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VERMONT RULE FOR PARTIAL PAYMENTS.

956. The General Statutes of Vermont provide the following RULE for computing interest on notes, when partial payments have been made:

"On all notes, bills, or other similar obligations, whether made payable on demand or at a specified time, WITH INTEREST, when payments are made, such payments shall be applied: first, to liquidate the interest that has accrued at the time of such payments; and, secondly, to the extinguishment of the principal.

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On all notes, bills, or other similar obligations, whether made payable on demand or at a specified time, WITH INTEREST ANNUALLY, the annual interests that remain unpaid shall be subject to simple interest, from the time they become due to the time of final settlement; but if in any year, reckoning from the time such annual interest began to accrue, payments have been made, the amount of such payments at the end of such year, with interest thereon from the date of payment, shall be applied: first, to liquidate the simple interest that has accrued upon the unpaid annual interests; secondly, to liquidate the annual interests that have become due; and thirdly, to the extinguishment of the principal."

$3458.

EXERCISES.

BRADFORD, VT., Sept. 13, 1869. 1. For value received, I promise to pay E. W. Colby or order three thousand four hundred and fifty-eight dollars, on or before the first day of January, 1878, with interest. SAMUEL S. GREEN.

Indorsed as follows: Dec. 16, 1870, $100; May 1, 1871, $1000; Jan. 13, 1874, $85; April 13, 1876, $450.75. What was due Jan. 1, 1878 ?

$872.

Ans. $3239.90.

ST. JOHNSBURY, VT., Nov. 22, 1868.

2. For value received, I promise to pay James Ferguson or order eight hundred and seventy two dollars, on demand, with interest annually. SYLVANUS E. BOYLE.

Indorsed as follows: April 4, 1869, $28; July 10, 1872, $94.40; Dec. 10, 1874, $6.72; Jan. 14, 1877, $396.

What was due Dec. 28, 1878?

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Int. on 1 year's int 1 year

3.14

Int. on bal. of unpaid yearly int. 2 years 30.52

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Am't of 4th payment

416.33

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EXPLANATION.-We compute the interest for one year from the date of the note, as a payment is made within that year, and deduct the amount of the payment at the end of the year from the interest due. The balance of interest bears interest till Nov. 22, 1872. The amount of the payment at the end of this year exceeds the interest on interest due. We therefore deduct the amount of the payment from the total interest due, and have a balance of unpaid yearly interest, $97.35, which bears simple interest till Nov. 22, 1875. At this date the amount of the payment is less than the interest on interest due. We therefore deduct the amount of the payment from the amount of interest on interest, and have a remainder of $19.84, which is without interest. The amount of unpaid yearly interest at this date bears simple interest till the next balance.

The amount of the fourth payment, Nov. 22, 1877, exceeds the total interest due. We therefore deduct it from the sum of the interest and principal. The remainder forms a new principal, which bears simple interest to the settlement of the note, Dec. 28, 1878, and one year's interest on the same bears interest from Nov. 22, 1878, to Dec. 28, 1878, which interest, added to the new principal, gives the amount due Dec. 28, 1878-$925.73.

In cases of annual interest with partial payments, like the above example, observe the following notes:

1. To avoid compounding interest, keep the principal, unpaid yearly interests, and interest on yearly interest, in separate columns.

2. Deduct the amount of the payment or payments at the end of the year from the interest on the unpaid yearly interest, when it does not exceed this interest. The remainder never draws interest, but is liquidated by the first payment that equals or exceeds it.

3. Deduct the amount of the payment or payments at the end of the year from the sum of the unpaid yearly interests and the interest on the unpaid yearly interests, when this amount exceeds the interest on the interest, but is less than such sum. The remainder is a balance of unpaid yearly interest which draws simple interest until canceled by a payment.

4. Deduct the amount of the payment or payments at the end of the year from the sum of the total interest due and the principal, when it exceeds the total interest due. The remainder forms a new principal, with which proceed as with the original principal.

$5000.

NEWPORT, VT., Oct. 19, 1862.

3. For value received, we jointly and severally promise to pay John Smith or bearer five thousand dollars, sixteen years after date, with interest annually.

Indorsed as follows: Jan. 13, 1866, $393;

GEO. S. LEAZER.

E. D. CRAWFORD.

Sept. 24, 1866, $48;

July 10, 1869, $493.47; Oct. 14, 1873, $100; Dec. 12, 1877, $3200;

April 15, 1878, $65.

What was due Oct. 19, 1878? Ans. $7056.17.

$420.

BURLINGTON, VT., March 23, 1872.

4. For value received, I promise to pay Jas. B. Vinton or order four hundred and twenty dollars, six years from date, with interest annually. GEO. A. BANCROFT.

Indorsed as follows; Oct. 3, 1873, $40.23; March 1, 1874, $8; Sept. 13, 1875, $33.38.

What was due March 23, 1878? Ans. $494.62.

$639.

BARTON, VT. Aug. 20, 1872.

5. For value received, I promise to pay E. J. Baxter or order six hundred and thirty-nine dollars, on demand, with interest annually. SAMUEL MACOMBER.

Indorsed as follows: Oct. 14, 1877, $10; Dec. 24, 1878, $20.
What was due March 30, 1879? Ans. $904.58.

TABLE.

Showing amount of $1.00 from 1 to 20 years, at 4, 5, 6, 7 and 8 per cent., Annual Interest.

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VERMONT METHOD OF ASSESSING TAXES.

957. The Grand List is the base on which all taxes are assessed; it is 1% of the appraised value of the real estate and personal property, together with the poll list.

The Poll List is $2.00 for every male inhabitant, from 21 to 70 years of age, except such as are specially exempt by law.

The General Statutes of Vermont provide that the listers in each town shall make a list of all the real estate and personal property, and the number of taxable polls in such town, and that the said list shall contain the following particulars :

"First. The name of each taxable person.

"Second. The number of polls and the amount at which the same are set in the list.

Third. The quantity of real estate owned or occupied by such person.

66 Fourth. The value of such real estate.

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'Fifth. In the fifth column the full value of all taxable personal estate owned by such person.

66 Sixth. In the sixth column shall be set the one per centum on the value of all personal and real estate, together with the amount of the polls, which sum shall be the amount on which all taxes shall be made or assessed.

The State and County Taxes are assessed by the Legislature.

The minimum of the State School and Highway Taxes is fixed by law, and a higher rate left optional with the town.

A Town Tax is assessed by vote of the town, a Village Tax by vote of the village, and a School District Tax by vote of the district.

EXERCISES.

1. The town of Montpelier voted a town tax of $2.60 on each dollar of the grand list. The appraised value of the real estate was $702727, and of the personal property $309987, and there were 740 taxable polls. What was the grand list of the town? How much money was raised by this vote? What was John Hammond's town tax, who was 30 years of age, and whose property was appraised at $8927.75?

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