114 BUSINESS PROBLEMS 



EXERCISE 



1. Mr. Summers discounted the following note at the 

 Greene Co. National Bank at Greeneville, Tenn., Novem- 

 ber 1, 1913, at 6%. What did he realize on the sale? 



$850. TUSCULUM, TENN., Oct. 6, 1913 



Sixty days after date, for value received, I promise to pay 

 Joseph Summers, or order, Eight Hundred Fifty Dollars, 

 with interest at 6%. CAEL w LQWEY 



2. Mr. Rudder discounted the following note at the Lon- 

 don National Bank at London, Ky., April 12, 1913, at 6%. 

 What did he realize on the sale ? 



$235. LONDON, KY., Jan. 8, 1913 



Four months after date, for value received. I promise to 

 pay Roscoe Eudder, or order, Two Hundred Thirty-five 

 Dollars, with interest at 6%. JoE E ElDDLE 



PAYING CASH FOR GOODS 



136. Paying cash for goods should enable the purchaser 

 to buy his goods cheaper first, because the merchant has 

 his cash to use in business or to put at interest ; second, 

 because the merchant who sells for cash only has 110 bad 

 debts to lose ; third, because the merchant who does a credit 

 business collects his bad debts from those who pay their bills. 



EXAMPLE. A farmer bought goods at a credit store to the amount 

 of $77.25 on 6 mo. time. What was the cash value of the goods, money 

 being worth 6% ? 



SOLUTION. $1 at 6% for 6 mo. will amount to $1.03. Thus, a debt 

 of $1.03 due in 6 mo. is worth at present only $1. Then the cash value 

 of $77.25 due in 6 mo. without interest is worth as much as $1.03 is 

 contained times in $77.25. The cash value is $75. 



