PROFIT AND LOSS.

305. Profit and Loss, as a commercial term, signifies the gain or loss in business transactions.

The cost is the base.

The profit, or loss, is the percentage.

306. Oral Exercises.

77. If I buy a knife for $0.50 and sell it at a loss of 10%, how much do I lose, and how much do I get for it?

78. If I sell a horse for which I paid $ 150 so as to gain 6 %, how much shall I get for him?

79. If I pay $0.20 a kilo for sugar, at what price must I sell to gain 15 % ?

80. If I buy boots at $ 4 a pair and sell for $ 5, what per cent shall I gain?

(What per cent is $1 of $-4?)

81. If I buy boots at $5 a pair and sell at $ 4, what per cent do I lose?

82. Sold wheat at $1.50 a bushel, gaining 25 %; what did it cost?

($1.50 is 125, or 5, of what?)

83. If I lose 10% by selling apples at $1.80 a barrel, what did I pay?

84. If I lose 20% by selling 25 kilos of sugar for $ 4, what was the cost a kilo?

85. If I sell 10 shares of railroad stock for $1090 and gain 9% on the cost, what was the cost?

86. A custom-made coat, failing to suit the customer for whom it was made, was sold at cost, $27, which was 10% below the custom price; what was the custom price?

($ 27 is 0.90, or 1%, of what?)

87. Bought a piece of broadcloth at $5 a meter, but, it being afterwards damaged, I sold it 25 % below the marked price, and thus lost 20 % on the cost. What was the marked price?

88. Paid $4 a pair for a case of boots; on one pair that was damaged I fell 10 % from the marked price and yet made 12 % on the cost. What was the marked price?

89. Paid $8 each for a case of bonnets; to close out the case, I sold the last 3 bonnets 16% below the marked price and yet made 5 % on the cost. What was the marked price?

90. What per cent do I gain if I buy boots at $ 3 a pair and sell them at $3.37?

91. Paid $3 a meter for a piece of lace; but, the lace getting injured, I fell 10 % from the marked price and yet gained 20 % on the cost. What was the marked price?

92. Bought hats at $ 3 apiece and sold them at $2.50; what per cent on the cost was lost ?

93. Sold a watch for $42 and lost 12% on the cost; what was the cost?

307. Written Exercises.

94. If I pay $87.50 for a horse and sell it at an advance of 12%, what shall I receive for it?

95. If flour that cost $7.75 a barrel is sold for $8.50, what is the gain per cent?

96. If Mr. James buys a farm for $2576 and sells it for $2485.84, what per cent does he lose?

97. If 18% is lost on a horse for which $ 205 was received, what did the horse cost?

98. Bought 164 meters of broadcloth and 287 meters of cassimere for $1107; sold the broadcloth at $ 3 and the cassimere at $2.25 a meter; did I gain or lose? How much per cent?

99. Bought 50 pounds of wool for $20 and sold it at 34 cents a pound; did I gain or lose? How much per cent ?

100. Bought goods for $2000 and sold them for $2155, out of which paid $95 for storage, etc.; how much per cent on the cost was gained?

101. Bought a farm for $4848; for what shall I sell it to gain 5% ?

102. Bought a house for $3500, expended $750 in repairing it, and then sold it so as to lose 15 % on the whole cost; what did I receive for it?

103. Sold 6 yards of cloth for $26.88 and gained 12 % on the cost; what was the purchase price a yard?

104. Sold flour at $7 a barrel and thereby gained 12 %; what per cent should I have gained if I had sold it at $7.25?

(First find the cost.)

105. Sold beef at $0.06 a pound and thereby lost 4%; should I have gained or lost, and how much per cent, had I sold it at $ 0.061?

106. Sold a watch for $21 and gained 5% on the cost; had I sold it for $18, should I have gained or lost, and how much per cent?

107. Bought a case of watches at $23.50 each; finding one of the watches damaged, I abated 6 % from the selling price, and yet sold it at cost. What was my selling price?

108. Bought 75 pounds of tea for $37.50, and sold of it at 48 cents a pound and the remainder at 56 cents a pound; did I gain or lose? How much per cent?

109. Sold flour at $ 7.50 a barrel and lost 64 % on the cost; for what should it be sold to gain 12% ?

110. Sold cloth at $ 2 a yard and lost 10%; should I have gained or lost, and how much per cent, if I had sold it at $2.12 ?

111. If I buy tea at the rate of 7 pounds for $5 and sell it at the rate of 5 pounds for $7, what per cent do I gain?

112. If a merchant buys a hogshead of molasses containing 75 gallons for $0.50 a gallon and loses by leakage 15 gallons, what per cent on the cost per gallon must he gain in order to get back the first cost of the molasses?

113. If I sell a pair of oxen for $175 and gain 5 %, What would be my gain per cent if I had sold them for $200 ?

114. If a merchant sells flour at $8.50 a barrel and gains 10 %, what per cent would he gain if he sold the flour at $9.50 a barrel?

115. If I sold my farm for $5000 and made 25 %, what per cent should I have gained, or lost, if I had sold it for $ 3500?

116. If a merchant sells goods at retail 15 % above cost, and at wholesale for 8% less than the retail price, what per cent does he gain on the goods sold at wholesale?

117. If Mr. Fox buys one fifth of an acre of land for $2178, for how much a square foot must he sell it to gain 20% ?

118. If I sell from an acre of land a rectangular lot 363 feet long and 75 feet wide for what the whole acre cost me, what per cent do I gain on the part sold?

INSURANCE.

308. Insurance is a contract of indemnity against loss.

309. The Premium is the sum paid for the insurance, and is usually computed at a certain per cent on the sum insured.

310. The Policy is the writing or record of the contract given by the insurer to the insured.

The sum insured is the base.

The premium is the percentage.

311. Written Exercises.

119. What is the cost of insuring $2500 on my house for 5 years at 2%, including $1 to pay for the policy?

OPERATION.

$2500 × 0.02 = $50, Premium.

1, Policy. $51, Ans.

120. What is the annual premium for insuring a manufacturing establishment in the sum of $75000 at 3 %? Ans. $2250. 121. In a certain house the furniture, worth $2400, is insured for its value at 13 %; what is the premium?

122. The Middlesex Mutual Fire Insurance Company have insured $4000 on my house for a period of 5 years, at 13 % ; what is the cost, including $1 to pay for the policy?

123. I buy a house for $ 8000, and get it insured for of its value at %. If the house is burned, what is my loss? What is the loss of the insurers?

124. What is the premium, at 5%, for insuring $75000 on a steamboat and cargo from Boston to Havre?

125. A cotton factory worth $25000, and the machinery and stock worth $35000, are insured for their value at 3 %; what is the premium?

126. A man 25 years of age has his life insured for $6000 at $19.85 on $1000 annually; what annual premium does he pay?

127. A man 30 years of age took out a life policy for $8500 at $22.70 on $1000 annually: he died at the age of 60; how much greater was the amount insured than the sum of the annual premiums ?

128. If a man 35 years of age takes out a life policy for $ 5000 at $26.40 on $ 1000, and dies at the age of 90, how much greater is the sum of the annual premiums than the amount insured?