employed in the transaction, or on the par value of the given shares. Hence,

232. To compute commission, brokerage, and the advance or discount on stocks.

Multiply the given sum by the given per cent. expressed in decimals, and point off the product as in Percentage. (Art. 225.)

EXAMPLES.

Ex. 1. A commission merchant sold a quantity of corn for $236, and charged 2 per cent. commission: how much did he receive for his services? Ans. $4.72.

2. A tax gatherer collected $533.56, for which he was to have 3 per cent. commission: how much did he receive?

3. An auctioneer sold $860.45 worth of goods at 24 per cent. commission: how much did he receive?

4. An agent sold a quantity of oil for $265.35, and charges 24 per cent. commission: how much did the agent receive; and how much did the owner receive for his oil?

5. Sold goods to the amount of $356, at 43 per cent. commission: how much did I receive for my services? 6. Bought goods amounting to $480, at 34 per cent. commission: what is the amount of my commission? 7. What is the commission on $163.625, at 6 per cent. ?

8. What is the commission at 5 per cent. for purchasing flour to the amount of $1365.25?

9. I send my agent $1000 to be laid out in cotton, and agree to allow him 53 per cent. commission: what is the amount of his commission, and how many dollars worth of cotton shall I receive?

10. A lawyer collected a debt of $695.05, and charged 7 per cent. how much did he receive, and how much will he pay his employer?

QUEST.-232. How do you compute the commission, brokerage, &c. on

any given sum?

11. A merchant negotiated a bill of exchange of $5000 with a broker, and agreed to give him 7 per cent.: how much did the broker receive?

12. What is the brokerage on $8265, at 5 per ct.? 13. What is the brokerage on $6524.13, at 8 per ct.? 14. What is the commission on $146.356, at 20 per cent.?

15. What is the commission on $1625.75, at 25 per cent.?

16. What is the commission on $25026.10, at 15 per cent. ?

17. What is the brokerage on $50265.95, at 3 per cent.?

18. What is the brokerage on $38212.085, at 14 per cent.?

19. What is the brokerage on $752600, at 1 per cent.? 20. What is the brokerage on $1000000, at per cent.?

21. Bought 10 shares of bank stock, for which I agreed to pay 4 per cent. advance: how much did the stock cost me ?

Suggestion. The stock manifestly cost me its par value, viz: $1000, together with 4 per cent. of it. Now $1000 x.04 $40; and $1000+$40-$1040. Ans.

22. A man bought 5 shares of the Boston and Providence Railroad stock at 5 per cent. advance: what did his stock cost him?

23. A stock broker bought 15 shares of the New York and Erie Railroad stock at par, and sold them at 15 per cent. discount: what did they come to?

24. Sold 29 shares in the American Manufacturing Co., at 16 per cent. advance: what did they come to?

25. A stock jobber bought 45 shares of the Auburn and Rochester Railroad stock at 3 per cent. discount, which he sold at 7 per cent. advance: how much did he make by the transaction?

26. A widow invested $9000 in the Commonwealth Bank stock at par, and finally sold it at 75 per cent. discount how much did she lose?

27. Owned 53 shares of the Long Island Railroad stock, which were sold at auction at 13 per cent. advance : how much did they come to?

28. Bought 38 shares in the Union Gas Co. at 7 per cent. advance and sold them at 5 per cent. discount: how much was my loss?

INTEREST.

233. Interest is the sum paid for the use of money by the borrower to the lender. It is reckoned at a given per cent. per annum; that is, so many dollars are paid for the use of $100 for one year; so many cents for 100 cents; so many pounds for £100 ; &c.

OBS. The learner should be careful to notice the distinction between Commission and Interest. The former is reckoned at a certain per cent. without regard to time; (Art. 227;) the latter is reckoned at a certain per cent. for one year; consequently, for longer or shorter periods than one year, like proportions of the percentage for one year are taken.

The term per annum signifies for a year.

