Εικόνες σελίδας
PDF
Ηλεκτρ. έκδοση

INTEREST.

351.

INTEREST is an allowance made for the use of money, or for value received ; and it is generally reckoned as a certain rate per cent. for any given time, but usually for one year.

The principal is the sum lent, on which interest is computed. The amount is the interest and principal added together.

Simple interest is that reckoned on the principal only; and is that meant when the term interest is used alone.

Legal interest is the rate per cent. established by law.
Usury is a higher rate per cent. than is allowed by law.

The legal rate per cent. varies in the different States and in different countries.

In Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, Tennessee, Kentucky, Ohio, Indiana, Illinois, Iowa, Nebraska, Missouri, Kansas, Arkansas, Mississippi, Florida, District of Columbia, and on debts or judgments in favor of the United States, it is 6 per cent.

In New York, Michigan, Wisconsin, Minnesota, Georgia, and South Carolina, it is 7

In Alabama and Texas, it is 8 per cent. In California, it is 10 per cent. In Louisiana, it is 5 per cent. In Canada, Nova Scotia, and Ireland, it is 6 In England and France, it is 5 per cent. . NOTE. — The legal rate, as above, in some of the States, is only that which the law allows, when no particular rate is mentioned. By special agreement between parties, in Ohio, Indiana, Michigan, Illinois, Iowa, Nebraska, Missouri, Kansas, Arkansas, Louisiana, and Mississippi, interest can be taken as high as 10 per cent.; in Florida, as high as 8 per cent.; in Texas and Wisconsin, as high as 12 per cent.; and in California and Minnesota, any per cent. In New Jersey, by a special law, 7 per cent. may be taken in the city of Paterson, and in the counties of Essex and Hudson. In Vermont 7 per cent. may be taken on railroad bonds. Banks in Illinois cannot take above 7 per cent., and in Ohio, not above 6 per cent. In Mississippi, above 6 per cent. oan be taken only for money lent.

352. When the rate of interest is 6 per cent. per annum, the interest for 1 year or 12 months will be 6 cents on every

per cent.

per cent.

100 cents on which it is reckoned, or go of the principal Hence, for 2 months or of a year, it will be 1 cent on every 100 cents, or too of the principal ; and for 1 month or ļ of 2 months it will be 5 mills, or ado of the principal. Now, since the interest on 100 cents for 1 month, or 30 days, is 5 mills, for 6 days, or of 30 days, it will be 1 mill, or todo of the principal; and since the interest on 100 cents for 2 months is 1 cent, or ido of the principal, for 100 times 2 months, or 200 months, or 16 years 8 months, it will be 100 cents, or equal the whole principal; and in the same ratio for any other length of time.

The interest of $ 1, at 6 per cent., and the ratio of the interest to the principal, for 200 months, and other convenient parts of time, is shown in the following

TABLE.

66

[ocr errors]

66

66

4yr. 2mo.

66

[ocr errors]

66

[ocr errors]

66

66

1yr. 8mo.

[ocr errors]
[ocr errors]
[ocr errors]

64

[ocr errors]

Interest of $ 1 For 200 mo. =

16yr. 8mo. is $ 1.00 equal the whole principal. 100 mo. = 8yr. 4mo. 0.50

of the principal
66fmo. = 5yr. 6{mo. . 0.333} }
50 mo. =

0.25
40 mo.
3yr. 4mo.

0 20
33fmo.

2yr. 9{mo. 0.1663 25 mo.

2yr. Imo. 0.125
20 mo.

0.10
16mo. 1yr. 4 mo. 0.083
12 mo.
lyr, Omo.

0.06
10 mo.

of a yr. 0.05 8 mo. =

0.04

25 6 mo.

0.033} 30
6 mo. =

0.03
5 mo. = of a yr. 0.025
4 mo.

0.02

30 2 mo.

0.01 1 mo. = iz of a yr.

0.005 6 d. } of a mo.

0.001

1000
5 d.
de of a mo.

0.0004 000
4 d.

of a mo.

0.000; 3 d. To of a mo.“ 0.0001

6000 2 d. is of a mo. 0.0001 ਹਨ 1 d.

3 of a mo. 0.0001 6000

[ocr errors]

66

[blocks in formation]
[merged small][merged small][merged small][merged small][merged small][merged small][ocr errors]
[merged small][ocr errors][ocr errors][ocr errors][merged small][merged small][merged small][merged small][ocr errors][ocr errors][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][ocr errors]

FIRST OPERATION.

[ocr errors]

353. The principal, the rate per cent., the time, and the interest have such a relation to each other that, any three of these terms being given, the fourth can be readily found. The computations in interest, therefore, admit of the following problems among

others :— I. To find the interest ; II. To find the principal ; III. To find the rate per cent. ; IV. To find the time.

354. To find the interest of any sum for any time at 6 per cent.

Ex. 1. What is the interest of $ 2640 for 2 years 7 months and 26 days, at 6 per cent. ?

Ans. $ 420.64.

