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8. What is the amount of £329 7 s. 1 d. 3 qr. from Nov. 13, 1850, to Dec. 1, 1852, at 3 per cent?

9. What is the interest of £481 13 s. 5d. 1 qr. from April 19, 1842, to May 3, 1847, at 5 per cent?

10. What is the amount of £222 2 s. 2 d. 2 qr. from Feb. 29, 1848, to Jan. 1, 1852, at 4 per cent?

189. Partial Payments.

(a.) The principle adopted by the Supreme Court of the United States, and by that of Massachusetts and most of the other states, as the one to be applied in determining the sum due on a promissory note or bond on which payments have been made at different times, is, that as much of the payment as is necessary to pay the interest due at the time the payment is made should be appropriated to that purpose, and the surplus to the payment of the principal. The balance then due will form a new principal on interest as was the original principal. If, however, any payment is less than the interest at the time due, the principal remains unaltered, and on interest, till some payment is made, which, with the preceding neglected payments, is more than sufficient to pay the interest; when we proceed as if a single payment, equal to the sum of the last payment and the preceding neglected ones had been made.*

EXAMPLE.

$750.00

Boston, April 7, 1848.

For value received, I promise to pay James Sullivan, or order, seven hundred and fifty dollars, on demand, with inEdward Delano.

terest.

The method adopted by the court of Connecticut differs from the above only in this respect that if a payment greater than the interest at the time due be made before the principal has been on interest one year, the person making it is allowed interest on it to the end of the year; that is, its amount from the time it was made to the end of the year, is deducted from the amount of the principal to the same time. If settlement be made before the principal has been on interest one year, interest is allowed on the payments from the time thev were made to the time of settlement.

On this note are the following indorsements:

Jan. 17, 1849. Received one hundred dollars.

March 13, 1850.

Feb. 19, 1851.

Aug. 3, 1851.

Received twenty-five dollars.
Received thirty dollars.
Received two hundred dollars.

Jan. 1, 1852. Received one hundred and fifty dollars.

What was due on the note at the time of settlement, Aug. 14, 1852 ?

(b.) The following exhibits a good form of writing the work in such examples, and, in connection with the explanations following, will be a sufficient illustration of the process:·

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Explanation. As it is obvious that the first payment was greater than the interest at the time due, we get the amount of the note to that time, and deduct from it the payment. The remainder is a new princi

pal The second payment, $25, is evidently less than the interest then due; for the time is over one year, while the principal, between $600 and $700, gives more than $36 interest per year. Similar considerations will at once show that the interest to the time of the third payment must be greater than the second and third payments together. But the fourth payment, together with the second and third, is very evidently more than sufficient to pay the interest then due; therefore we get the amount of the new principal to the time of the fourth payment, and subtract from it the sum of the second, third, and fourth payments, thus getting our third principal. As it is evident that the interest of this principal to the time of the fifth payment is less than that payment, we find its amount, and from it subtract the payment. This gives us the fourth principal, which is on interest till the time of settlement; and hence its amount is the sum due.

(c.) The above is really equal to the following simple problems, each of which is very easy of solution : —

Is the interest of $750 from April 7, 1848, to Jan. 17, 1849, more or less than $100, the first payment? What, then, is the amount of $750 for that time? How much will be due after paying the $100? Is the interest of this to March 13, 1850, more or less than the $25 at that time paid? Is the interest to Feb. 19, 1851, greater or less than $25+ $30, or $55, the sum of the second and third payments? Is the interest from Jan. 17, 1849, to Aug. 3, 1851, greater or less than $255, the sum of the second, third, and fourth payments? What, then, is the amount of $685 from Jan. 17, 1849, to Aug. 3, 1851? How much will be due after deducting the $255? Is the interest of this from Aug. 3, 1851, to Jan. 1, 1852, greater or less than $150 ? What, then, is the amount of $534.69 for that time? How much will be due after deducting $150, the fifth payment? What is the amount of this from Jan. 1, 1852, to Aug. 14, 1852? What, then, was due Aug. 14, 1852 ?

Every problem in partial payments can be resolved into simple ones; and if the pupil will use a little care in determining what these are, and be sure that he performs each correctly, he may obtain a true result the first time of performing the work. Nothing short of this should satisfy him.

2. $850.00

Boston, April 7, 1847.

For value received, I promise to pay Albert Simmons, or order, eight hundred and fifty dollars, on demand, with interest. Isaac Goodrich.

--

On this note were the following indorsements :
J ne 19, 1848. Received one hundred and twenty-five dollars

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How much was due on the note Oct. 13, 1851 ?

3.

$1000.00

Providence, Nov. 28, 1848.

I promise to pay Bradford Allen, or order, one thousand dollars, on demand, with interest. Value received.

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April 2, 1851.

Dec. 20, 1851.

May 17, 1852.

Received twenty-five dollars.
Received five hundred dollars.
Received three hundred dollars.

How much was due Aug. 14, 1852?

4.

$645,7%

Worcester, Dec. 20, 1846.

For value received, we promise to pay Alfred Lincoln, or order, six hundred and forty-five dollars and seventy-five cents, in three months, with interest after.

Indorsements:

Thompson & French.

Nov. 8, 1848.

April 16, 1849.

March 10, 1851.

Received forty dollars.

Received three hundred dollars.

Received two hundred and fifty dollars.

Sept. 8, 1851. Received sixty dollars.

How much was due Jan. 1, 1852 ?

5.

$1275.00

Bridgewater, Sept. 29, 1845.

For value received, we promise to pay Lincoln and Wood twelve hundred and seventy-five dollars, on demand, with inPaine, Root, & Co.

terest.

Indorsements:

Aug. 5, 1846.

Sept. 22, 1847.

May 25, 1848.

June 17, 1849.

Nov. 13, 1850.

Received three hundred dollars.
Received four hundred dollars.
Received two hundred dollars.

Received one hundred and fifty dollars.

Received one hundred and fifty dollars.

What was the balance due March 1, 1851 ?

6.

$3000.00

Lowell, April 3, 1849.

For value received, I promise to pay the order of James Wyman three thousand dollars, on demand, with interest after four months.

Attest, George Stone.

Edward Robinson.

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The note was settled Nov. 8, 1852. How much was due ?

190. Merchants' Method when Debts are paid within a Year.

(a.) When notes or debts of any kind, on which partial payments have been made, are paid in full within one year from the time interest commences, merchants often determine the sum to be paid on settlement, as they would if nothing is due on a note till it is paid in full; that is, they find the amount of the note to the time of settlement, and the amount of each payment from the time it was made till the time of settlement, and then consider the excess of the amount of the note over the sum of the amounts of the several payments to be the sum due on settlement.

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