obliged to sell it for 10 per cent. less than his asking price. He How much did the fruit cost? What was his asking price?

gained $98 by the transaction. For how much did he sell it?

Ans. to last, $1220.

20. I bought a horse of Mr. A for 15 per cent. less than it cost him, and sold it for 30 per cent. more than I paid for it. I gained $15 in the transaction. How much did the horse cost Mr. A? How much did it cost me? For what did I sell it? Ans. to last, $65. 21. By selling Java coffee at 18 cents per pound I make a profit of 20 per cent., for how much must I sell it to make a profit of 163 per cent. ? Ans. 17 cents.

22. The cost of purchasing and transporting a quantity of goods from New York to Chicago is 9 per cent. of the first cost of the goods. If a merchant in Chicago wishes to make a profit of 25 per cent. on the full cost of the goods, what per cent. gain on the first cost must he ask for them? What amount of goods must he purchase in New York to realize a profit of $3625 on the first cost? What would be the real profit on full cost? Ans. to the last, $2725. 23. What must be the asking price of cloth costing $3.29 per yard, that I may deduct 12 per cent. from it, and still gain 12 per cent. on the cost? Ans, $4.23.

24. I bought a lot of coffee at 12 cents per pound. Allowing that the coffee will fall short 5 per cent. in weighing it out, and that 10 per cent. of the sales will be in bad debts, for . how much per pound must I sell it to make a clear gain of 14 per cent. on the cost? Ans. 16 cents.

25. What must be the asking price of raisins costing $7.364 per box, that I may fall 10 per cent. of it and still gain 10 per cent, on the cost, allowing 10 per cent. of sales to be in bad debts? Ans. $10. Note.-Other problems in Profit and Loss, involving Interest, etc., will be given in miscellaneous examples.

COMMISSION AND BROKERAGE.

ART. 77. Money received for buying and selling goods or other property, collecting debts, or transacting other business of like nature for another person or party, is called Commission.

Commission is usually estimated at a certain per cent. of the amount of the purchase, sale, collection, or other business transacted.

A person who buys and sells goods, or transacts other business on commission, is called a Commission Merchant, Agent, or Factor.

When a person engaged in the Commission business lives in a foreign country, or in a different part of the country, he is called a Correspondent or Consignee; goods shipped to such a person to be sold are called a consignment, and the person who sends the goods a Consignor.

The rate per cent. of commission, or the rate of commission as it is called, varies with the amount and nature of the business.

Brokerage is money received for buying and selling stocks, making exchanges of money, negotiating bills of credit, or transacting other like business. Like Commission, it is computed as a certain percentage of the amount of the money involved in the transaction. Brokerage upon stocks is usually computed upon their par value.

ART. 78. The problems in Commission and Brokerage come under one of the two following cases:

1. To find the commission or brokerage on any given sum at a given rate per cent.

RULE.-Multiply the given sum by the given rate per cent. expressed decimally.

2. When the given amount includes both the sum to be invested and the commission or brokerage.

RULE.-Divide the given amount by $1, increased by the rate per cent. of commission and brokerage, expressed decimally; the quotient will be the sum to be invested.

The commission or brokerage may be found by subtracting the investment from the given amount.

Examples.

1. A commission merchant in New Orleans purchased cotton for a manufacturer in Lowell to the amount of $16576. What is his commission at 2 2. Paid a broker money for Eastern funds.

per cent. ?
Ans. $414.40.
per cent. for exchanging $750 Ohio
How much was the brokerage?
Ans. $1.87,

3. My agent charges me $25 for collecting $800. his rate of commission?

What is

Ans. 31%.

4. An architect charges per cent. for plans and specifications, and 1 per cent. for superintending a building which cost $32000. What is his fee?

Ans. $600.

5. I collected 65 per cent. of a note of $87.50, and charged 5 per cent. commission. What is my commission and the sum paid over? Ans. to last, $54.03.

per cent. mission?

