110 BUSINESS PROBLEMS 



2. Let each member of the class write a note for $200 for 

 60 da., with interest at 6%, payable to the local bank. 

 Secure some member of the class for security. When is the 

 note due ? What is the bank discount ? What are the 

 proceeds of the note ? 



i 



THE Six PER CENT METHOD OF FINDING INTEREST 



131. The interest on $1 for 



1 yr. is $0.06 (60) 



2 mo. is $0.01 

 1 mo. is $0.005 



30 da. (1 mo.) is $0.005 

 6 da. is $0.001 (1 mill) 



When the rate is 6%, count ^ of the months cents and 

 of the days mills, and multiply their sum by a number 

 equal to the number of dollars in the principal. 



EXAMPLE. Find the interest on $870 for 3 mo. 12 da. at 6%. 



SOLUTION. J of months counted as cents. 2) 3 mo. = $0.015 



J of days counted as mills, 6)l2 = 0.002 



$0.017 



The interest on $1 for 3 mo. 12 da. at 6% is 

 $0.017, and on $870 it would be 870 x $0.017 = $14.79. 



132. If the rate is any other than 6%, find the interest 

 on $1 for the given time at 6%, and take of this sum the 

 fractional part the given rate is of 6% and multiply by a 

 number equal to the number of dollars in the principal. 



EXAMPLE. Find the interest on $600 for 5 mo. 18 da. at 7%. 



SOLUTION. of months counted as cents, $0.025 



^ of days counted as mills, 0.003 



$0.028 



7% the rate = J of $0.028 = $0.032f . 

 600 x $0.032 = $19.60. 



