What is the cost of a long annuity for 1201 at 20 years purchase? What is the net proceeds of 2 Indian Bonds of 5001. each, sold on 20th May, at 46s. premium? What is the cost of 1,000l. omnium at a premium of 21. pea cent., on which 50 per cent. has been paid? 50 + 2 + 1 = 52}, then 52 × 10 = 5211. 5s. 705. EXAMPLES. What is the cost of 1,3421. 3 per cent. Cons., at 91 per cent.? What is the net proceeds of 1,100). 3 per cent. Red., at 90} per cent. ? Bought 3001. stock in the 3 per cent. Cons. 631., and sold out at 67%, what sum was gained thereby ? How much stock at 843 will 7241. purchase? What will be the half-yearly dividend on 5,6001. 31 per cent. stock? What rate of interest arises from money vested in 3 per cent. Cons., at 644.? Find the amount of purchase of 5 Exchequer Bills for 1001. each, at 31s. per cent. premium, bought 60 days after date, bearing interest at 2d. per diem. What is the selling price of 4 Exchequer Bills for 2001. each, bearing interest at 1d. per diem, at a premium of 24s. per cent., sold 28 days after date. 706. QUESTIONS FOR EXAMINATION UNDER CHAP. 25. 1. What are Commission and Brokerage ? 2. What are Stock Brokers? 3. What are the Public Funds? What is meant by Dividends? 4. Where is the business of buying and selling in the Public Funds transacted? By whom is it transacted? 5. How did the Public Funds originate? How are loans negotiated? 6. What other Stocks are there besides the Government Stocks? 7. What is Omnium? What is Scrip? What are Consols? What is Reduced Stock? What are Terminable An. nuities? What are Exchequer Bills, and what rate of interest do they bear? What are India Bonds, and what interest do they bear? 8. How are Commission, Brokerage, and Stock transactions calculated? 9. What is the Rule for finding Commission at 4 per cent.? 10. How is Commission or Brokerage, at other rates than that of per cent., found? CHAPTER XXVI. THE CHAIN RULE, 707. This rule is of great utility in mercantile calculations, on account of its simplicity and conciseness, and the readiness with which it adapts itself to every kind of question which has the determination of the relative proportions of quantities for their object. It may very properly be called the Universal Rule; for every operation in arithmetic may be solved by it, and generally with greater ease than by the rules in common use. This rule is particularly applicable to calculations in exchanges, in which calculations it is acknowledged that foreigners greatly excel us, and which may be attributed to their general use of this rule. It is matter of surprise, that this rule, though so long used on the continent, and with such advantage, should, until lately, have been unknown in this country; and that as yet a knowledge of it should be so little cultivated, notwithstanding its superiority to the common modes of calculation. This Rule, which was invented by a German named Dee Rees, is founded on the principles of Equations and Fractions combined. To the student who has properly studied what is advanced in paragraphs from 260 to 363; when treating on Fractions, in paragraphs from 496 to 512; when treating on Equations, and in paragraphs from 596 to 598, when treating on the Rule of Three by Equations: to the student who has studied attentively the subjects contained in these paragraphs, little other explanation will be necessary than merely to give a few examples ready performed. 708. In order to render the principles of this rule as clear as possible, I shall commence with examples which are easy of performance. 709. In stating questions in this rule, it must be observed, that every term of the question is either a dividend or a divisor; that the dividend terms and divisor terms are arranged in separate columns, the dividend terms on the right, and the divisor terms on the left; that the term, on which the demand lies, must form the first term on the right, and on the line next below it, on the left hand column, we must place a term of the same denomination, and on the right a term with which it is most closely connected. Proceed in this manner throughout the terms: the statement forming a connected chain. When the statement is complete, multiply the right hand terms into themselves for a dividend, and the left hand terms for a divisor, and the quotient will be the answer in the same denomination as the last right hand term. 710. EXAMPLES. 1. What is the interest on 3001., at 5 per cent.? By Equations. 300 X 5 =3X5=151. and 2. What will 14 lbs. of sugar cost at 84s. per cwt. ? What will there being 112 lbs. in 1 cwt. 84 shillings. 14 lbs. of sugar cost, 1 cwt. costing 112 1176 10s. 6d., Ans. 112 3. What will 1 lb. of sugar cost, at 84s. per cwt.? What will there being 112 lbs. in 1 lb. of sugar cost, ] cwt. 84 shillings. 1 cwt. costing 12 pence. 112 1008 =9d., Ans. 112 4. What will be the value of 364 francs in English money, if each franc be worth 10d. sterling. What will be the value of when 1 franc is worth and 12 pence equal 5. What is the value of 6580 francs, at an exchange of 25 francs 25 centimes per pound sterling? Note. As 100 centimes make a franc, 25 francs = 2500 centimes. Note. When the student is tolerably versed in stating, the writing may be omitted, thus. 6. How much stock at 655 can be purchased for £4734 ? 7. If 3lbs. of tea be worth 7lbs. of coffee, and 3lbs. of coffee be worth 12lbs. of sugar, and 3lbs. of sugar be worth 4lbs. of soap; how many pounds soap should be received in ex change for 15lbs. tea? For examples for practice, take those given under the heads of proportion, barter, interest, &c. &c. QUESTIONS FOR EXAMINATION UNDER CHAP. 26. 1. What is the Chain Rule? For what purposes is it particularly applicable? For what purposes is it generally ap plicable ? 2. On what principles is the Chain Rule founded? 3. How are questions in this Rule stated. How are they performed ? CHAPTER XXVII. EXCHANGE. 711. FOREIGN EXCHANGES are transfers of money from one country to another, either in bullion or through the media of Bills of Exchange. A Bill of Exchange is defined by Blackstone to be an open letter of request from one person to |