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 the amount, and treat the remainder as a new principal. 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, $375; 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. $500. SAN JOSE, Feb. 1, 1885. 3. Three months after date, I promise to pay to the order of C. H. ALLEN, five hundred dollars, with interest at 11% a month. Value received. JOHN SWETT. Indorsements: May 1, 1885, $40; Nov. 13, 1885, $20 May 1, 1886, $75. What was due Sept. 16, 1886 ? $475 100. RACINE, May 1, 1882 4. Nine months after date, I promise to pay A. R. SPRAGUE, or order, four hundred seventy-five and dollars, with 7% interest. Value received. 10% B. B. NORTHRUP. The following payments were made on this note: Dec. 25, 1882, $50. July 10, 1883, $15.75. What was due April 13, 1885? Sept. 1, 1883, $25.50. June 16, 1884, $104. 5. Find what would be due on the same note Oct. 10, 1884, at 8%. 6. D. W. McWilliams holds a bond against Jacob Gosler, dated June 20, 1882, for $4800, on interest at 6%. Indorsements: May 5, 1883, $1200; Aug. 14, 1884, $950; May 12, 1885, $2000. What will be due Nov. 24, 1885 ? 7. A note for $900, dated March 10, 1881, payable on demand, with interest, at 61%, bears the following indorsements: July 3, $175; Oct. 21, $284.50; Jan. 6, 1882, $310. What is due May 16, 1882? 8. What would be due upon this, if settled Nov. 15, 1883, at 1% a mo. ? 9. A mortgage for $3840, dated Rochester, April 1, 1879, bearing int. at 5%, has the following payments indorsed upon it: Jan. 1, 1880, $550; Aug. 7, 1880, $1000; Feb. 10, 1881, $790; July 13, 1881, $264.50. What amount will be due April 1, 1882 ? 324. The following method of computation is often used by merchants in the settlement of notes and of interest accounts running a year or less; hence called the MERCANTILE RULE. 1. Find the amount of the note or debt from its date to the time of settlement. 2. Find the amount of each payment from its date to the time of settlement. 3. Subtract the sum of the amounts of payments from the amount of the note or debt. An accurate application of this rule requires that the time should be reduced to days, allowing 365 da. to the year. 1. On a note for $600 at 7%, dated Feb. 15, 1884, were the following indorsements: March 25, 1884, $150; June 1, 1884, $75; Oct. 10, 1884, $100. What was due Dec. 31, 1884? 2. A note for $950, dated Jan. 25, 1883, payable in 9 mo., at 7% int., had the following indorsements: Mar. 2, 1883, $225; May 5, 1883, $174.19; June 29, 1883, $187.50; Aug. 1, 1883, $79.15. Find the balance due at the time of its maturity? 3. Payments were made on a debt of $1750, due April 5, 1882, as follows: May 10, 1882, $190; July 1, 1882, $230; Aug. 5, 1882, $645; Oct. 1, 1882, $372. What was due Dec. 31, 1882, interest at 6%? For methods of computation in the States of Vermont, New Hamp shire, and Connecticut, see "Addenda." |