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Methods in Written Arithmetic: (English)

Methods in Written Arithmetic: (English)

          
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About the Book

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1883. Excerpt: ... CHAPTER XXIII. EQUATION OF PAYMENTS. The Equation of Payments is the process of find' ing a time at which several sums due at different times, and not bearing interest, can be paid, without loss to debtor or creditor, and without the transfer of money for interest. If the several sums bear interest all could be paid at any time by discharging principal and accrued interest, and no one would lose. The principle upon which the operations are based is very simple: If money is paid before it is due interest should be allowed upon it: if not paid until after it is due it should bear interest from maturity until date of payment. PROBLEM. "I owe $500, due in four months; $6oo, due in seven months, and $1000 due in nine months; what is the average term of credit?" These sums do not bear interest until after maturity. If I should pay any one of them in full before its maturity I should lose the use of it for the given time. If I should not pay at maturity the creditor would be the loser. I first experiment a little. Suppose I should pay them in full to-day; assuming money to be worth six per cent., what should I lose? On the first I should lose the interest for four months, or $10; on the second $21, and on the third $45. This is obviously true, for if I had the money in hand I could lend the different amounts for the several periods and realize the $76 as interest before the maturity of the debts. If I pay the debts to-day I shall pay out $2100. If I retain this sum until it earns me $76 at six per cent. and then pay it to my creditor, neither will lose. The interest on $2100 for one day at 6 per cent, is 35 cents. I should retain it as many days as $67 is times z- cents. It is not very material what day I select with which to make the "experiment." Select t...


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Product Details
  • ISBN-13: 9780217184489
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 32
  • Series Title: English
  • Weight: 77 gr
  • ISBN-10: 0217184480
  • Publisher Date: 06 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Spine Width: 2 mm
  • Width: 189 mm

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