112 



BUSINESS PEOBLEMS 



EXERCISE 



1. Reducing the time expressed in months to days, using 

 the Day Method, find the interest at 6% on the following : 



2. The following notes were made to the Berea Bank & 

 Trust Co., Berea, Ky. Find the date when they are due. 

 Using the Six Per Cent Method, find the bank discount and 

 the proceeds. 



134. Since banks take the interest in advance, the maker 

 of a note in order to realize a definite sum of money must 

 give his note for a larger amount of money than the sum to 

 be realized. 



EXAMPLE. For what sum must I give my note to a bank for 60 da., 

 with interest at 6%, that I may receive from the bank $99 ? 



SOLUTION. Since banks take the interest in advance, the interest 

 on each $1 borrowed for 60 da. at 6%, which is 1<, is taken out of 

 every dollar. Thus, the borrower realizes only 99< on each dollar on 