The interest of Interest of $ 1 for 2 years

= $0.1 2

$ 2640 for 2yr. Interest of $ 1 for 7 months 0.0 3 5 7mo. 26d. will Interest of $ 1 for 26 days

0.0 0 4 1 be 2640 times as

much as the inInt. of $ 1 for 2yr. 7mo. 26d. $0.1 595 terest of $ 1 for

the given time. Principal, $ 2 6 40

The interest of $1 for 2 years

will be twice as 2 3 7 60

much for 1 13200)

year, equal 12cts.; 2 640

and since the in

terest for 2 months 880

is 1 cent, for 7 Interest, $ 4 2 0.6 40 Ans. months it will be

32 cents, or 3 cents 5 mills. And as the interest for 6 days is 1 mill, for 26 days it will be 44 mills. These several sums added together give the interest of $ 1 at 6 per cent. for the given time, equal $ 0.159}, which taken 2640 times, by multiplying the given principal by it, gives $ 420.64, the interest required.

.15 9 }

as

SECOND OPERATION

Principal,

$ 2 6 40 of the prin. 3 30 Interest for 2yr. Imo. 30 of the prin.

88 Interest for 6mo. 20d. Toto of the prin. = 2.6 4 Interest for 6d.

Ans. $ 4 2 0.6 4 Interest for 2yr. 7mo. 26d. The time, 2yr. 7mo 26d., is equal to 2yr. lmo + 6mo. 20d. + 6d. Now, since the interest on any sum, at 6 per cent., in 200 months equals the principal, for 2yr. imo., or 5 of 200 months, it will equal } of the principal. We therefore take ţ of the principal, $ 2640, equal $ 330, as the interest for 2yr. Imo. Of the balance of

Or,

time, 6mo. 20d., or 6įmo., being ab of 200 months, we take zbo of the principal, equal $ 88, as the interest for the 6mo. 20d.; and the 6d. being into of 200 months, we take tooo of the principal, equal $ 2.64, as the interest for the 6d. We add together the interest for the parts of the whole time, and obtain, as by the first operation, $ 420.64 as the whole interest.

Rule I. Find the interest of $1 for the given time, by reckoning 6 cents for every YEAR, 1 cent for every TWO Months, and 1 mill for every 6 DAYS; then multiply the given principal by the number denoting that interest, and the product will be the interest required.

RULE 2. Take such fractional part or parts of the principal as the number expressing the time is of 200 morths.

NOTE 1. – To find the amount, add the principal to the interest.

NOTE 2. — - In computing interest for a fractional part of a month, the month is considered as consisting of 30 days. This has the sanction of general usage and the decisions of the courts, though not entirely accurate.

NOTE 3. — Questions in interest, like other exercises in percentage, may be solved by proportion. The foregoing example admits of a statement and solution by the rule of compound proportion (Art. 340).

NOTE 4. — It is customary among merchants to reject the mills in the results of their computations of interest, increasing, however, the number of cents by 1 when the decimal of a cent exceeds 5.

EXAMPLES.

2. What is the interest of $ 675 for 1 year? Ans. $ 40.50 3. What is the interest of $ 3967.87 for 2 years ?

Ans. $ 476.144 4. What is the interest of $ 896.28 for 3 years ?

Ans $161.33 5. What is the amount of $ 716.57 for 4 years ? 6. What is the amount of $ 76.47 for 7 years ?

Ans. $ 108.587 7. What is the interest of $ 123.45 for 6 years ?

Ans. $ 44.442 8. What is the interest of $ 750 for 12 years ?

Ans. $ 540 9. What is the interest of $ 130 for 2 months ? 10. What is the interest of $ 85 for 3 months ?

Ans. $ 1.275. 11. What is the interest of $ 19.62 for 7 months ?

Ans. $ 0.6867. 12. What is the interest of $ 637 for 10 months ?

13. What is the interest of $ 1671.32 for 14 months ?

Ans. $ 116.99. 14. What is the interest of $ 891.24 for 9 months ?

Ans. $ 40.10. 15. What is the interest of $ 91 for 5 days? Ans. $ 0.0758. 16. What is the interest of $ 324.66 for 18 days ? 17. What is the interest of $ 3246 for 27 days?

Ans. $ 14.607. 18. What is the interest $ 1364.24 for 1 day? 19. What is the interest of $ 6444 for 29 days? 20. What is the amount of $18.60 for 24 days? 21. What is the interest of $ 386.19 for 100 months ?

Ans. $ 193.09. 22. What is the interest of $ 0.75 for 75 years ?

Ans. $ 3.371. 23. What is the interest of $ 396.15 for 1 year 1 month and 9 days?

Ans. $ 26.343. 24. What is the interest of $ 36.18 for 3 months and 7 days?

Ans. $ 0.584. 25. What is the interest of $ 97.15 for 2 years 11 months and 27 days?

26. What is the interest of $ 76.89} from January 11, 1852, to July 27, 1863 ?

Ans. $ 53.262. 27. What is the interest of $ 98.25 from July 4, 1856, to October 19, 1859 ?

Ans. $ 19.404. 28. What is the interest of $ 22.763 from February 19, 1836, to July 18, 1860 ?

29. What is the interest of $175.07 from January 7, 1855, to October 12, 1859 ?

Ans. $ 50.04. 30. What is the interest of $ 197.284 from December 6, 1852, to January 11, 1854 ?

Ans. $ 12.987. 31. What is the amount of $ 4377.15 for 3

32. What is the interest of $ 444.60 for 5 years and 6 months ?

Ans. $ 146.718.

years ?

355. To find the interest of any sum of money at any rate per cent. for any given time.

Ex. 1. What is the interest of $ 84.50 at 7 per cent. for 2 years 5 months and 12 days?

Ans. $ 14.49.

« ΠροηγούμενηΣυνέχεια »