12. Required the bank discount and proceeds of a note for $480, due in 9 mo. 27 da., at 8%.

13. Find the difference between the bank and the true discount on a note for $1500, due in 60 da., at 6%.

14. Find the proceeds of a 4 mo. note for $560, dated April 1, 1882, and discounted May 15, 1882, at 6%.

Find the discount and proceeds of notes, using the following conditions, all dates being in the same year:

20. Find the proceeds of a note for $1615, due in 3 mo., with interest, at 7%, discounted at bank.

When a note bears interest, find the discount on the amount of the note at maturity.

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

$1250.

NEW ORLEANS, June 12, 1882.

21. Six months after date, I promise to pay JAS. MARTIN, or order, twelve hundred fifty dollars, with interest at 5%, value received.

Discounted at a broker's, Nov. 15.

GEO. LANE.

$497-0

100

CHICAGO, March 15, 1882.

39

22. Three months after date, we promise to pay J. C. ELLIS, or order, four hundred and ninety-seven dollars, with interest at 6%. Value received. HADLEY BROS.

Discounted at bank, April 20.

$916.

100

SAN FRANCISCO, Feb. 5, 1883.

dollars,

23. Two months after date, we jointly and severally agree to pay JOHN BLISS, or order, nine hundred sixteen with int. at 2% a mo. Value received.

T. H. ROSE,

B. F. MARKS.

Discounted at Marine Bank, Feb. 21, at 10%.

319. To find the face of a note.

1. For what sum must a note be drawn, payable in 90 da., at 6%, so that the proceeds may be $5000?

EXPLANATION-The bank discount of $1 for 93 da., at 6% is $.0155. The proceeds of $1 is $1 - $.0155

=

$.9845.

FORMULA: Proceeds of note÷proceeds of $1 = face of note.

Find the face of notes, the proceeds, time, and rate % of which are as follows:

2. $1265 for 60 da., at 6%. 3. $276.84 for 3 mo., at 7%. 4. $1200 for 30 da., at 5%.

5.

$357.36 for 30 da., at 8%.

6.

$2844 for 8 mo. 9 da., at 7%. 7. $236.28 for 90 da., at 6%.

8. Find the face of a 6 mo. note, the proceeds of which, discounted at 2% a month, are $496.

Find the face of notes, answering to the following data:

12. Owing a man $575, I give him a 60 da. note; what should be the face of the note, to pay him the exact debt, if discounted at 2% a mo.?

13. Find the face of a note which, discounted at a broker's for 110 da., at 1% a mo., will give as its proceeds $187.50?

PARTIAL PAYMENTS.

320. Partial payments are payments in part of the amount of a note, bond, or other obligation.

321. Indorsements are the acknowledgment of such payments, written on the back of the note, bond, etc., stating the time and amount of the same.

322. U. S. COURT RULE.-1. Find the amount of the given principal to a time when the payment, or the sum of the payments, equals or exceeds the interest due.

2. Subtract the payment, or sum of the payments, from amount, and treat the remainder as a new principal.

the

3. Proceed in the same manner with the new principal, and each succeeding one, to the time of settlement.

323. To compute interest on notes and bonds, when partial payments have been made.

$1500.

NEW YORK, April 1, 1881.

1. On demand, I promise to pay to the order of CHAS. RAY, fifteen hundred dollars, with interest at 6%. Value received. S. M. PERKINS.

On this note were endorsed the following payments:

Sept. 16, 1881, $250; May 6, 1882, $325; June 24, 1883, $675. What was due Sept. 9, 1883?

First find the difference between the successive dates, by arranging a "Time Table," as follows:

Write in the first column, in their order, the date of the note, the date of each payment, and the date of settlement.

In the second column, write the difference between each date and the succeeding one, beginning at the top and subtracting downward.

In the third column, write the payments in their order; and in fourth the face of the note, and as the work progresses, write also the amount due after each payment, to be regarded as a new principal.

YR. MO. DA. DIFFERENCE BETWEEN DATES. PAYMENTS. PRINCIPALS.

In computing the interest, the time may be reduced to months or to days, as shall best be adapted to the method used.

The reduction need not appear in the table, the design of the above being to show the completed work.

We give the solution of the preceding example in full, using the U. S. Rule and the method by cancellation, leaving the cancelling to the ingenuity of the pupil. (74, NOTE 2.)

After arranging the table, compute the interest on the principal from the date of the note to the time of the first payment, or for 5 mo. 15 da., etc.

The simplicity, brevity, and practical character of the foregoing method, make it vastly superior to the old methods.

$3000.

MACON, May 7, 1882.

2. On demand, we promise to pay to Robt. E. Park, or order, three thousand dollars, with interest at 7%. Value received. J. W. BURKE & Co.

Indorsed as follows: Sept. 10, 1882, $25; Jan. 1, 1883, $500; Oct. 25, 1883, $75; April 4, 1884, $1500. What remained due, Feb. 20, 1885?

Observe, the first payment is less than the int. due; hence, compute the int. to the time of the second pay't, or for 7 mo. 24 da., and subtract the sum of the two pay'ts. The same thing occurs in the third pay't.