5. Bought broadcloth @ $3 in gold, and sold the same @ $4 in currency. Did I gain or lose by the transaction, and how much per cent. in currency, gold being at 140 %? Ans. Lost 41 %.

6. A broker invested $3000 of gold in U. S. 6's, which were worth 102% in currency. What was his annual income from the investment, gold being at 134 %? and what the rate per cent.? Ans. to first, $236.47, gold = 71% currency. 7. A gentleman invested $10,000, current funds, in U. S. 5-20's of '85, at 104 %. What will be his annual income in currency when gold is at 137 %? Ans. $790.38.

CASE II.

To change currency into gold.

1. How much gold can be purchased for $75 current funds, gold being at 150%?

OPERATION.

$75 $1.50 :

= 50

ANALYSIS. A dollar of gold cost $1.50 in currency, therefore there can be as many dollars of gold purchased for $75 in currency as $1.50 is contained times in $75.

RULE. Divide the amount in currency by the price of gold. 2. What is the value in gold of a dollar in currency when gold is at 203 % ? Ans. $.49.

3. Gold being the standard, what is the rate of discount upon current funds when gold is at 134 %, 150 %, 175 %, 180 %, 215 %, and 398 %? Ans. to first, 25%. Ans. to last, 74173 %.

4. What is gold quoted at when a dollar in currency is worth 20 cents in gold, 30 cts., 50 cts., 15 cts., 25 cts., and 72 cts. ?

5. How many yards of cotton, at 25 cts. in gold, can be purchased for $250 current funds, when gold is at 175 % ?

Ans. 5713 yds.

6. Sold $7800 7.30 Treasury Notes, at 105 %, and invested the proceeds in gold at 145 %, with which I bought U. S. 10-40's at 60% in gold. Will my yearly income be increased or diminished by the transaction, and how much in gold? Ans. Increased $78.

7. Which is the better investment, a bond and mortgage at 7 %, or U. S. 10-40's, gold being 134; and what per cent. in gold?

PROFIT AND LOSS.

494. Profit and Loss are commercial terms, used to express the gain or loss in business transactions.

495. Gains and losses are usually estimated at some rate per cent. on the money first expended or invested. Hence

I. Profit and loss are reckoned as percentage upon the prime or first cost of the goods as the base.

II. The selling price of the goods is amount or difference, according as it is greater or less than the prime cost.

EXAMPLES FOR PRACTICE. ́.

1. A merchant bought cloth for $3.25 per yard, and gained 8 % in selling; what was the selling price?

the gain, which added to the cost gives $3.51, the selling price. Or, since the rate of gain is 8 %, that which cost $1 will bring $1.08, and the selling price will be 1.08 times the buying price. Hence $3.25 x 1.08 $3.51, the selling price..

=

2. A jobber invested $2560 in dry goods, and realized $384 net profit; what was the rate per cent. of his gain?

OPERATION.

$384 $2560 = 15 %

ANALYSIS. According to (Prob. II, 450), we divide the gain, $384, which is percent15 %, the

age, by the cost, $2560, which is the base, and obtain 15: rate of gain.

3. A produce dealer sold a shipment of wheat at a loss of 5 %,

realizing as the net proceeds, $8170;

what was the cost?

ANALYSIS. According to (Prob. V, 453), we divide the net proceeds, $8170, which is difference, (448), by 1

minus the rate of loss, or .95, and obtain the base, or prime cost, $8600.

4. A merchant pays $7650 for a stock of spring goods; if he sell at an advance of 20 % upon the purchase price, what will be his profits, after deducting $480 for expenses? Ans. $1050.

5. Bought 320 yards of calico @ 15 cents, and sold it at a reduction of 2%; what was the entire loss?

6. A dealer having bought 30 barrels of apples at $3.50 per barrel, and shipped them at an expense of $5.38, to be sold on commission of 5 %, what will be his whole loss if the selling price is 10% below the purchase price? Ans. $20.60.

7. Bought corn at $.50 a bushel; at what price must it be sold to gain 33 per cent. ?

602

8. Bought fish at $4.25 per quintal, and sold the same at $4.93; what was my gain per cent.? Ans. 16 %.

9. Bought a hogshead of sugar containing 9 cwt. 44 lb., for $59; paid $4.72 for freight and cartage; at what price per pound must it be sold to gain 20 per cent. on the buying price?

10. A wine merchant bought a hogshead of wine for $157.50; a part having leaked out he sold the remainder for $3.32 a gallon, and found his loss to be 5 per cent. on the cost; how many gallons

leaked out?

Ans. 18.

