The Universal Modern Cambist, and Foreign and Domestic Commercial Calculator

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1875 edition. Excerpt: ...on the present worth for 1 year, plus the interest on the interest of the present worth, at the same rate per centum for 1 year. See Sec. B., p. 1. COMPOUND DISCOUNT. Compound Discount is to compound interest what simple discount is to simple interest. In both cases of discount, the difference between the principal and the discount is that sum of money, which, if put at interest for the same length of time, at the same rate, and m the same general manner as the discount, will amount to the principal. Rule.--Add 1 to the rate per cent. of the discount for the working-time, and raise the sum to a power corresponding with the number of working-times; divide the principal by the power, and the quotient will be the present worth; subtract the present worth from the principal, and the remainder will be the compound discount. Note.--The TABLKS of the powers of 1 + r, applicable to compound interest, are equally applicable to compound discount. Example.--Required the present worth of a debt of $250, allowing yearly compound discount, at 7 per cent. a year, for S years 84 days. 1-1-, = 1.01611, the workinjj-rate for the 84 days, and 365 c' 250-f-(1.07 X 1.01611) = $200.84. Ans. Example.--What is the present worth of a debt of $150.25, due 3 years, 3 months, and 10 days hence, without interest, allowing compound discount per quarter-year, at 1 per cent. per quarter-year? 150.25-fY 1.015" X l.6X 10=Atu. 365 / By table, 150.25-(1.19562 X 1-015 X 1.00164) = $123.61. Ans. Note.--What is here denominated the debt, or principal, represents the debt at the close of the time of the discount; that is, if the debt be on interest, the interest must be included in what is here called the debt, or principal. PROFIT AND LOSS. The term "profit And...