2. What is B's tax if the rate of taxation is 13% and his assessed valuation is $7850?

3. In a certain city whose assessed valuation is $2,645,000, a tax of $6575 is to be raised. Find the rate of taxation

and Mr. Healy's tax on property assessed at $6000.

4. In a certain township the tax was $.01786 on a dollar. What was the tax on a farm assessed at $5750?

5. State and solve a problem in taxes.

DUTIES

161. Duties or customs are taxes levied by the government on imported goods.

An ad valorem duty is a tax computed upon the price paid for the goods; as, an ad valorem duty of 75% on the cost. A specific duty is a tax on the quantity of goods without regard to their cost; as, a specific duty of 15 cents a yard, or 25 cents per pound.

An invoice is a bill accompanying the imported goods, showing their quantity and value.

Principle.

Ad valorem duties are computed at a certain per cent of the value of the goods, and specific duties at a certain sum per unit of weight, length, etc.

PROBLEMS

WRITTEN

162. 1. What is the duty at 40% ad valorem on 16,500 clocks invoiced at $1.60 each?

2. What is the duty, at 55 a pound, on 45 cases of

3. S. M. Giles of Chicago imported from Geneva 150 watches invoiced at $55 each, and 250 diamonds at $80 each. What was the duty, the rate being 40% ad valorem on watches and 10% on diamonds?

4. Find the duty on 2260 lb. of cheese at 6¢ a pound.

5. What is the duty on blankets valued at $225 and weighing 500 lb., at 35% ad valorem and 33¢ per pound?

6. A painting valued at $1800 is imported from Florence, Italy. At 20% ad valorem find the total price the purchaser has to pay for it in New York.

7. Stewart & Co. import from England 18 doz. silk umbrellas invoiced at $2 each. How much must they pay for the invoice, including ad valorem duty at 50 % ?

8. Find the duty on an invoice of $300 worth of blankets weighing 1000 lb., at 30 % ad valorem and 22¢ per pound.

9. What is the duty on 500 dozen table knives valued at $7 a dozen, at 15% ad valorem and 16 each?

10. Fields, Ransom & Co. of New York imported from Havana 75 hhd. of molasses, 63 gal. each; 125 hhd. of sugar, 500 lb. each; 800 boxes of cigars (each box weighing 1 lb. and containing 100 cigars), at $8 per box. 7% was allowed for leakage on the molasses. Find the duty at 3 a gallon on the molasses, 1.95¢ per pound on the sugar, and $4.50 per pound, plus 25% ad valorem, on the cigars.

11. Construct and solve a problem in customs and duties.

INTEREST

163. Applications of percentage, with the element of time. 1. Interest. 2. Partial payments. 3. Bank discount.

164. Interest is a sum paid for the use of money. Simple interest is interest on the principal only. Compound interest is interest on the amount of principal and interest, if the interest is unpaid when due.

Usury is a rate greater than the legal rate, which is the rate established by law. In most states usury is prohibited. The principal is the sum of money for the use of which interest is paid.

The amount is the sum of the principal and interest.

The rate of interest is the per cent of the principal paid for its use for one year. Thus, the expression, "interest at the rate of 5%," means that the interest for one year equals 5% of the principal.

SIMPLE INTEREST

PROBLEMS

ORAL

165. 1. What is the interest on $250 for one year at the rate of 5%?

The amount?

2. What is meant by interest at 4%? 5%? 7% ? 21% ? 41%?

3. What is the interest on $100 for one year at 6%? 5%? 31%? 61%? 10%?

4. Find the interest on $400 for one year at 4%, 5%. 61%.

5. Answer the foregoing when the interest runs for 2 years.

6. Find the interest on $500 for 3 years at 4%.

7. I borrow $300 at 5%, and at the expiration of 4 years pay the interest. How much interest do I pay?

8. Find the amount of $800 at 6% for 2 years.

9. What is the interest on $600 at 6% for 8 months?

10. Find the amount of $1200 at 5% for 2

years.

11. Frame a problem in interest, and solve it.

Study Recitation

166. Finding the interest on any sum of money for 1 year at any rate is the same as finding any per cent of a number.

The interest on any sum of money for any number of years is the interest for 1 year multiplied by the number of years.

The interest for 1 month is of the interest for 1 year. The interest for any number of months is the interest for 1 month multiplied by the number of months.

Any number of months and days may be expressed as months and tenths of a month.

To reduce any number of days to a fraction of a month.

RULE: Divide the number of days by 3 and call the result tenths of a month.

23. 6 years, 7 months, and 13 days 6 years, 7.43 months.

24. 9 months and 18 days

25. 11 months and 23 days

26. 3 months and 17 days 27. 5 months and 26 days 28. 1 month and 10 days

=

= 9.6 months.

= ? months.
= ? months.
= ? months.
= ? months.