EXERCISES. 1. What is the amount of the half yearly dividend on £61. 12s. 4d. stock, in the 5 per cents? 2. What is the half yearly dividend on £573. 13s. 10 stock, in the 4 per cent Consols? 3. If £700. 13s. 4d. stock in the 3 per cents, was sold out, at 64 per cent, and the money laid out in the 4 per cents, at 81 per cent; what difference, in the net half yearly dividend, would the exchange produce? TERMINABLE ANNUITIES. CASE I. TO FIND THE COST, OR NET PROCEEDS, OF A GIVEN TERMINABLE ANNUITY. RULE. Multiply the given annuity by the number of years purchase, at which the annuity is bought or sold, to which add the brokerage, if the annuity is to be bought, but subtract it if to be sold. EXAMPLE. Required the net proceeds of a Bank Long Annuity of £500. 12s. 6d., sold at 17 years purchase. EXERCISES. 1. What is the cost of an Imperial Annuity of £300, bought at 7 years purchase? 2. What are the net proceeds of £202, 10s., Bank Long Annuity, sold at 18+ years purchase? 3. What is the cost of £150. Long Annuity, bought at 184 years purchase? CASE II. TO FIND WHAT ANNUITY MAY BE PURCHASED WITH, OR SOLD TO PRODUCE, A GIVEN SUM. RULE. As £100. plus, the brokerage of per cent, when the annuity is to be bought, or minus the brokerage, when the annuity is to be sold, is to the given sum, so is £100 to the value of the annuity*; which divide by the rate of the annuity, and the quotient is the yearly annuity. EXAMPLE. What yearly annuity, at 17 years purchase, can be bought for £1600, in the Bank Long Annuities? £ 1001 : 1600 8 * Instead of stating the above proportion, it will be sufficiently accurate, in practice, to deduct part, from the given sum, when the annuity is to be bought, and to add the same part, when it is to be sold. EXERCISES. 1. What yearly annuity, at 7 years purchase, may be bought with £1400? 2. What yearly annuity can be purchased for £200, in the Imperial Short Annuities, at 7 years purchase? EXCHEQUER BILLS, &c. CASE I. TO FIND THE INTEREST ON A GIVEN AMOUNT OF EXCHEQUER BILLS. RULE. Find the number of days, from the date of the bills, to the day they are advertised to be paid off, which, at 34d*. per day, will be the interest of £100.; and this, multiplied by the number of hundreds, will give the interest of the amount of the bills, EXAMPLE. What is the interest of 3 Exchequer Bills, of £500. each, dated the 17th Oct, 1816, and to be paid on the 17th Feb. 1817? From 17th Oct. to 17th Feb. is 123 days. 123 at 34d.=£1 15 10 3 5 7 7 5 £26 18 14 interest See page 297. The interest due upon a given amount, in India Bonds, is found in a similar manner; only it is necessary to observe, that the interest is reckoned in months and days. EXAMPLE. What interest is due, July 10th, on two India Bonds, of £100. each? From March 31st to July 10th, is 3 months and 10 days. 1. What is the interest on 4th May, 1817, of 4 Exchequer Bills, of £100. each, dated 30th July, 1816? 2. What is the interest of 2 Exchequer Bills, of £500 each, and one of £1000., on the 8th March, 1817; the bills being dated 3d October, 1816? 3. What is the interest due, on the 12th November, on 2 India Bonds, of £500. each ? CASE II. TO FIND THE COST, OR NET PROCEEDS, OF ANY GIVEN RULE. Find the interest on the given sums, and add it to the amount of the bills, to which add or subtract the brokerage, according as the bills are bought or sold; and, should the bills be bought at a premium, it must also be added, but discount deducted. EXAMPLE What is the cost of 2 Exchequer Bills, of £1000. each, bought at a premium of 2s. per cent, on the 2d January, 1817, and dated 27th October, 1816? From Oct. 27th to Jan. 2d is 67 days 20 hundreds = £2000 0 0 £1340 at 3 d. = = £19 10 10 interest 2 0 O premium 2000 at 1s. per cent 100 brokerage £2022 10 10 whole cost. The cost or net proceeds of a given amount, in India Bonds, may be found in a similar manner. The amount of a Navy Bill, drawn for a given sum, and the interest, is also found in the same manner*. EXERCISES. 1. What is the cost of 4 Exchequer Bills, of £1000. each, dated 8th Nov. 1816, and purchased the 20th February, 1817, at a premium of 4 per cent? 2. What is the cost of 6 Exchequer Bills of £100. each, 2 of £200. each, 2 of £500. each, and 1 of £1000; dated the 17th November, 1816, and purchased the 24th Feb. 1817, at a discount of 10 per cent? 3. For what amount should a Navy Bill be drawn for £677. 15s. 7d. and the interest for 90 days, at 3d. per cent, per diem? 4. For what amount should a Navy Bill be drawn to include the sum of £2000. and the interest for 90 days, at 3d. per cent, per diem? 5. What are the net proceeds of 2 India Bonds of £200. each, sold 1st March, at 2s. premium? * Navy Bills are now considered only as bills of exchange; and, of course, are not marketable at the Stock Exchange. |