11. Sold a farm of 106 A. 3 R. 30 P. for $96 an acre, and gained 18 per cent. on the cost; how much did the whole farm cost? Ans. $8700.

12. A lumberman sold 36840 feet of lumber at $21.12 per M, and gained 28 per cent. ; how much would he have gained or lost, had he sold it at $17 per M? Ans. $18.42, gained.

13. A speculator bought shares in a mining company when the stock was 4% below par, and sold the same when it was 28 % below par; what per cent. did he lose on his investment?

14. A machinist sold a fire engine for $7050, and lost 6 per cent. on its cost; for how much ought he to have sold it to gain 12 per cent.? Ans. $8437.50.

15. Sold my carriage at 30 per cent. gain, and with the money bought another, which I sold for $182, and lost 12 per cent.; how much did each carriage cost me?

Ans.

First, $160;
Second, $208.

16. Gaffney Burke & Co. bought a quantity of dry goods for $6840; they sold of them at 15 per cent. profit, at 18 per cent., at 20 per cent., and the remainder at 33 per cent. profit; how much was the average gain per cent., and how much the whole gain? Ans. 21 % gain; $1482, entire gain. 17. If I buy a piece of land, and it increases in value each year at the rate of 50 per cent. on the value of the previous year, for 4 years, and then is worth $12000, how much did it cost?

18. A Western merchant bought wheat as follows: 600 bushels of red Southern @ $1.80, 1200 bushels of white Michigan @ $1.62, and 200 bushels of Chicago spring, @ $1.25. He shipped the whole to his correspondent in Buffalo, who sold the first two kinds at an advance of 20 % in the price, and the balance at $1.20 per bushel, and deducting from the gross avails his commission at 5 %, and $254.60 for expenses, returned to the consignor the net proceeds. What was the rate of the merchant's gain? Ans. 4%.

19. A broker buys stock when it is 20 % below par, and sells it when it is 16% below par; what is his rate of gain?

20. A man has 5 per cent. stock the market value of which is 78 %; if he sells it, and takes in exchange 6 % stock at 4 % premium, what per cent. of his annual income does he lose? /

21. A machinist sold 24 grain-drills for $125 each. On one half of them he gained 25 per cent., and on the remainder he lost 25 per cent.; did he gain or lose on the whole and how much? Ans. Lost $200.

22. Bought land at $30 an acre; how much must I ask an acre, that I may abate 25 per cent. from my asking price, and still make 20 per cent. on the purchase money? Ans. $48.

23. A salesman asked an advance of 20 per cent. on the cost of some goods, but was obliged to sell at 20 per cent. less than his asking price; did he gain or lose, and how much per cent.?

24. A Southern merchant ships to his agent in Boston, a quantity of sugar consisting of 200 bbl. of New Orleans, each containing 216 lb., purchased at 5 cents per pound, and 560 bbl. of West India, each containing 200 lb., purchased at 5 cents per pound.

23

The agent's account of sales shows a loss of 1 % on the New Orleans, and a profit of 29% on the West India sugar; does the merchant gain or lose on the whole consignment, and what per cent.? Ans. Gains%.

25. A grocer sold a hogshead of molasses for $31.50, which was a reduction of 30 % from the prime cost; what was the purchase price paid per gallon?

26. A speculator sold stock at a discount of 73 %, and made a profit of 5%; at what rate of discount had he purchased the stock? Ans. 12 %.

27. A dry-goods merchant sells delaines for 2 more than they cost, and realizes a profit of 8 %; cost per yard?

cents per yard

what was the Ans. $.311.

28. If I make a profit of 183 % by selling broadcloth for $.75 per yard above cost, how much must I advance on this price to realize a profit of 314 %?

29. A speculator gained 30 % on g of his investment, and lost 5% on the remainder, and his net profits were $720. What would have been his profits, had he gained 30 % on and lost 5% on the remainder? Ans. $405.

30. A man wishing to sell his real estate asked 36 per cent. more than it cost him, but he finally sold it for 16 per cent. less than his asking price. He gained by the transaction $740.48. How much did the estate cost him, what was his asking price, and for how much did he sell it?

Ans. Cost, $5200; asking price, $7072; sold for $5940.48. 31. Sold of a barrel of beef for what the whole barrel cost; what per cent. did I gain on the part sold? 4/6

32. Bought 4 hogsheads of molasses, each containing 84 gallons, at $.37 a gallon, and paid $7.50 for freight and cartage. Allowing 5 per cent. for leakage and waste, 4 per cent. of the sales for bad debts, and 1 per cent. of the remainder for collecting, for how much per gallon must I sell it to make a net gain of 25 per cent. on the whole cost? Ans. $.55+.