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, und 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 u, 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?

803. 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 percentage, when the premium is insured as well as the base. The base insured is then the premium plus the first base.

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

Examples.

1. What would be the premium for insuring a ship and cargo, valued at $147674, at 3 per cent.?

2. What would be the insurance

on a ship, valued at $47520, at of 1 per cent.? At of 1 per cent.?

3. What would be the insurance on a house, valued at

16800, at 1 per cent.? At

of 1 per cent.?

4. A merchant owns of of a ship, valued at $24000, and insures his interest at 2 per cent.: what does he pay for his policy?

5. What will it cost to insure a store, worth $5640, at { per cent., and the stock, worth $7560, at per cent.?

6. A carriage-maker shipped 15 carriages, worth $425 each : what must he pay to obtain an insurance upon them at 75 cents on a hundred dollars?

7. A merchant imported 150 hhd. of molasses, at 35 cents a gallon; he gets it insured for 3 per cent. on the selling price of 50 cents a gallon: if the whole should be destroyed, and he get the amount of insurance, how much would he gain?

8. If I get my house and furniture, valued at $3640, insured at 4 per cent., what would be my actual loss if they were destroyed?

9. The ship Astoria was valued at $20450, and her cargo at $25600, and was bound on a voyage from New York to Canton. The vessel was insured at the St. Nicholas office for $12000, at 2 per cent., and the cargo for $18500, at 31 per cent. The vessel foundered at sea: what was the entire loss of the owner?

10. Shipped from New York to the Crimea, 5000 barrels of

305. To how many classes is insurance limited? What are they? -306. What is mutual insurance?-307. What is the policy?—308. What is premium?-309. How many cases are there of insurance! What are they?