190 ARITHMETIC. 



The present ivorth of any sum, or debt, due some time 

 hence is such a sum, as, if put to interest, would in that 

 time and at the rate per cent, for which the discount is to 

 be made, amount to the sum or debt then due. 



RULE.* 



,1. As the amount of lool. for the given rate and time 

 is to I col. so is the given sum or debt to the present 



worth. 



2. Subtract the present worth from the given sum, and 

 the remainder is the discount required. 



Or, 



As the amount of lool. for the given rate and time is 

 to the interest of looI. for that time, so is the given sum 

 or debt to the discount required. 



EXAMPLES. 



* That an allowance oUgbt to be made for paying money be- 

 fore it becomes due, which is supposed^ bear no interest till af- 

 ter it is due, is very reasonable ; for, if I keej? the money in my 

 own Jiands till the debt becomes due, if is plain I may make an 

 advantage of it by putting it out to interest for that time ; but if I 

 pay it before it is due, it is giving that benefit to another ; there- 

 fore we have only to enquire what discount ought to be allowed. 

 And here some debtors will be ready to say, that since by not 

 paying the money till it becomes due, they may employ it at in- 

 terest, therefore by paying it before due, they shall lose that inter- 

 est, and for that reason all such interest ought to be discount- 

 ed : but that is false, for they cannot* be said to lose that interest 

 till the time the debt becomes due arrives ; whereas we are to 

 consider what would properly be lost at present, by paying the 

 debt before it becomes due ; and this can, in point of equity or 



justice. 



y 



