We will now explain the method of finding the compound interest on any sum, for any time, by means of the above table.

Take from the table the interest of £1 or $1 for the same time, and at the same rate, and then multiply the number so found by the principal, and the product will be the compound interest.

EXAMPLES.

1. What will be the compound interest on $350 for three years, at 6 per cent per annum, the interest being computed annually?

Interest from the table on $1 = $0.191016;

then, $0.191016 × 350 = $66.8556.

2. What will be the compound interest on $856,95 for 15 years, at 3 per cent per annum?

3. .What will be the compound interest on $9864,05 for 16 years, the interest being computed annually, at 4 per cent? 4. What will be the compound interest on $1675,20 for 20 years, at 41 per cent, the interest being computed annually? 5. What will be the compound interest on $5463,25 for 17 years, at 5 per cent, the interest being computed annually?

6. What will be the compound interest on $3769,75 for 18 years, at 3 per cent, the interest being computed annually?

7. What will be the compound interest on £24 17s. 6d. for 10 years, at 4 per cent, the interest being computed annually?

8. What will be the compound interest on $9854,50 for 12 years, at 6 per cent, the interest being computed annually?

QUEST.-224. How do you find the compound interest on any sum by the table?

LOSS AND GAIN.

225. Loss and Gain is a rule by which merchants discover the amount lost or gained in the purchase and sale of goods. It also instructs them how much to increase or diminish the price of their goods, so as to make or lose so nuch per cent.

EXAMPLES.

1. Bought a piece of cloth containing 75yd. at $5,25 per yard, and sold it at $5,75 per yard: how much was gained in the trade?

2. A merchant bought a bale of goods containing 125 yards for $687,75, and sold it at auction for $4,50 per yard: how much did he lose in all, and how much per yard?

$687,75 =cost of the bale.

562,50 price of 125 yd. at $4,50 per yd. $125,25 = total loss.

125)$125,25(1,00,2.

Total loss $125,25.

Ans.

Loss on each yd. $1,00,2.

QUEST.-225. What is the rule of loss and gain?

2. Bought a piece of calico containing 50yd. at 2s. 6d. per yard: what must it be sold for per yard to gain £1 0s. 10d.?

3. Bought a hogshead of brandy at $1,25 per gallon, and sold it for $78: was there a loss or gain?

4. A merchant purchased 3275 bushels of wheat for which he paid $3517,10, but finding it damaged is willing to lose 10 per cent: what must it sell for per bushel?

226. In the sale of goods, knowing the per cent of gain, and the amount received, to find the principal or cost.

I sold a parcel of goods for $195,50, on which I made 15 per cent: what did they cost me?

It is evident that the cost added to 15 hundredths of the cost will be equal to what the goods brought, viz., $195,50. If we call the cost 1, then 1 plus 15% of the cost will be equal to what they bring: that is,

100

or, cost equals $195,50 x 100 ÷ 115
115 = $170.
Hence, to find the cost,

Multiply the amount by 100 and divide the product by 100 plus the per cent of gain, and the quotient will be the cost.

227. When there is a loss, we have the following method: If I sell a parcel of goods for $170, by which I lose 15 per cent, what did they cost?

It is evident that the cost, less 15 per cent, that is, less 15 hundredths of the cost, is equal to $170. Hence, 85 hun

QUEST.-226. Knowing the per cent of gain and the amount received, how do you find the cost? 227. Knowing the per cent and the amount lost, how do you find the cost?

dredths of the cost is equal to $170; and consequently, the cost is equal to

Hence, to find the cost when there is a loss,

Multiply the amount received by 100 and divide the product by the difference between 100 and the per cent lost, and the quotient will be the cost.

EXAMPLES.

1. Sold cloth at $1,25 per yard and lost 15 per cent: for what should I have sold it to have gained 12 per cent?

2. Sold cloth at $1,25 per yard and lost 15 per cent: what per cent should I have gained had I sold it at $1,647019 per yard?

3. Sold cloth at $1,647019 per yard and gained 12 per cent: for what ought I to have sold it to lose 15 per cent?

4. A bought a piece of cotton containing 80 yards, at 6 cents per yard; he sold it for 71⁄2 cents per yard: how much did he gain, and how much per cent?

5. Bought a piece of cloth containing 150 yards for $650: what must it be sold for per yard, in order to gain $300 ?

6. Bought a quantity of wine at $1,25 per gallon, but it proves to be bad and I am obliged to sell it at 15 per cent less than I gave: how much must I sell it for per gallon?

7. A farmer sells 375 bushels of corn for 75cts. per bushel: the purchaser sells it at an advance of 20 per cent: how much did he receive for the corn?

8. A merchant buys one tun of wine for which he pays $725, and wishes to sell it by the hogshead at an advance of 20 per cent: what must he charge per hogshead?

9. A merchant buys 316 yards of calico for which he pays 20 cents per yard; one-half is so damaged that he is obliged to sell it at a loss of 6 per cent; the remainder he sells at an advance of 19 per cent: how much did he gain?

10. If I buy coffee at 16 cents and sell it at 20 cents, how much do I make per cent on the money paid?

11. If I buy tea at 4s. per pound and sell it at 4s. 9d. pound, how much should I gain on a purchase of £100?

per

12. A merchant bought 650 pounds of cheese at 10 cents per pound, and sold it at 12 cents per pound: how much did he gain on the whole, and how much per cent on the money laid out?

13. Bought cloth at $2,50 per yard, which proving bad, I wish to sell it at a loss of 18 per cent: how much must I ask per yard?

14. Bought 150 gallons of molasses at 75 cents a gallon, 30 gallons of which leaked out. At what price per gallon must the remainder be sold that I may clear 10 per cent on the cost?

STOCKS AND CORPORATIONS.

228. STOCK is a general name for the money contributed by individuals for the establishment of banks and manufacturing companies, and the individuals who contribute the money are called Stockholders.

229. The individuals so associated are called, in their collective capacity, a Corporation; and the law which defines. their rights and powers, is called the Charter of the Bank or Company.

230. The amount of money paid in by the stockholders to carry on the business of the corporation, is called the Capital. The capital is generally divided into a certain number of equal parts called shares, and the written evidences of ownership of such shares, are called certificates of stock.

QUEST.-228. What is stock? What are individuals called who own the stock? 229. What are they called in their associated capacity? What is the law called which incorporates them? 230. What is the amount of money paid in by the stockholders called? How is the capital generally divided? What is the evidence of ownership called?