Payment Dec. 25th, exceeding int. then due, Remainder for a new principal Interest of $313,64,9 from Dec. 25th, 1826, to June 14th, 1829, 2 years 5 months 19 days, $363,64,7 $ 49,99,8 $313,64,9 $ 46,47,2+ $360,12,1 $252,16,1+ Total due, April 15th, 1830. 2. For value received, I promise to pay WILLIAM JENKS, or order, three thousand four hundred and sixty nine dollars and thirty two cents, with interest from date, at 6 per cent. Feb. 6th, 1825. $3469,32 BILL SPENDTHRIFT. On this note were endorsed the following pay ments: May 16th 1828, received $545,76 Feb. 1st 1831, received $2074,72 What remained due Aug. 11th, 1832? Ans. $860,91+ 3. A's note of $635,84 was dated Sept. 5th on which were endorsed the following payments, viz.-Nov. 13th 1819, $416,08; May 10th 1820, $152: what was due March 1st 1821, the interest being 6 per cent. ? Ans. $167,99+. COMPOUND INTEREST. $193. Compound Interest is when the interest on a sum of money becoming due, and not being paid, is added to the principal, and the interest then calculated on this amount, as on a new principal. For example, suppose I were to borrow of Mr. Wilson $200 for one year, at 6 per cent. and at the end of the year pay him neither the interest nor principal. Now if Mr. Wilson should add the interest $12 to the principal $200, making $212, and charge me with interest on this sum till I paid him, this would be Compound Interest, because it is interest upon interest. RULE. Calculate the interest to the time at which it becomes due: then add it to the principal and calculate the interest on the amount as on a new principal: add the interest again to the principal and calculate the interest as before: do the same for all the times at which payments of interest become due : from the last result subtract the principal, and the remainder will be the compound interest. Eo: 1. What will be the compound interest at 7 $3750 for 4 years, the interest being add i $3750,00 prin. for first yr. $3750×7+100= 262,50 int. for 1st year. 4012,50 principal 2d $4012,50×7÷100= 280,87+ int. for 2d 4293,37+ prin. 3d $4293,37×7-100= 300,53+ int. 3d " 4593,90+ prin. 4th $4593,90×7÷100= 321,57+ int. 4th 4915,47+ amt. at 4 yrs. $1165,47+ amt. of int. 1st principal 3750,00 2. What will be the compound interest on $295,37 at 6 per cent. for 2 years, the interest being added annually ? Ans. $36,50+. 3. What will be the compound interest on $500 for one year at 8 per cent. the interest being computed quarterly? \ Ans. $41,21+. QUESTIONS. § 184. What is Interest ? § 185. What is the money called on which interest is paid? What is the money called which is paid for the use of the principal? What is the amount? What determines the rate of interest? What is legal interest? How much is it in most of the states? What is it in New York ? § 186. How do you find the interest on any principal for one or more years? § 187. If the principal contains only dollars, how do you find the interest? When it contains dollars and cents, what do you do? How do you do when it contains dollars, cents, and mills? § 188. How do you find the interest for any n months at 6 per cent.? § 189. How do you find the interest for any number of days at 6 per cent.? § 190. How do you find the interest at 6 per cent. for years, months, and days? § 191. How do you do when there are months and days, and the rate of interest is greater or less than 6 per cent.? § 192. How do you find the interest when the sum is in pounds, shillings, and pence? § 193. What is compound interest? How do you calculate compound interest? COMMISSION AND BROKERAGE. §194. Commission and Brokerage are allowances made to Factors and Brokers for their services in buying and selling. The allowance made is generally a certain per cent. on the moneys paid out or received, and the amount may be determined by the rules of simple interest. Ex. 1. What is the commission on $4396 at 6 per cent. ? 4396 263,76 Ans. $263,76. 2. A factor sells 60 bales of cotton at $425 per bale, and is to receive 21⁄2 per cent. commission: how much must he pay over to his principal? Ans. $24862,50. 3. A sent to B, a broker, $3825 to be invested in stock: Bis to receive 2 per cent. on the amount paid for the stock: what was the value of the stock 12 Commission on $3750 at 2 pr. ct.= 75 Total Sum $3825 4. A factor receives $708,75, and is directed to purchase iron at $45 per ton: he is to receive 5 per cent. on the money paid: how much iron can he purchase? Ans. 15tons. INSURANCE. § 195. Insurance is an agreement by which an individual or a company agrees to exempt the owners of certain property from loss or hazard. The written agreement is called the policy. The premium is the amount paid by him who owns the property, to those who insure it, as a compensation for their risk. It is generally so much per cent: on the value of the property insured. Ex. 1. What would be the premium for the insurance of a house valued at $5500 against loss by fire for 1 year, at per cent? |