2. A farmer insures £950 on his stock, at 2s. per cent. ; what does it cost him?

NOTE.-The duty and policy, in the following questions, are the same as in the first Example, if not otherwise expressed.

Ans. £2 8s. 111⁄2d.

3. What is the insurance on £456 15s. the premium being 7s. 6d. per cent? 4. Insured goods to the amount of £360, premium 5s. per cent. Required the expense. Ans. £1. 9s. 91d.

5. Insured £750, premium 10s. per cent. Required the Ans. £4 18s. 6d.

expense.

6. Insured £750, premium 5s. per cent, policy 2s. 6d. per cent, and duty 3s. per cent. Required the expense.

7. Insured £1750, premium 2 per cent., policy 2s. 6d. per cent, duty 3s. per cent., and per cent. commission on the amount of insurance. Required the expense.

Ans. £48 13s. 8d.

8. Insured £6320, premium 23, duty 3s. per cent., policy 2s. 6d., per cent. with a return of 10 per cent. on the premium; required the expense of the same.

Ans. £152 9s. 4 d.

CASE II. To find the amount to be insured, to include a given sum and costs.

RULE-As the difference between £100 and the rate per cent. of insurance is to £100 so is the value of the property to the sum to be insured,

EXAMPLES.

1. What sum must be insured to cover £750, the premium being £3 14s. 6d. per cent., duty 3s. per cent., and policy 2s 6d. per cent?

£. £. S.

As 96 : 100 :: 750 781 5 Ans.

2. What sum must I insure to cover £2500, the premium being 2 per cent., duty 3s. per cent., and policy 2s. 6d. per Ans. £2568 1s. 0şd

cent?

3. Insured a ship and cargo for £6750, which will cover expenses; premium £4 4s. 6d. per cent., duty 3s. per cent., and policy 2s. 6d. per cent. Required the value of the ship and cargo. Ans. £6446 5s. Od.

COMPOUND INTEREST.

COMPOUND INTEREST is, when the interest due is not paid, but remains in the borrower's hands, and is added to the principal for a new principal, which bears interest at the given rate per cent. Thus a new principal bearing interest, is formed at the end of each year or time when the interest becomes due.

The last new principal will be the amount. If the first principal or sum put out be subtracted from this amount, the remainder will be the interest for the whole time.

N.B. The interest of each succeeding principal is found as in simple interest.

EXAMPLES.

1. What is the compound interest and amount of £325, for 3 years, at 5 per cent. per annum?

2. What is the compound interest of £350 15s. 5d. for 3 years, at 5 per cent? Ans. £55 5s. 91d. 3. Required the amount of £450 for 5 years at 4 per cent. per annum compound interest.

Ans. £547 9s. 101d.

4. Lent £245 15s. 5d. 3 years and 9 months ago; how much is due to me at 5 per cent. per annum compound interest? Ans. £295 3s. 6d.

5. What is the difference between the simple and compound interest of £365, for 3 years and 4 months, at 5 per cent. per Ans. £3 14s. 9ad.

annum?

6. Required the compound interest on £270, for 3 years and 9 months, at 5 per cent. per annum, the interest being payable half yearly. Ans. £54 19s. 1d.

7. A and B, each lent £500, for 3 years, at 5 per cent. per annum, compound interest: by agreement, A's interest was to be paid half yearly, and B.'s yearly. Query, which had the advantage, and how much?

Ans. A received £1 0s. 74d. more than B.

BUYING AND SELLING STOCK.

THE term Stock is applied to those sums of money lent to Government, which constitute the Funds, or National Debt, for which the lenders, or their assigns, receive interest out of the public taxes.

It is also applied to the sums which form the capital of the Bank of England, the East India Company, South Sea Company, &c., called Bank Stock, East India Stock, &c.

The National Debt amounted, on the 5th of January, 1841, to £767,946,051 9s. 1d. This sum has been borrowed, by government, of different individuals and companies, in various sums, called per cents. or hundreds; as the 3 per cents., 3 per cents., 4 per cents., 44 per cents., and 5 per cents. The terms on which those different Stocks were taken or bought, are as follows:-A specific sum was given for a nominal one; thus the price of the 3 per cents. was £60 for £100 stock, which yields a dividend of £3 a year; for the 3 per cents., £70 were given for the £100 stock, which yields a dividend of £3 10s. a year; for the 4 per cents., £80 were given for the £100 stock, which yields a dividend of £4 a year, and so on, for the rest; consequently, for all sums originally invested in government securities, 5 per cent. per annum, is paid. The 4, 44, and 5 per cent Stocks have been reduced to 31 per cent. Stock, or paid off at par, at the option of the holder.

The Debts of Government and Joint Stock Companies differ from other contracts, inasmuch as the public creditor or stock-holder can only claim his interest; he may, however, sell or transfer his claim to any other person, and thus obtain his capital, more or less as the price of Stock may be; this is commonly called Stock Jobbing, in which a great trade is carried on in London.

NOTE-This debt was commenced in the reign of William the Third, in order to carry on an expensive war with France, and has been increased from time to time, for the same purpose, to the above incredible amount!! Besides the above sum, which is called the Funded Debt, there is the Unfunded Debt, amounting to upwards of 33 millions. The forms of this debt are various; such as Exchequer Bills, Navy Bills, &c., issued under the sanction of an Act of Parliament, to meet contingent expenses, for which no provision has been made. These Bills bear interest, at a certain rate per cent. per day, and are distributed among those who are willing to advance their value. After a certain time they are received in payment by Government for taxes, and the interest due on them at the same time. The interest of the Funded Debt, January 5th, 1841, was £24283940 11s. 5d.

The National Debt, though stated to be £767,946,051 9s. 1d. is not sterling money, but stock the ; as per cents., 3 per cents. &c. And were any of these stocks paid off, the holder of £100, 3 per cent. stock, would only receive £60; the holder of £100, 3 per cent. stock, £70; and so on.

The Bank of England, East India Company, South Sea Company, and all other Companies, where the tradîng capital is raised in shares, are Joint Stock Companies. The Bank Stock is divided into shares of £200 each, The Shares in other Companies vary, and are as agreed upon by the founders. The shares of many of our Joint Stock Banks, Insurance Companies, &c., are as low as £5 each, and are all transferable.

CASE I. To find the cost of any given quantity of stock.

RULE.-Add the broker's charge to the price per cent when a purchase is made, but subtract it in case of a sale; then, as £100 stock is to the sum in the first case, or the difference in the second, so is the given quantity of stock to the proceeds required.

Note. Every purchase or sale of stock is made through the medium of a broker, whose charge is 2s. 6d., or for every £100 of stock. A person purchasing stock through the medium of a country banker, will be subject to an additional charge of 5s. per cent. upon the sum invested, which must be added to the per cent.

EXAMPLES.

1. Bought £500 of 34 per cent. stock, at 95 per cent.; what does it cost me?

As £100 : 95 2 6 :: £500 : 475 12 6 the cost required.

2. Sold £800 of 3 per cent. stock, at 743 per cent. Required the amount of the proceeds.

3. Bought £625 of 34 per cent. stock, at 791 per cent; to what does it amount? Ans. £496 1s. 10d.

4. Sold £750 stock, in the 3 per cents. at 85 per cent. ; required the proceeds.

Ans. £641 5s.