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USING WHAT YOU HAVE LEARNED

1. Mr. Upton is left a legacy of $3000 by his uncle and wishes to invest it wisely. He can invest the money in a mortgage which runs for 3 yr. and pays 51% per annum. How much income would this bring him in 3 yr.?

2. If he should put the $3000 into a certain savings bank, he would receive 4% compounded semiannually. How much interest would the bank pay him in 3 yr.? This is equivalent to what per cent simple interest per year?

3. Mr. Upton also investigates the returns on an industrial stock in which he has been advised to invest. For several years the company has paid 13% quarterly dividends, and its stock is quoted at 1248. Allowing for brokerage at $15 per 100 shares, how many shares could Mr. Upton buy with his $3000? What per cent of return from his investment would he receive?

4. Mr. Upton's broker tells him that 43% Victory Loan bonds are selling below par and that with his $3000 he can buy bonds of this issue of par value $3200. What per cent on the investment would these bonds yield?

5. His broker suggests that in 3 yr. he probably could sell the bonds for more than he paid, and that probably after the brokerage is paid there would be a profit of $2 on each $100 par value. Including this gain, what would be the total income in the 3 yr. if Mr. Upton bought the bonds described in Ex. 4? This is equivalent to what per cent of return per year?

6. Write a statement of the plan which you advise Mr. Upton to adopt in investing his legacy, and give your reasons.

At the discretion of the teacher, the pupils, in considering Ex. 3, may discuss the effect a decrease or an increase in the dividend rate or in the market price would have on the desirability of the investment.

USING WHAT YOU HAVE LEARNED

1. A man hires a cottage for $26 a month. How much rent does he pay in 1 yr.? The owner pays $42.80 a year in taxes, $5.60 for insurance, $60 for repairs, and 5% of the rental for collecting. How much does the owner have left from the rental ?

2. The owner of the cottage in Ex. 1 sells it to the tenant for $3150 and pays $150 to an agent for making the sale. If the former owner invests the proceeds in a 6% mortgage, is his income increased or is it decreased, and how much?

3. The new owner in Ex. 2 spends $500 in improvements to the property. What is now his total investment in the cottage? What is the annual interest on the investment at 6% ?

4. Owing to the improvements made in Ex. 3 the taxes are increased to $51.30 a year, and the insurance to $6.40. Since he has just had the house improved, he has no repair bill the first year. What is the monthly cost of his owning the cottage the first year, including interest on the investment? How does this compare with the rent which he formerly paid (Ex. 1)?

5. The second year that he owns the cottage in Ex. 4 he pays $75 for repairs as well as the other expenses given. At the end of the year he sells it for $4000, and figures out whether he has lost or gained by owning it. He adds the expenses, including interest on the investment, and compares them with the amount received from the sale. What is the result?

6. On studying the result in Ex. 5 the man realizes that he has made no allowance for the fact that he has lived in the house for 2 yr. and has paid no rent. Owing to the improvements made he could have rented the cottage for $30 a month. Taking this figure as a fair rental, at what amount should the man in Ex. 5 calculate his gain or loss?

II. GRAPHS

Graph. When we are considering statistics of any kind it is often very helpful to represent them graphically. For example, the values of the products of the leading manufacturing cities in the state of New Jersey in a certain year were as follows: Newark, $202,000,000; Jersey City, $129,000,000; Bayonne, $74,000,000; Perth Amboy, $73,000,000; Paterson, $70,000,000; Camden, $49,000,000; Trenton, $49,000,000; Passaic, $42,000,000; Elizabeth, $29,000,000; and Hoboken, $20,000,000. The figures do not strike us as strongly as they would if expressed graphically, as in the following diagram, in which each space represents $10,000,000.

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Any graphical representation of statistics of any kind is called a graph. The kind of graph shown above is called a bar graph or a bar pictogram.

Sometimes the bars in such a graph stand vertically, as in the upper graph shown on page 248. Pupils should be familiar with both kinds of bar pictograms.

The word "graph " is applied to all such pictorial representations. Graphs have come to be used in all kinds of modern business, and the pupil should become familiar with a few of the more important types. Such graphs are now found in newspapers and magazines and are also used to record the temperature in the schoolroom, the standing of pupils, and the like.

Bar Pictograms. The value of bar pictograms in business may easily be seen by examining two practical cases. The first case shows the sales of goods in a business house from 1916 to 1920. The owners of the business could see at a glance that the growth of the business from 1916 to 1918 was not maintained in 1919, and that in 1920 there was an actual decrease in the amount of the sales. It will be noticed that the graph begins with $100,000. To draw a graph showing the total sales to the scale used here would require 3 in. of space, and since all the figures are over $100,000 and the purpose of the graph is to compare the annual sales of this company alone, the smaller form is better. To take another illustration, when the statistics setting forth the expenses of a certain company were presented to the directors

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by the above graph, they saw much more clearly than ever before that the selling expenses were excessive, that the amount paid for advertising the goods was relatively too small, that the expenditure for equipment needed investigating, and that the amount assigned to the social betterment of their employees was altogether too small to produce good results.

Squared paper like the above is very convenient for drawing graphs. It may be purchased at a stationer's shop.

BAR PICTOGRAMS

Represent the following statistics by bar pictograms :

1. In a recent year the number of clothing, millinery, and laundry establishments in Manhattan was 12,000, and in Brooklyn, 3600.

2. Recently the number of printing and paper-goods establishments in New York City was as follows: Manhattan, 2150; The Bronx, 47; Brooklyn, 311; Queens, 36; Richmond, 17.

3. In a recent year the number of textile factories in New York City was as follows: Manhattan, 752; The Bronx, 71; Brooklyn, 255; Queens, 32; Richmond, 5.

4. The net income of a certain railway for a recent year was applied as follows:

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Draw a vertical bar pictogram, using in. to represent $1,000,000.

5. The annual business of a company was as follows: 1915, $48,000; 1916, $72,000; 1917, $88,000; 1918, $124,000; 1919, $130,000; 1920, $142,000; 1921, $144,000.

6. The total annual business of a company for the last ten years was as follows: $275,000, $285,000, $295,000, $325,000, $310,000, $330,000, $360,000, $340,000, $375,000, $400,000.

In Exs. 5 and 6 the pupils should be asked to interpret the graph; that is, to tell what it signifies in the business. In Ex. 5 they may naturally consider the effect of the war upon the business, and in each case they should consider the prospects as shown by the graph.

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