The above table shows the rates at which they insure the amount of $100 for 1 year, for 7 years, or for life. It should be observed, that when a person insures for 7 years or for life, he pays annually the premium set opposite the age. Having found the premiun for $100, it is easily found for any other amount, by simply multiplying by the amount and dividing by 100. EXAMPLES. 1. What will be the premium per annum on the insurance of a life for 7 years, for $4500, the person being at the age of 40 years, in the New York or Philadelphia companies? Premium per annum for 7 years on $100 = 1,83; then, 1,83 × 4500 ÷ 100 100 = 82,35: hence, $82,35 is the premium per annum. 2. What would be the premium per year if insured for life? 3. A person at 21 wishes to insure at his death $8500 to his friends how much must he pay per annum to insure that amount at his death, in the Boston Company? : ENDOWMENTS AND ANNUITIES. 272. AN ENDOWMENT is a certain sum to be paid at the expiration of a given time, in case the person on whose life it is taken shall live till the expiration of the time named. 273. ANNUITIES are certain annual or periodical payments made to individuals by incorporated companies or associations, for a given sum paid in hand. 274. The following table shows the value of an endowment purchased for $100, at the several periods mentioned on the column of ages, the endowment to be paid if the person attains the age of 21 years. 273. What is an annuity" QUEST.-272. What is an endowment? 274. What does the table of endowments show? 275. The following table exhibits the sums which must be paid, at the several ages named, to purchase an annuity of $100 a year in the Massachusetts Life Insurance Co., and in the Girard Life Insurance, Annuity, and Trust Company, Philadelphia. 1. What sum at birth will purchase an endowment at 21 of $859,61 ? 2. What sum at the age of 30 years will purchase an annuity of $3150? QUEST.-275. What does the table of annnities show? COINS AND CURRENCIES. 276. COINS are pieces of metal, of gold, silver, or copper, of fixed values, and impressed with a public stamp prescribed by the country where they are made. These are called specie, and are generally declared to be a legal tender in payment of debts. The Constitution of the United States provides, that gold and silver only shall be a legal tender. The coins of a country and those of foreign countries having a fixed value established by law, together with bank notes redeemable in specie, make up what is called the Currency. 277. A foreign coin may be said to have four values: 1st. The intrinsic value, which is determined by the amount of pure metal which it contains. 2d. The custom house or legal value, which is fixed by law. 3d. The mercantile value, which is the amount it will sell for in open market. 4th. The exchange value, which is the value assigned to it in buying and selling bills of exchange between one country and another. Let us take, as an example, the English pound sterling, which is represented by the gold sovereign. Its intrinsic value, as determined at the Mint in Philadelphia, compared with our gold eagle, is $4,861. Its legal or custom house value is $4,84. Its commercial value, that is, what it will bring in Wall street, New York, varies from $4,83 to $4,86, seldom reaching either the lowest or highest limit. The QUEST.-276. What are coins? What are they called? What is declared in regard to them? What is provided by the Constitution of the United States? What do you understand by Currency? 277. How many values may a coin be said to have? What is the intrinsic value? What is the mercantile value? What is the exchange value? exchange value of the English pound, is $4,444, and was the legal value before the change in our standard. This change raised the legal value of the pound to $4,84, but merchants and dealers in exchange preferred to retain the old value, which became nominal, and to add the difference in the form of a premium on exchange, which is explained in Art. 292. Pound of Nova Scotia, New Brunswick, Newfoundland, and Canada. QUEST.--Give the different values of the English sovereign. How came the value of the sovereign to be altered? How is the difference now made up? |