5. The par value of 257 shares of bank-stock is $200 a share what is the present value of all the shares, the stock being at a premium of 15 per cent.?

6. What is the value of 120 stock, it being at a premium of value being $150 a share?

7. What will be the cost of 69 stock, at a discount of 8%, the brokerage per cent.?

shares of Exchange Bank 183 per cent., and the par

shares of Panama Railroad par value being $125, and

8. Gilbert & Co. buy for Mr. A, 200 shares of United States stock, at a premium of 6 per cent., and charge per cent. brokerage: if the shares are $1000 each, how much money does A pay for the stock?

9. Mr. B. bought 125 shares of stock in the American Guano Company, at par, the shares being $20 each. At the end of 4 months, he received a dividend of 5 per cent., and at the end of 10 months, a second dividend of 4 per cent. At the end of the year, he sold his stock at a premium of 10 per cent. how much did he make by the operation, reckoning the interest of money at 7 per cent.?

300. To find how much stock, at par value, a given sum of money will purchase, when the stock is at a premium or discount.

1. What value of stock, at par, can be purchased by $3045.38, if the stock is at a premium of 10 per cent., and per cent. is charged for brokerage?

ANALYSIS.-When the stock is above par, the amount and the rate are given to find the base (Art. 267); when below par, the difference and rate are given to find the base (Art. 267).

2. A person wishes to invest $3000 in bank-stock, which is at a discount of 15 per cent.: what amount at par can he purchase?

300. How do you find how much stock, at par, a given sum of money will buy when the stock is at a premium? How when it is at a discount?

3. How many shares of Galena and Chicago Railroad stock can be bought for $6384, at 14% premium?

4. When bank-stock sells at a discount of 7%, what amount of stock, at par value, will $3700 buy?

5. A person has $7000, which he wishes to invest; what will it purchase in 5 per cent. stocks, at a discount of 3 per cent., if he pays per cent. brokerage?

6 How much 6 per cent. stock, at par, can be purchased for $8700, at 8 per cent. premium,per cent being paid for brokerage?

7. A person owning $12000 in government funds, desires to purchase stock in the American Exchange Bank. The funds are at a discount of 3 per cent., while the bank-stock is at a premium of 10 per cent.: what amount of stock, at par value, can he purchase, allowing the broker's charges for the purchase to be per cent.?

301. To find the rate of interest on an investment in stock, when the stock is above or below par.

1. What is the rate of interest on an investment in 6 per cent. stocks, when they are at a discount of 25 per cent.?

of $1 of the stock multiplied by its rate of interest.

Rule.-Multiply $1 of the stock by its rate of interest, and divide the product by the market value of $1 of the stock: the quotient will be the rate of interest on the investment.

2. If I buy 7 per cent. stock at 12 per cent discount, what is the rate per cent. on the investment?

3. If the stock of the Erie Railroad sells at 62 per cent., and pays semi-annual dividends of 2 per cent., what would be the rate of interest on an investment?

4. The bonds of the Illinois Central Railroad Company, which bear interest of 7 per cent., are worth 87 per cent., and the charge for brokerage is per cent.: what would be the interest on an investment in these funds?

5. The stock of the Hartford and New Haven Railroad is at a premium of 20 per cent.: reckoning the interest on money at 6 per cent., what will be the interest on an investment?

302. To find how much a stock must be above or below par, to produce a given rate of interest.

1. At what rate must a 6 per cent. stock be bought, so that the investment shall yield 9% interest?

Rule.-I. Multiply $1 of the stock by its rate of interest, and divide the product by the rate of interest on the investment: the quotient will be the per cent. of the market value of $1 of the stock:

II. If the market value is greater than 1, subtract 1 from it, and the remainder will be the per cent. of premium; if less than 1, subtract it from 1, and the remainder will be the per cent. of discount.

301. How do you find the rate of interest on an investment when the stock is above or below par?-302. How do you find how much a stock must be above or below par, to produce a given rate of interest?

2. At what rate of discount must I invest in 8 per cent. stock, in order to yield me 10 per cent.?

3. If the par value of a stock is $100, and the interest 7 per cent., what is the discount when an investment yields 12 per cent.?

4. At what rate must I invest in a 9% stock, that I may receive 8 per cent. on my investment?

303. Which is the best investment?

1. I invest $1250 in State stocks bearing an interest of 6 per cent., and a premium of 15 per cent. I invest an equal amount in State fives at 12 per cent. discount. Which will yield the larger interest?

ANALYSIS. Find the rate of interest of each investment, and then compare the two rates. That investment which produces the greater rate is the more advantageous.

The second investment is the more advantageous.

2. Which is the better investment, to buy sixes at par, or sevens at 107?

3. Which will yield the larger profit, 8 per cent. stock at a premium of 20 per cent., or 5 per cent. stock at 80 per cent.?

4. If I invest $2000 in State stocks at 5 per cent., at par, and an equal amount at 6 per cent., at 90, what will be the difference of the proceeds of the investments at the end of 5 years?

303. How do you determine which is the best investment?

INSURANCE.

304. AN INSURANCE COMPANY is a company chartered to insure against risks.

INSURANCE is an indemnity for loss or injury. It is made by companies or individuals, in consideration of a certain sum paid. UNDERWRITERS or INSURERS are the companies or persons who

insure.

305. INSURANCE is now limited, chiefly, to three classes of

cases:

1. FIRE INSURANCE, or insurance against loss by fire. 2. MARINE INSURANCE, or insurance against loss by water. 3. LIFE INSURANCE, or insurance against loss by death.

306. A MUTUAL INSURANCE is one in which the insured share in the profits.

307. A POLICY is the mutual agreement of the parties.

308. PREMIUM is the percentage paid by him who owns the property to him who insures it, as a compensation for risk.

309. All the cases of insurance are simple applications of the principles of percentage. There are four :

1. To find the premium, when the base and rate are known (Art. 259).

2. To find the rate, when the base and premium are known (Art. 261).

3. To find the base, when the rate and premium are known (Art. 262).

4. To find the well as the base. the first base.

percentage, when the premium is insured as The base insured is then the premium plus

304. What is an insurance company? What is insurance? Who are underwriters?