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6. I paid, in cash, $240 for a lot of merchandise. I sold it the same day, receiving a note for $250, at 60 days, which I got discounted at the Hartford Bank. What did I make by this speculation?

7. A note for $360.76, drawn at 90 days, is discounted at the Vermont Bank. Find the proceeds.

Ans. $355.168.

8. Wishing to borrow $530 of a western bank which is discounting paper at 8%, I give my note for $536.75, payable in 60 days. How much do I need to make up the required amount? Ans. $.7645.

1. To indicate the maturity of a note or draft, a vertical line () is often used, with the day at which the note is nominally due on the left, and the date of maturity on the right; thus, Jan. 10.

2. When a note is on interest, payable at a future specified time, the amount is the face of the note, or the sum made payable, and must be made the basis of discount.

Find the maturity, term of discount, and proceeds of the following notes:

$500.

BOSTON, Jan. 4, 1889.

9. Three months after date, I promise to pay to the order of John Brown & Co. five hundred dollars, at the Suffolk Bank, value received. JAMES BARKER.

Discounted March 2.

Ans.

Due,
April 17.
Term of discount, 36 da.
Proceeds,

$497.

$750.

ST. LOUIS, June 12, 1891.

10. Six months after date, for value received, I promise to pay Thomas Lee, or order, seven hundred fifty dollars, with interest. BYRON QUINBY.

Discounted at a broker's, Nov. 15, at 10%.

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332. Given the proceeds of a note, to find the face.

1. I wish to borrow $400 at a bank. For what sum must I draw my note, payable in 60 days, so that when discounted at 6% I shall receive the desired amount ?

OPERATION.

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$.9895 proceeds of $1. $400 $.9895 $404.244

the required note.

and then divide the given proceeds, $400, by this sum; for, as many times as the proceeds of $1 is contained in the given proceeds, so many dollars must be the face of the required note.

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SOLUTION.-$400 is the proceeds of a certain note, the face of which we are reWe quired to find. first obtain the proceeds of $1 for 63 da., which is $.9895,

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RULE. Divide the proceeds by the proceeds of $1 for the time and rate mentioned, and the quotient will be the face of the note.

2. What is the face of a note at 60 days, which yields $680 when discounted at a bank at 7% ?

Ans. $688.433.

3. What is the face of a note at 90 days, of which the proceeds are $1000 when discounted at a Louisiana bank? Ans. $1013.085.

4. Wishing to borrow $500 at a bank, for what sum must my note be drawn, at 30 days, to obtain the required amount, discount being at 7%? Ans. $503.22.

5. James Hopkins buys merchandise of me in New York, at cash price, to the amount of $1256. Not having money, he gives his note in payment, drawn at 6 months. What must be the face of the note?

Ans. $1295.51.

6. The proceeds of a note drawn at 2 mo. 15 da., rate 6%, are $987. What is the face of the note? Ans. $1000.

SAVINGS-BANK ACCOUNTS.

333. A Savings-Bank is designed chiefly to accommodate depositors of small sums of money.

Interest is allowed semi-annually on all sums that have been on deposit for a certain time, if not drawn out before the regular day of paying interest-generally on the 1st of January and of July.

Savings-banks generally allow interest only from the commencement of each quarter; but in some banks money deposited previous to the 1st day of any month draws interest from that date to the day of declaring interest dividends, provided it has not been previously withdrawn.

EXAMPLES.

1. A person had on deposit Jan. 1, 1874, $150. His subsequent deposits were, Feb. 3, $35; March 29, $20; April 10, $43; May 15, $26. His drafts during the same time were, Jan. 15, $50; Feb. 27, $15; April 19, $45. What interest was due July 1st, at 6% ?

OPERATION.

Date of Int. Balance Smallest bal. Interest Smallest bal. Interest for payments. 1st of month. during mo. for 1 month. dur'g q'rter. 1 quarter.

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2.07

$3.57

$3.80

Balance due with interest by monthly periods. . . $167.80.
Balance due with interest by quarterly periods. . $167.57.

SOLUTION. At the end of January, the balance due is $100, which having been on deposit for the month, draws interest for 1 mo.; at the end of February the balance is $120; but the smallest balance during the month is $100; hence interest is allowed only on that sum. The same principle applies to the other balances. If only quarterly periods of interest are allowed, the interest is calculated at the end of each quarter on the smallest balance during the quarter, or, in this case, on $ 100, April 1, and $ 138, July 1.

RULE. At the end of each term compute the interest for the term on the smallest balance on deposit at any time during the quarter; and at the end of each period of six months add to the balance of principal the whole amount of interest due, and the sum will be the principal at the commencement of the next six months.

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2. Find the balance due July 1, on the following account: Deposits, Jan. 15, $175; April 10, $60; May 31, $110. Drafts, March 5, $ 75; May 1, $35; June 10, $50. Interest at 6%, from the 1st day of each month. Ans. $188.43, balance July 1. 3. A person deposits in a savings-bank the following sums: Jan. 1, $350; Feb. 5, $150; March 15, $75; May 10, $30; June 15, $100. During the same time he draws, Jan. 15, $150; Feb. 10, $200; March 31, $50; June 1, $75. What interest at 6%, payable from the 1st of each month, must be added to the account July 1?

4. Balance the following, Jan. 1, 1875: Balance due to Margaret Brown, July 1, 1874, $275. Deposits received as follows: Aug. 1, $125; Sept. 15, $57; Oct. 10, $350. Drafts paid: July 15, $100; Sept. 1, $150; Nov. 15, $68; Dec. 15, $125. Interest at 6%, from the first of each quarter, July 1 and Oct. 1. Ans. $369.36.

5. How much was due Jan. 1, 1876, on the following account, allowing interest, computed from the 1st of each quarter, Jan. 1 to July 1, at 6% per annum?

Dr. GREENWICH SAVINGS BANK, in acct. with MARY WILLIAMS. Cr.

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EXCHANGE.

334. Exchange is a method of remitting money from one place to another, or of making payments by written orders.

335. A Bill of Exchange is a written request or order upon one person to pay a certain sum to another person, or to his order, at a specified time.

336. A Sight Draft or Bill is one requiring payment to be made "at sight," which means at the time of its presentation to the person ordered to pay. In Time Drafts, the time specified is usually a certain number of days "after sight."

There are always three parties, and usually four, to a transaction in exchange.

337. The Drawer or Maker is the person who signs the order or bill. The Drawee is the person to whom the order is addressed.

338. The Payee is the person to whom the money is ordered to be paid.

339. The Buyer or Remitter is the person who purchases the bill. He may be himself the payee, or the bill may be drawn in favor of any other person.

340. The Indorsement of a bill is the writing upon its back, by which the payee relinquishes his title, and transfers the payment to another. The payee may indorse in blank by writing his name only, which makes the bill payable to the bearer, and consequently transferable like a bank note; or he may

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