6. What is the cost of 8 India Bonds, of £100. each, purchased the 4th July at 2s. discount?

OMNIUM AND SCRIP.

CASE I.

TO FIND THE COST OR NET PROCEEDS OF A GIVEN QUANTITY OF OMNIUM.

RULE.

Find the amount of the instalments, to which add the brokerage upon buying, but deduct it upon selling; and if a premium has been given or received, it must also be added, but if a discount, it must be deducted.

EXAMPLE I.

What is the cost of £1400 Omnium, on which 65 has been paid, at a premium of 24 per cent?

per cent

What are the net proceeds of £5000 Omnium, on which 3 instalments, of 10 per cent each, have been paid, at a premium of 5 per cent?

The value of Scrip is ascertained by finding the amount of the quantity of stock that the Scrip receipt will entitle the possessor to have transferred to him, at the market price, and subtracting from it the amount of the instalments that remain unpaid at the price at which the stock was taken, the remainder is the present value of the Scrip, to which the brokerage is to be added upon buying, and subtracted upon selling.

The price at which any stock is taken, is marked Scrip receipt.

upon the

EXAMPLE.

What is the cost of £2000. Scrip in the Reduced, valued at 64 per cent, and sold at 66 per cent, there being 4 instalments, of 10 per cent each, remaining unpaid?

1. What is the price of £1000. Omnium, on which 25 per

cent has been paid, at a premium of 14 per cent?

2. What are the net procceds of £1000. Omnium, on which 20 per cent has been paid, at a discount of 2 per cent?

3. What is the value of £8000. Scrip, in the 4 per cents, valued at 81 per cent, and sold at 834 per cent, 6 instalments being unpaid, of 10 per cent each ?

4. What is the cost of £2000. Scrip, in the Consols, valued at 62 per cent, and sold at 634 per cent, there being 7 instalments, of 10 per cent each, unpaid?

CASE II.

TO FIND THE AMOUNT OF THE DISCOUNT UPON THE PROMPT PAYMENT OF THE INSTALMENTS, EITHER UPON OMNIUM 'OR SCRIP.

RULE.

Find the discount upon the whole amount of the instalments for the time the most distant has to run*.

EXAMPLE.

What is the amount of discount at 5 per cent, on paying 6 instalments, at 10 per cent, on 11th July, 1816, upon £2000. Omnium, the last instalment being due, on cach, 27th January, 1817.

From 11th July to 27th January is 200 days.

£2000 at 60 per cent = £1200 0 1200x200)7300 =

O Amount of Instal.
6 Disct. for 200 days

32 17

When the discount is at any other rate than 5 per cent, find it at the given rate by some of the rules already given for calculating Interest, &c.

*This is the usual mode of calculating the discount, and it exceeds the discount of 5 per cent, per annum, calculated upon each instalment separately, the difference being an inducement to early payment.

EXERCISES.

J. What is the amount of the discount at 5 per cent, upon the payment of 4 instalments, on the 18th August, of 10 per cent each, on £4000. Omnium; the last instalment being due on 26th November?

upon

2. What is the amount of the discount at 4 per cent, the payment of 6 instalments of 10 per cent each, upon £1000. Scrip in the Reduced, taken at 62 per cent, the payment being made 10th June, 1816, and the last instalment being due 20th January, 1817 P

3. What is the amount of the discount, at 5 per cent, upon the payment of 6 instalments of 10 per cent each, on 30th July, on £1000. Omnium; the last instalment being due on the 18th November?

4. What is the amount of the discount, at 4 per cent, upon the payment of 7 instalments, of 10 per cent each, on the 6th September, 1816, on £1200. Scrip in the Consols, taken at 63; the last instalment being due, 3d January, 1817 ?

For an account of the French and American funds, see Exchange, under the heads of Paris and America.

EXPLANATION OF THE FOLLOWING TABLE. 1

Suppose the 3 per cents are at 58, that is every £100. of that stock costs £58. 10s.; then by looking opposite to 584 in the first column, South Sea Stock (which bears 3 per cent) at £68. 5s.; the 4 per cents, £78.; the 5 Cent Consols, per £97. 10s.; Bank Stock, £175. 10s.; India Stock, £204. 15s.; and a sum invested in any of these securities at these prices is equal to buying land, at 19 years purchase, or 5 per cent.Again, if the 3 per cents be 581, and Bank Stock at 180, which of these is most advantageous to the purchaser? The 3 per cents at 58, bring 5 per cent, as above, and Bank Stock to yield the same interest, ought to be 1751; but Bank Stock at 180, brings only 5 per cent, as appears from the Table, so that the 3 per Cent Consols is 3 per cent cheaper than Bank Stock.

Y

A TABLE OF THE PUBLIC FUNDS.

Exhibiting, at ONE VIEW, the intrinsic value, per cent, of those securities, and the proportion they bear to each other, by which the most advantageous purchase may be known; and also what proportion such purchases bear to the value of Landed Estates and Life Annuities.