(65.) $875. CONCORD, N. H., Feb. 7, 1876. I promise to pay Charles Edwards, or order, eight hundred seventy-five dollars, with interest annually. Value received. PORTER W. FRENCH. INDORSEMENTS: June 7, 1876, $ 20; Feb. 26, 1877, $ 300; Jan. 20, 1879, $200. What was due April 7, 1879 ? OPERATION. First payment June 7, 1876, is less than the interest due at the (66.) $ 274. PORTSMOUTH, N. H., April 7, 1876. I promise to pay Jacob Bowen, or order, two hundred seventyfour dollars, on demand, with interest annually. Value received. SAMUEL FRENCH. INDORSEMENTS: March 31, 1877, $100. What is due on this note April 7, 1879? 554. Vermont Rule for notes "with interest annually." If the payment, or sum of the payments, is not less than the interest due at the end of the year, the rule is the same as that already given in Art. 553. If the payment, or sum of the payments, is less than the interest due at the end of the year, with these payments plus the interest on them, (1) cancel the simple interest due on the annual interests, and (2) take the remainder from the sum of the annual interests due. On the excess of interest then due cast simple interest to the end of a year when the payments, or sum of the payments, exceeds the interest due. NOTE. If the payment is less than the simple interest due on the annual interest, no interest must be cast on the balance of simple interest still due after deducting the payment. (67.) $ 356. MONTPELIER, VT., July 10, 1875. I promise to pay Josiah F. Monroe, or order, three hundred fifty-six dollars, on demand, with interest annually. Value received. JABEZ WHITMAN. INDORSEMENTS: Dec. 6, 1875, $20; March 6, 1877, $75; Oct. 11, 1878, $15. What was due Nov. 6, 1879? OPERATION. First payment Dec. 6, 1875, is less than the interest due at the end of the year. Principal Annual interest due July 10, 1876........ Amount of $20 Dec. 6, 1875, to July 10, 1876....... Balance interest due July 10, 1876........ $356.00 $21.36 20.71 $0.65 Interest on $0.65 July 10, 1876, to July 10, Interest on $75 Mar. 6, 1877, to July 10, 1877 1.55 76.55 Amount due July 10, 1877. Annual interest on $301.50 due July 10, 1878 $18.09 Interest on $18.09 July 10, 1878, to July $301.50 10, 1879........ 1.085 Annual interest on $ 301.50 due July 10, 1879 18.09 Interest due July 10, 1879........ $37.265 Amount $15, Oct. 11, 1878, to July 10, 1879 15.672 Balance interest due July 10, 1879.. $21.59 Interest on $21.59 July 10, 1879, to Nov. 6, 1879......... 0.42 Interest on $ 301.50 July 10, 1879, to Nov. 6, 1879..... 5.88 27.89 Ans. $329.39 Amount due Nov. 6, 1879 555. New Hampshire Rule for notes "with interest annually," is the same as the Vermont Rule, except When no interest is due except what is accruing during the year, and the payment, or sum of the payments, is less than the interest due at the end of the year, these payments are applied at the end of the year without interest added. Thus, in Ex. 67, if performed by the N. H. rule, the $20 paid Dec. 6, 1875, would not draw interest from Dec. 6, 1875, to July 10, 1876, and the amount to subtract from the annual interest due July 10, 1876, would be $0.71 less. In other respects the work is precisely the same. The Ans. by the N. H. rule is $ 330.24, and by the rule in Art. 553, $329.43. 68. Find the amount due Sept. 17, 1879, by the general rule (Art. 553) and by the New Hampshire and Vermont rules on a note of $2567, with interest annually, dated April 18, 1876, on which are the following indorsements: Sept. 13, 1876, $120; May 19, 1877, $955; Oct. 10, 1878, $ 65. FOREIGN EXCHANGE. 556. A foreign bill of exchange is an order drawn in one country and payable in another. NOTE. An inland bill of exchange is an order payable in the same country where it is drawn, and is called a draft. 557. In making foreign bills it is customary to draw a set of two or more bills of the same tenor and date, called a "set of exchange," each containing a clause, which renders all the bills in the set worthless except the one first presented to the drawee. These bills are sent at different times, so that, if one or more of the set is delayed or lost, there may be no unnecessary delay in obtaining the money. 558. The par of exchange in any country is the value of the standard coin of that country in the standard coin of the country in which the quotation is given. Thus, the present English sovereign contains 123.274 grains Troy of gold, of a fineness of 916.66 to a thousand. The U. S. $5 piece contains 129 grains Troy, of a fineness of 900 to a thousand. The U. S. government has had these two coins compared, and finds the value of the sovereign, or £, to be $4.8665 in coin of the same fineness as the U. S. half-eagle. $4.8665, therefore, is the par value of an English £., or the par of exchange on England is $ 4.8665. 559. Exchange is usually at a slight premium or discount from its par value, depending upon the supply and demand, the cost of remitting specie to settle balances, the time for which the bills are drawn, etc. 560. The par value of the monetary unit of different countries in U. S. gold coin is given in Art. 547, page 347. 561. To find the value of a bill of exchange, the value expressed in the given currency must be changed to an equivalent value in the required currency. 562. In a daily paper foreign exchange is quoted as follows: Sterling sight 4.88, 60 days 4.86; Francs sight 5.13, 60 days 5.15; Marks sight 964, 60 days 951. = By these quotations 1 £ sterling $4.88 if the bill of exchange is drawn payable at sight, or $4.86 if drawn payable in 60 days after sight; 5.13 francs $1.00 if drawn at sight, or 5.15§ francs $1.00 if drawn at 60 days after sight; 4 marks sight, or $0.95 if at 60 days after sight. = $0.964 if drawn at Boston, Mass., July 11, 1879. Exchange for £ 1344. 16/6 Stg. Sixty days after sight pay this First of Exchange, second and third of the same tenor and date not paid, to the order of William M. Edgerly, the sum of thirteen hundred forty-four pounds 16/6 otg. of Value received, and charge the same to account To Messrs. Baring Bros. & Co., London, England. |