BUSINESS PROBLEMS 

 BORROWING MONEY FROM INDIVIDUALS 



121. Individuals, as a rule, demand the interest when a 

 note is due, or annually, if the note runs longer than a year. 

 They reckon interest by months and years, and may or may 

 not require the maker of the note to give security. 



122. A note is a written promise to pay a certain sum of 

 money at a specified time. 



The following is the usual form of a note : 



Booneville, Ky., March 1, 1913 



One year after date I promise to pay to Raymond David- 

 son or order, Eighty-five Dollars, for value received, with 

 interest at 6%. Silas Moore 



NOTE TO TEACHER. Require each member of the class to give his 

 note to a classmate. Continue this drill until note writing becomes a 

 simple matter. 



INTEREST 



123. Interest is money paid for the use of money, and is 

 reckoned by the year. 



124. Rule. To find the interest on the face of a note, 

 multiply the face of the note ly the rate of interest expressed 

 as hundredths; then multiply by the number of years, or the 

 fractional part of a year, that the note runs. 



EXAMPLE. What is the interest on f 200 for 1 yr. 6 mo. at 6% ? 

 SOLUTION. |200 (Principal) 



.06 (Rate) 

 $12.00 



1^ (Years) 1 yr. 6 mo. = \\ yr. 

 $18.00 (Interest) 



106 



