Note. In this question it will be seen that the principal, interest, and time, are given, to find the rate per cent. Therefore, if we divide the interest by the product of the principal and time, the quotient will be the rate per cent. Thus, 381×9=3429(240,03(07=7 per cent. Ans. 5. At what rate per cent will $500 gain $127,50 interest in 8 years? Ans. 3 per cent. CASE IV. The principal, rate per cent, and amount given, to find the time. RULE. Subtract the principal from the amount, and the remainder will be the interest. 2. Divide the interest by the product of the ratio and principal, and the quotient will be the time. EXAMPLES. 1. In what time will $325 amount to $390, at 5 per cent per annum ? $390,00 325×05 16,25)65,00(4 years, Ans. 65,00 2. In what time will $450 amount to $698,625, at 6 per cent, or ,065 ? Ans. 8,5 or 8 years. 3. In what time will $381 amount to $621,03, at 7 per cent? Ans. 9 years. 4. In what time will $500 gain $127,50 interest at 3 per cent? 500,03=15,00)127,50(8,5=8 years. 5. In what time will $856,17 gain $222,6042 at 6 per cent per annum? Ans. 4 years. CASE V. To calculate interest for days. RULE. Multiply the principal by the ratio and that product by the given number of days, and divide the last product by 365, (the number of days in a year,) and you will have the interest required. EXAMPLES. 1. What is the interest of $341 for 250 days, at 6 per cent? $341 20,46 250 102300 4092 365)5115,00(14,013+$14 1c. 3m.+ 2. What is the interest of $125 for 135 days, at 5 per cent per annum ? Ans. $2 54c. 2m.+ 3. What is the interest of $525 for 73 days, at 7 per cent? Ans. $7,35. CASE VI. To compute interest on notes or obligations, when there are payments in part, or endorsements. RULE. 1. Find the amount of the whole principal for the whole time. 2. Find the amount of each payment from the time it was paid to the time of settlement; and lastly deduct the amount of the several payments from the amount of the whole principal. EXAMPLES. 1. For value received, I promise to pay William Merchant, or order, five hundred dollars, with interest. July 1st, 1828. JAMES PAYWELL. How much remained due, April 16th, 1832, interest at 6 per cent? Principal on interest from July 1st, 1828, $500 00 Interest to April 16th, 1832, 3yr. 9m. 15d. (45m.) 113 75 Whole amount of principal, $613 75 First payment Feb. 1, 1829, $158,000 Interest to April 16th, 1832, (381m.) 30,415 225,000 Interest to April 16th, 1832, (24 m.) 27,187 Interest to April 16th, 1832, (10m.) 50,000 Amount of the payments deducted, $493,185 Ans.-Remains due, April 16th, 1832, $120,565 2. On demand, for value received, I promise to pay Peter Trusty, or order, six hundred and fifty dollars with interest. May 11th, 1829. $650 TIMOTHY CAREFUL. September 6, 1832 $208 00 How much remained due on said note, January 16th, 1834; interest at 6 per cent? $1000. Ans. $167 62c. 6m. New London, September 20, 1830. For value received, I promise to pay James Judson, or order, one thousand dollars, on demand, with interest. JAMES RICHARDSON. Endorsements. October 15, 1831, received, $500: January 20, 1832, April 10, 1833, March 5, 1834, $225. $158. $177,50. How much remains due on said note, February 25th, 1835, allowing interest at 6 per cent? Ans. $34 55c. 9m. The foregoing rule for computing interest on notes and obligations where endorsements have been made, may be considered incorrect, from the fact that it does not proceed on the ground of the annual payment of interest. But it may be considered correct, where notes or obligations are given on interest, payable at a future period, without any conditions of paying the interest annually. Thus, if A give B his note on interest, for $100, payable at some future period, without any condition of paying the interest yearly, B cannot demand any part of the note, or interest, until the time arrives when the whole becomes due; and in this case, if A advances to B any part of said note or interest, by way of endorsement, before said note becomes due, heis entitled to interest on said endorsement, from the time it was paid, up to the time when the note becomes due; because in this case, B will have the use of A's money before it becomes due, and ought, therefore, to pay interest on the same. But when notes are given payable at a future period with interest annually, this rule will not be correct. For if A gives B his note for $100, for a term of years on interest, at 6 per cent, to be paid annually at the end of each year, and A accordingly pays the yearly interest of $6, and has it endorsed thereon, (which according to the tenor of A's note is then justly due to B) it is evident that A would not be entitled to any interest on these endorsements of the yearly interest, at the time of final settlement. For A is Dound to pay this yearly interest by the tenor of his note. It is therefore evident that in this case, the foregoing rule will not give a correct result. 66 CONNECTICUT RULE. Established by the Supreme Court of the State of Conn. Compute the interest to the time of the first payment, if that be one year or more from the time the interest commenced, add it to the principal, and deduct the payment from the sum total; if there be after payments made, compute the interest on the balance due to the next payment, and then deduct the payment as above; and in like manner, from one payment to another, till all the payments are absorbed; provided, the time between one payment and another be one year, or more. But if any payment be made before one year's interest has accrued, then compute the interest on the principal sum due on the obligation, for one year; add it to the principal, and compute the interest on the sum paid, from the time it was paid, up to the end of the year; add it to the sum paid, and deduct that sum from the principal and interest added as above.* "If any payments be made of a less sum than the interest, arisen at the time of such payment, no interest is to be computed, but only on the principal sum for any period.” EXAMPLES. 1. A note, dated January 4th, 1829, was given for $1000, on interest, at 6 per cent, and there were payments endorsed on it as follows, viz: 1st payment, February 19th, 1830, 2d 66 $200. $500. * If a year does not extend beyond the time of final settlement: but if it does, then find the amount of the principal remaining unpaid, up to the time of settlement: likewise the amount of the sum paid, from the time it was paid, up to the time of final settlement, and deduct this amount from the amount of the principal. But if there be several payments made within said time, find the amount of the several payments, from the time they were paid, to the time of settlement, and deduct the sum of the several amounts, from the amount of the principal. I demand how much remains due on said note, the 24th of December, 1832. $1000,00 principal of the note. 67,50 interest to February 19th, 1830, (134mo.) 1067,50 amount. 200,00 1st payment deducted. 867,50 due February 19th, 1830. 70,845 interest to June 29, 1831, (16ļmo) 938,345 amount. 500,000 second payment deducted. 438,345 balance due, June 29th, 1831. 464,645 amount for one year. 373,50 S amount of 3d payment to June 29, 1832, 91,145 due June 29th, 1832. 2,657 interest to Dec. 24th, 1832, (5m. 25d.) 93,802 balance due on said note, Dec. 24th, 1832. MASSACHUSETTS RULE. Compute the interest on the principal sum to the first time when a payment was made, which, either alone or together with the preceding payment, (if any,) exceeds the interest then due; add that interest to the principal, and from the sum subtract the payment, or the sum of the payments made at that time, and the remainder will be a new principal, with which proceed as with the first principal; and so on to the time of settlement. $800. March 1, 1822. 1. For value received, I promise to pay William Stanby, or order, eight hundred dollars, with interest. JAMES PAYWELL. |