8. What is the interest of $250 for 1 year 10 months and 15 days, at 6% ? Ans. $28.12. 9. What is the interest of $36.75 for 2 years 4 months and 12 days, at 7% ? Ans. $6.088. 10. What is the interest of $51.10 for 10 months and 3 days, at 4% ? 11. What is the interest (6% method) of $200 from June 7, 1892, to Aug. 7, 1892, at 10% ? 12. What is the exact interest of $200 from June 7, 1892, to Aug. 7, 1892? NOTE. Since 1892 is a leap year, we must reckon 363 days to the year. 13. What is the amount of $84.25 for 1 year 5 months and 10 days, at 61% ? 14. What is the interest of $25 for 3 years 6 months and 20 days, at 6% ? Ans. $5.331. 15. What is the interest of $112.50 for 3 months and 1 day, at 91% ? Ans. $2.70+. 16. What is the interest of $408 for 20 days, at 6%? Ans. $1.36. 17. What is the interest of $500 for 22 days, at 7%? 18. What is the amount of $4500 for 10 days, at 10% ? Ans. $4512.50. 19. What is the amount of $1000 for 1 month 5 days, at 63% ? Ans. $1006.561. 20. Find the interest of $973.68 for 7 months 9 days, at 11% ? 21. A man bought a piece of property for $2870 and agreed to pay for it in 1 year and 6 months, with 61% interest. What amount did he pay? Ans. $3149.825. 22. In settling with a merchant, I gave my note for $97.75, due in 11 months, at 5%. What must be paid when the note falls due? Ans. $102.23+. 23. What is the amount of $84 for 5 years 5 months. and 9 days, at 5% ? ANNUAL INTEREST. 310. Annual Interest is simple interest on the principal and on each year's interest remaining unpaid, but so computed as not to increase the original principal. It is allowed in the case of promissory notes and other contracts which contain the words, "with interest payable annually," or "with compound interest." In such cases, the interest is not compounded beyond the second year. EXAMPLES. 1. Find the annual interest and amount of $8000 for 5 yr., at 6% per annum. OPERATION. 66 Int. of $8000 for 1 yr. at 6% = $ 480. = 66 SOLUTION. The interest on $8000 for 1 yr. at 6% is $480, and for 5 yr. is $2400. The interest for the first year, remaining unpaid, draws interest for 4 yr.; that for the second year, for 3 yr.; that for the third year, for 2 yr.; and that for the fourth year, for 1 yr., the sum of which is equal to the interest of $480 for 4 yr. + 3 yr.+ 2 yr. + 1 yr. 10 yr.; and the interest of $480 at 6% for 10 yr. is $288. Hence the total amount of interest is $2400+ $288, or $2688, and the amount is $ 10688. = RULE. Compute the interest on the principal for the given time and rate, to which add the interest on each year's interest for the time it has remained unpaid. To obtain the latter, when the interest has remained unpaid for a number of years, multiply the interest for one year by the product of the number of years and half that number diminished by one. Thus, if the time is 9 yr., the interest for 1 yr. should be multiplied by 9 × (91) 2, or 9 x 4 =36. Since the interest for the first year draws 8 years' interest, that for the second year 7 years' interest, etc., the sum of the series 8+7+6+5+4+3+2+1 is 36. 2. What is the annual interest of $1500 for 4 yr. at 7%? 3. What will $3500 amount to in 10 yr., annual interest, at 8%? 4. What is the difference between the annual interest and the simple interest of $2500 for 6 yr. at 6% ? 5. Find the amount of $575, at 8% annual interest, for 9 yr. 6. Find the amount of $2300 for 3 yr. 5 mo. 18 da., at 8% annual interest. 7. Find the amount of $ 1800 for 6 yr., at 6% annual interest. 8. What is the difference between the annual interest and the simple interest of $1800 for 5 yr. 8 mo., at 5%? 9. Find the annual interest and the amount of $10000 for 3 yr. 6 mo., at 8%. 10. Find the amount of $3420 for 6 yr. 6 mo., at 6% annual interest. 11. Find the annual interest and the amount of $850 for 4 yr. 2 mo., at 7%. 12. What is the difference between the annual interest and the simple interest of $5600 for 4 yr. 3 mo. 15 da., at 6%? 13. What will $ 2425 amount to in 5 yr., at 8% annual interest? 14. What is the annual interest of $10000 for 3 yr. 5 mo. 10 da., at 6%? What is the simple interest? What is the difference between the annual interest and the simple interest? 15. What is the difference between the annual interest and the simple interest of $600 for 1 yr., at 5%? For 2 yr.? For 3 yr.? 16. What is the amount of $13425 put at annual interest for 5 yr. 6 mo., at 4%? PARTIAL PAYMENTS OR INDORSEMENTS. 311. A Partial Payment is payment in part of a note, bond, or other obligation. When the amount of a payment is written on the back of the obligation, it becomes a receipt, and is called an Indorsement. 1. Promissory Notes are written promises to pay certain sums of money on demand, or at specified times, as "30 days after date," 2 months after date, etc. They constitute one of the most important forms of commercial paper. Other forms, as checks, drafts, etc., will be treated of under other heads. 2. The Maker or Drawer of the note is the person who draws it up and signs it. The Payee is the person to whom or to whose order the money is paid. 4. An Indorser is a person who signs his name on the back of the note. By such an indorsement he makes himself responsible for the payment of the note. 5. The Face of a note is the sum of money made payable by the note. 6. A Negotiable Note is one made payable to bearer, or to any person's order. When so made it can be sold or transferred. EXAMPLES. $2000. SPRINGFIELD, MASS., Jan. 4, 1890. 1. For value received I promise to pay James Parish, or order, two thousand dollars, one year after date, with interest. GEORGE JONES. On this note were indorsed the following payments: Feb. 19, 1891 . . June 29, 1892. Nov. 14, 1892 What remained due Dec. 24, 1893? $400 $1000 $520 Remainder for a new principal Interest from Feb. 19, 1891, to June 29, 1892, 1 yr. 4 mo. 10 da. Amount • Payment June 29, 1892 Amount Payment Nov. 14, 1892 Remainder for a new principal Interest from June 29, 1892, to Nov. 14, 1892, 4 mo. 15 da. Remainder for a new principal Interest from Nov. 14, 1892, to Dec. 24, 1893, 1 yr. 1 mo. 10 da. Remainder due Dec. 24, 1893 66 66 $2000 135 $2135 400 $1735 104 141.69 $1876.69 1000 $876.69 $475.50. NEW YORK, May 1, 1889. 2. For value received, we jointly and severally promise to pay Mason & Bro., or order, four hundred seventyfive dollars fifty cents, nine months after date, with interest. JONES, SMITH & Co. The following indorsements were made on this note: Dec. 25, 1889, received. $50 66 July 10, 1890, Sept. 1, 1891, June 14, 1892, 15.75 25.50 19.725 $896.415 25.09 $401.505+ |