8. What amount of tax must be assessed in order that $6382.60 may remain after paying 3% commission for collecting? 9. A tax-collector's commission at 2% was $182.50; what amount of tax was assessed, and what were the proceeds? 10. A city whose property is valued at $14,000,000 wishes to assess a tax which will yield $40,950 after paying 21% commission for collecting; what is the rate of taxation? 11. After deducting his commission of 4% a collector paid to the city authorities $48,206.40; what was the amount of his commission? 12. My property, which cost me $7800, is taxed at of its value; what is the rate of taxation, if my tax is $15.60? 13. A city assesses a school tax of $63,000, and pays 2% commission for all taxes actually collected; what amount will be received by the city, if only 90% of the tax can be collected? 14. The taxable property of a city, valued at $4,100,625, is assessed at of its value: the amount needed for school purposes is $32,075.30; the State appropriation amounts to $2151.37; the balance in the treasury is $17,064.37; what is the rate of taxation, if 2% commission is paid for collecting? 15. B's tax, at the rate of 3 mills on a dollar, is $20.30; what is the value of his property, if it is taxed at only of its value? 164. Insurance. Insurance is security against loss by fire, water, storm, accident, death, or other causes. 165. The Policy is the written agreement between the insurance company and the person insured. 166. The Premium is the sum paid for insurance. It is usually estimated as a certain per cent. of the amount insured. WRITTEN EXERCISES. 1. My house is insured for $4000 at 11%; what is the premium? PROCESS. $4000 .01 $50.00, Ans. PROCESS. 2. For what sum must A insure his house, worth $7020, at 24%, so as to include the premium in case of loss? $7200, Ans. .975)$7020 6825 The premium on $4000, at 11%, is .01 times $4000, which is $50. 1950 1950 Since the premium is estimated on the amount insured, the cost of the house must be (100% 21%) 97% of the amount insured. Hence the amount insured is $7020 divided by .975, which is $7200. 3. What is the premium on $2400 at %? At 18% ? 4. What is the premium on $5400 at 1%? At 1%? At 2%? At 14%? At 21% ? 5. Mr. Long insured his house for $6500 at 1%; what was the premium? 6. B insured his house for $7500, and the contents for $1500, at 2%; what was the premium? 7. Mr. Brown paid $84 for insuring his house for $5600; what was the rate of insurance? 8. C paid $47.75 to insure his house at 11%; what sum was named in the policy? 9. The premium for insuring a house at of its value at 14% is $120; what is the value of the house? 10. B's house, worth $10,000, is insured for of its value; what is the rate of premium, if he pays $96 insurance? 11. For what sum must a barn worth $2500 be insured, at 2%, so that the owner in case of loss may receive both the premium and the value of the barn? 12. M's house was insured for § of its value at 11% the house was burned down, and his loss, including the insurance, was $680; what was the value of the house? 13. A mill is insured for 80% of its value at 1%; what is the value of the mill, if the premium is $72.36? 14. A's store, worth $8500, is insured for of its value at 21%; in case the store is destroyed by fire what is A's actual loss? 15. My house, worth $8000, was insured for of its value at 2% it was destroyed by fire in 1894; what was the actual loss to the company? 16. A house and store worth $9800 is insured at 2%, so that in case of loss both the premium and the value of the property may be covered; what is the premium? 17. If B takes out a life policy for $8000, what is his yearly premium at the rate of $26.50 on $1000? 18. At the age of 28 years I took out an endowment policy for $10,000; what is my yearly premium at the rate of $45.15 on $1000? INTEREST. ORAL EXERCISES. 167.-1. If you borrow $100, and pay 6% of it every year for the use of the money, what must you pay for 1 year? For 2 yr.? For 3 yr.? For 4 yr.? 2. What must you pay annually for the use of $100 at 5% ? At 7%? At 8%? At 9%? At 61%? 3. What must you pay annually at 5% for $200? For $300? For $400? For $500? 4. What must you pay for the use of $100 at 5% for 1 year? For 2 yr.? For 3 yr. ? For 4 yr.? 5. What must you pay for the use of $200 at 6% for 1 year? For 2 yr.? For 3 yr.? For 4 yr.? DEFINITIONS. 168. Interest is money paid for the use of money. 169. The Principal is the sum for which interest is paid. The Amount is the sum of the principal and interest. 170. The Rate of Interest is the interest on one dollar for one year. NOTE.-In interest a year is 12 mo. of 30 da. each. 171. Simple Interest. Simple Interest is interest on the principal only. Common Method. Find the interest 1. Of $100 for 2 yr. at 5%. 2. Of $200 for 3 yr. at 6%. 3. Of $400 for 2 yr. at 7%. 4. Of $500 for 3 yr. at 6%. 5. Of $600 for 10 yr. at 6%. PROCESS. $800 ORAL EXERCISES. WRITTEN EXERCISES. 11. What is the interest of $800 for 3 yr. 10 mo. 15 da. at 7%? $56.00, Int. for 1 yr. 3 168 49 $217, Int. for 37 yr. 6. Of $400 for 3 yr. at 5%. 7. Of $600 for 5 yr. at 4%. 8. Of $200 for 8 yr. at 7%. 9. Of $1000 for 3 yr. at 9%. 10. Of $900 for 2 yr. at 6%. The interest for 1 yr. at 7% is .07 times $800, which is $56. 3 yr. 10 mo. 15 da. equals 33 yr. If the interest for 1 yr. is $56, for 3 yr. it is 3 times $56, which is $217. RULE. Find the interest for one year, and multiply this by the time expressed in years. Required the interest 12. Of $480 for 2 yr. 6 mo. at 7%. Find the amount 21. Of $6000 for 1 yr. 6 mo. at 51%. 22. Of $7200 for 2 yr. 5 mo. at 6%. 23. Of $560 for 4 yr. 8 mo. at 8%. 24. Of $840 for 6 yr. 6 mo. at 6%. Find the interest at 6% of 25. $400 from June 20, 1888, to May 1, 1890. 26. $600 from July 5, 1889, to Sept. 12, 1891. 27. $2000 from Mar. 4, 1890, to Aug. 12, 1893. Find the interest of 28. $500 at 6% for 8 yr. 29. $200 at 61% for 8 yr. 6 mo. 30. $425 at 51% for 4 |