738. 1. Find the cash balance of the following account on the 22d of August, allowing interest at 6%:

OPERATION.-By averaging the account, the equated time for paying the balance, $1100, is found to be Nov. 4. (734.)

True present worth of $1100 for 74 da. (from Aug. 22 to Nov. 4) is $1086.60, or cash balance Aug. 22.

Or, by Interest Method, as follows:

Dr.

Int. of $600, from June 15 to Aug. 22, 68 da.,

66

$6.71 (574.)

700,

66

300,

400,

Int. of $1000, from Aug. 22 to Nov. 10, 80 da.,

May 10" Aug. 22, 104 da.,

$13.15

5.13

July 1"

$13.38

$1100 $13.38 $1086.62, Cash Balance, Aug. 22.

ANALYSIS.-Charge Hammond with interest on each debit item from the time it is due to date of settlement, and credit him with interest on each sum paid from the date of payment to date of settlement, also on each debit item which becomes due after the date of settlement. Hence, he is entitled to interest on $1000 from Aug. 22 to Nov. 10. As the balance of interest is in favor of Hammond, it must be deducted from the balance of the account, to obtain the cash balance. There is a slight difference in the results, but the interest method is the more accurate. By the use of Interest Tables, it is also the shorter of the two methods.

RULE 1.—I. Average the account, and find the equated time of payment of the balance.

II. If the date of settlement is prior to the equated time, find the present worth of the balance of account for the cash balance; if later, find the interest of the balance of account for the intervening time, and add it to find the cash balance. Or,

RULE 2.-Find the interest on each debit and credit item, from the time it is due or paid to the date of settlement, placing on the same side of the account the interest on each item due prior to the date of settlement, and on the opposite side the interest on each item due after the date of settlement. If the balance of interest is on the same side as the balance of the account, add it, if on the other side subtract it; and the result will be the cash balance at the date of settlement.

2. I owe $1500 due May 1, and $750 due Aug. 15. If I give my note at 30 da. for $450, June 1, and pay $370 in cash July 15, what is the equated time for paying the balance; and what would be due in cash Dec. 10, allowing interest at 7%?

3. When is the balance of the following account due per average ?

4. What is the cash balance of the above account Jan. 1,

1876, allowing interest at 10%?

5. Find the equated time, and cash balance July 1, of the following, allowing 7% interest:

6. Average the following account, and find for what amount a note at 60 days should be given Aug. 1, to pay the balance, interest at 6%.

739. 1. Average the following Account Sales, and find when the net proceeds are due. (543.)

Account Sales of 1200 bbls. of flour received from Smith, Tyler & Co., Cincinnati.

Average of sales, found by the method of Equation of Payments, Oct. 1, which is the date at which the commission is due.

Average of charges, including commission (Oct. 1), May 22. Equated time of $7215 due Oct. 1, and $1065.34 due May 22, Oct. 21, date when the net proceeds are due.

RULE.-I. Average the sales alone, and the result will be the date to be given to the commission and guaranty. II. Make the sales the credits and the charges the debits, and find the equated time for paying the balance.

2. Make an account sales, and find the net proceeds and the time the balance is due :

Wm. Brown, of N. York, sold on acct. of J. Berry, of Chicago, June 1, 350 bu. Winter Wheat, @ $1.35, at 60 da.; June 15, 275 bu. Spring Wheat, @ $1.75, at 90 da.; July 3, 1260 bu. Indian Corn, @ $.79, at 6 mo.; and July 10, 375 bu. Rye, @ $1.02, at 3 mo. Paid freight, May 28, $567.50; cartage, May 30, $22.50; insurance, June 5, $56.25; and charged com. at 31%, and 13% for guaranty.

3. Sold on account of Brown, Sampson & Co., at 6 mo. Oct. 1, 1874, 13 hhd. sugar, averaging 1520 lb., @ $.12; Oct. 5, 15 chests Hyson Tea, each 95 lb., @ $1.05. Paid charges: Oct. 3, Insurance, $85; Oct. 10, Cooperage, etc., $24.50; Oct. 20, Cartage, $125. Charged commission and guaranty, 44%. Make an account sales, and find the equated time for paying the net proceeds.

740.

21. EXCHANGE.

SYNOPSIS FOR REVIEW.

1. Defs.

1. Exchange. 2. Domestic Exchange. 3. For-
eign Exchange. 4. Bill of Exchange. 5.
Set of Exchange. 6. Sight Draft or Bill.
7. Time Draft or Bill. 8. Buyer or Re-
mitter. 9. Acceptance. 10. Par of Exchange.
11. Course or Rate of Exchange.

2. Forms. 1. A Sight Draft. 2. Set of Exchange.
3. Inland § 1. 700.

Exch. 2.701.

To find

Cost of Draft. Formula.
Face of Draft.

1. Money of Account.

2. Sterling Bills, or Exchange.

2. Exchange with Europe-how effected.

3. 706.

{

Cost of Bill.

Face of Bill.

1. Arbitration of Exchange.

2. Simple Arbitration.

3. Compound Arbitration.

2. Rule, I, II, III, IV.

1. Defs.

1. Custom House. 2. Port of Entry. 3. Collector. 4. Clearance. 5. Manifest. 6. Duties or Customs. 7. Tariff. 8. Specific Duty. 9. Ad Valorem Duty. 10. Gross Wight. 11. Net Weight

2. 726. To find the Duty.

1. Defs.

1. Equation of Payments. 2.
Equated Time. 3. Term of
Credit. 4. Average Term of
Credit.

2. Principle.

3. 733.

4. 734.

Rule, I, II.

Rule, I, II, III. Proof.

1. Defs. 1. Account. 2. To Average an Acct.

Rule 1, I, II, III. Rule 2.

24. AVERAGING
ACCOUNTS.

2. 737.

PERCENTAGE-CONTINUED.