1006 



THE AMERICAN FARMER. 



To COMPUTE INTEREST WHEN PARTIAL PAYMENTS HAVE BEEN MADE. 



UNITED STATES RULE. 1. Find the interest and amount of the principal to the time of the 

 first payment : if the payment is greater than the interest, subtract the payment from the amount, and 

 treat the remainder as a new principal. II. If the payment is less than the interest, find the 

 amount of the note to the time when the sum of the payments shall exceed the interest due, subtract 

 the sum of the payments from the amount, and proceed as before. 



This rule was founded upon the decision of Chancellor Kent. The principle is that 

 neither interest nor payment shall draw interest. It has been adopted by nearly all the States 

 New Hampshire, Vermont, and Connecticut being the principal exceptions. In Connecti 

 cut, the Supreme Court has adopted the following principles in the calculation of interest: 



I. Payments made when interest has run a year or more, and those less than the interest are 

 treated as in the U. S. rule. II. A payment made ivithin a -year from the beginning of any interest 

 draws interest for the rest of that year, if that year docs not extend beyond settlement; and its amount 

 must be taken from the amount of the principal for that year. But if the year docs extend beyond 

 settlement, the amounts are computed for both principal and payment, to settlement. The difference 

 of these amounts is the balance due. 



In some States, as in Vermont and New Hampshire, what is called annual interest is 

 allowed; that is, if interest is not paid when due, it will bear simple interest. 



COMMERCIAL OR MERCHANTS RULE. Find the amount of the principal at the time of settle 

 ment. Then find the amount of each payment from the time it was made until settlement, and sub 

 tract the sum of the amounts of the payments from the amount of the principal. 



TIME REQUIRED FOR DIGESTING FOOD. 



