Education

1860

Method of Computing Interest

New and Abridged Method of Computing Interest by one simple Multiplication.-RULE- -To find the interest on any given sum
of money for any number of years, months or days. Reduce the
years to months, add in the months if any, take one-third of the
days and set to the right of the months, in decimal form, multiply this result by one half the principal and you have the interest required.

EXAMPLE.-The interest required on $1,400 for 2 years, 3 months, and 9 days:
Interest on $1,400 for 2 years, 3 months, and 9 days
27.3
700
Answer required, $191,10,0

The above example at 6 per cent. Rule to obtain the interest
at any other rate. For 7 per cent. increase the interest at 6 per
cent. by 1-6, for 8 per cent. by 1-3, for 9 per cent. by 1-2, for 10
per cent. by 2-3, for 11 per cent. by 5-6, for 12 per cent. multiply by 2. 12 per cent. is the highest rate of interest allowed by
any State, except Minnesota.
In pointing off, persons will observe to point off as many figures in the product or answer as there are decimal points in the
multiplicand, and two figures for cents. Or

2d. Multiply the amount by the number of days (counting 30
days to each month.)
Divided by 60 gives the interest at 6 per cent.
Do. 45 " " 8 "
Do. 40 " " 9 “
Do. 36 " " 10"
Do. 30 " " 12”
[EXAMPLE-$150 at 3 months and 10 days, or 100 days, is
15000 divided by 60 gives $2,50, which is the interest at 6 per
cent.: or divided by 45 gives $3,33 interest at 8 per cent., &c.