22 Q. What is Practice ? A. It is a contraction of the Rule of Three Direct, when the first term happens to be an unit, or one, and has its name from its frequent use in business. Q. What is interest? A. It is a compensation made by the bor- rower of any sum of money to the lender, according to a certain rate per cent. How do you distinguish the different terms used in this rule ? A. The money lent is called Principal.— The sum per cent, agreed on, is called Rate: The Principal and Interest added together are called Amount. Q. Wherein do Simple and Compound Interest differ ? A. In Simple Interest we pay only for the use of .the Principal; in Compound we pay for the Interest as~ well as the Principal, as soon as it becomes due.
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