6. My agent in Baltimore has purchased goods for me to the amount of $1250, for which he charges a commission of 13 What sum must I remit to pay for goods and comAns. $1271.871. 7. Sent to my agent in Cincinnati $765 to purchase a quantity of bacon; his commission is 2 per cent. on the purchase, which he is to deduct from the money sent. What is his commission, and what does he expend for bacon ?

Ans. to last, $750.

Remark. The $765 sent includes the sum to be invested in bacon and the 2 per cent. commission on the money thus invested. For every 102 cents sent, he will lay out 100 cents for bacon; hence the $765 is of the amount invested. See Case IV. Percentage.

8. I have received $11200 from my correspondent in Boston with directions to purchase cotton, first deducting my commission, 2 per cent. What is my commission, and how much must I expend for cotton ? Ans. to last, $10926.829.

9. My agent at Chicago writes that he has purchased for

me 4000 bushels of wheat at 80 cents a bushel, and wishes me to send him a check on New York, which he can sell to a broker for a premium of per cent. How large a check shall I send him, his commission being 3 per cent. ?

Ans. $3271.464.

10. Field & Parsons sell for H. Johnson & Co. 3500 lbs. of butter at 20 cts. a lb., 2580 lbs. of cheese at 9 cts. per lb., at a commission of 5 per cent. They invest the balance in dry goods, after deducting their commission of 2 per cent. for purchasing. How many dollars worth of goods do Johnson & Co. receive? What is the entire commission of Field & Parsons? Ans. to last, $863.99. 11. I received of Brown & Lincoln $560 in uncurrent money to purchase books. I pay a broker 3 per cent. for current funds, and invest the balance, after deducting my commission of 2 per cent. What do I pay for books, and what is my commission ? Ans. to last, $10.596.

12. A broker bought 5 shares of R. R. stock at 35 per cent. discount, what is the brokerage at 5 per cent., the par value of each share being $100? Ans. $25.

INSURANCE.

ART. 79. Insurance is a contract by which one party engages, for a stipulated sum, to insure another against a risk to which he is exposed.

The party who takes the risk is called the Insurer or Underwriter, and the party, protected by the insurance, the Insured.

The sum paid for obtaining the insurance is called the Premium, and the written contract is called the Policy.

Insurance is generally effected by a joint-stock company or by individuals who unite to insure each other, called a Mutual Insurance Company.

When the insurer agrees to pay the insured a certain sum of money if he is sick, it is called Health Insurance.

When the insurer agrees to pay to the heirs of the insured, or to some specified person, a certain sum in case of his death, it is called Life Insurance.

Insurance on property is either fire or marine.

Fire Insurance is a guarantied indemnity against the loss or damage of property by fire. It is generally effected for a year or term of years.

Marine Insurance is a guarantied indemnity against the loss or damage of property by the perils of transportation by water. Insurance on the property carried is called Cargo Insurance; that on the vessel is called Hull Insurance.

In Mutual Insurance Companies, each person insured becomes a party to a certain extent in the losses of the concern. The person insured pays a small cash premium at the time the insurance is effected, and he also gives to the company a premium-note, upon which he is liable to be assessed to the amount of its face. After a sufficient sum has accumulated from the premiums no further assessments are made on the notes, and any surplus funds are distributed among the members of the company.

ART. 80. Most of the problems in Insurance come under one of two cases.

1. When the amount insured and the rate of insurance are given to find the Premium.

RULE.-Multiply the amount insured by the rate of Insurance expressed decimally.

2. To find for what sum a policy must be taken out, at a given rate, to cover both property and premium.

RUL-Divide the sum for which the property is to be insured by $1, diminished by the rate of insurance expressed decimally. (See Example 13.)

Examples.

1. What is the premiun for insuring goods valued at $4500 at 2 per cent. ? Ans. $112,50. 2. A hotel worth $15000 is insured for of its value at per cent. The policy and survey cost $1.50; premium?

23

what will be the

Ans. $39.

CA