and if that be Sunday, or a legal holiday, it is payable on the first day of grace.

(k.) If the phrase "with interest" should be omitted, the note would not be on interest. If, however, a note on demand is not paid when the demand is made, or if a note on time is not paid when due, interest may be afterwards charged, though no mention of it is made in the note; so that two notes, one payable in three months, and the other payable in three months, with interest afterwards, would both be on interest after the expiration of three months.

(1.) The form of notes may be varied somewhat without affecting their meaning or value. Thus, it makes no difference where the phrases "value received" and "on demand" are placed, provided they are above the signature. The phrase "to the order of George Smith" may be substituted for "George Smith or order." These and other changes will be illustrated in the forms of notes given in subsequent parts of the book.

(m.) The person whose name appears on a note as promisor is called the MAKER of the note.

(n.) The person to whom a note is to be paid is called the PAYEE or the PROMISEE, or the HOLDER of the note.

(o.) Every note should be written, or at least signed, by the maker of it, or by some one specially authorized by him. It is then taken by the payee, and is his property until it is paid, or until he transfers it to another. When paid, it should be given up to the signer, who should immediately tear off or erase his signature.

(p.) If the maker of a note refuses or neglects to pay it, when the demand is legally made, at the proper place and time, the note is said to be DISHONOred.

(q.) A demand for payment, to be legal, must be made by actually presenting the note; or, if it is payable at a certain place on a given day. by having the note deposited at that place ready to be presented to the maker, should he call to pay it.

NOTE. The maker of a note is not obliged to regard a request for its payment as a legal demand, unless the note be exhibited and tendered to him at the time the request is made; but if he waives his right to see the note, the demand is legal.

183. Negotiable Notes, Indorsements, and Protests.

(a.) A NEGOTIABLE NOTE is one that may be transferred or sold by one person to another.

(b.) Negotiable notes are of two kinds, viz., those payable to a person, or order, (as " George Smith, or order,”) and those payable to a person, or bearer, (as " George Smith, or bearer,") or simply to "the bearer."

(c.) Those of the second kind are negotiable by mere delivery; but those of the first require a written order of the payee to authorize any one else to collect the money due on them.

(d) Such an order is commonly written on the back of the note. and is called an indorsement.

Thus, if George Smith wishes to transfer the above note to Charles Woods, he might write on the back of it, "Pay to Charles Woods, or order. George Smith."

(e.) This would be an indorsement in full, and would give Charles Woods the same title to the note, and the same claim on John Brows on account of it that George Smith originally had.

[ocr errors]

(f) If the indorsement had been, Pay to Charles Woods, or

« ΠροηγούμενηΣυνέχεια »