234. The money lent, or that for which interest is paid, is called the principal.

The per cent. paid per annum, is called the rate.
The sum of the principal and interest is called the

amount.

Thus, if I borrow $100 for 1 year, and agree to pay 5 per cent. for the use of it, at the end of the year I must pay the lender the original sum $100 I borrowed and $5 interest, making $105. The principal in this case, is $100; the interest $5; the rate 5 per cent.; and the amount $105.

235. The rate of interest is usually established by law, which is therefore called legal interest. It varies in

QUEST.-233. What is Interest? How is it reckoned? Obs. What is meant by the term per annum? 234. What is meant by the principal? The rate? The amount? 235. How is the rate usually determined? Is it the same everywhere?

different countries and in different parts of our own country.

OBS. 1. The legal rate of interest in New England, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, Tennessee, Kentucky, Ohio, Indiana, Illinois, Missouri, and Arkansas, is per cent.

6

7

In New York, South Carolina, Michigan, Wisconsin, and Iowa, it is per cent.

In Georgia, Alabama, Mississippi, and Florida, it is 8 per cent.; and in Louisiana but 5 per cent.

On debts and judgments in favor of the United States, interest is computed at 6 per cent.

2. In England and France the legal rate is 5 per cent.; in Ireland, 6 per cent. In Italy, about the commencement of the 13th century, it varied from 20 to 30 per cent.

236. Any rate of interest higher than the legal rate, is called usury, and the person exacting it is liable to a heavy penalty.

Any rate less than the legal rate may be taken, if the parties concerned so agree.

OBS. 1. When no rate is mentioned, the rate established by the laws of the State in which the transaction takes place, is always understood to be the one intended by the parties.

2. The term per annum is seldom expressed in connexion with the rate per cent., but it is always understood; for the rate is the per cent. paid per annum. (Art. 234.)

Ex. 1. What is the interest of $15 for 1 year,

cent. ?

4

at 4 per

Suggestion. 4 per cent. is ; that is, $4 for $100, 4 cents for 100 cents, &c. (Art. 223.) Now as the interest of $1 (100 cents) for a year, is 4 cents, the interest of $15 for the same time, is 15 times as much. And 15 times 4 cents are 60 cents. Ans. 60 cents.

QUEST.-Obs. What is the legal rate of interest in New Engand, New Jersey, &c.? What is the legal rate of interest in New York, South Carolina, &c.? In Georgia, Alabama, &c.? On debts due the United States? What is the legal rate of interest in England and France? Ireland? 236. What is a higher than a legal rate called? What is the consequence of usury? Is it safe to take less than legal interest? Obs. When no rate is mentioned, what rate is understood?

Operation.
$15 Prin.
.04 Rate.

$.60 Int.

We multiply the principal by the given rate per cent. expressed in decimals, as in percentage; (Art. 225;) and point off as many decimals in the product as there are decimal places in both factors.

2. What is the interest of $45 for 1 year, at 3 per cent. ? $1.35. Ans.

3. What is the interest of $32.125 for 1 year, at 4 per cent.?

Operation.

$32.125 Prin.
.045 Rate.

160625

128500

$1.445625 Ans.

4 per cent. expressed in decimals is .045. (Art. 223.) Multiply, &c. as above, and point off 6 decimals in the product. (Art. 191.) The fractions of a mill may be omitted in the answer. Hence,

237. To find the interest of any sum, at any given rate, for 1 year.

Multiply the principal by the given rate per cent. expressed in decimals, and point off the product as in multiplication of decimal fractions. (Art. 191.)

The amount is found by adding the principal and interest together. (Art. 234.)

OBS. 1. In adding the principal and interest, care must be taken to add dollars to dollars, cents to cents, &c. (Art. 211.)

2. When the rate per cent. is less than 10, a cipher must always be prefixed to the figure denoting it. (Art. 223. Obs. 1.) It is highly important that the principal and the rate should both be written correctly, in order to prevent mistakes in pointing off the product.

4. What is the interest of $75.21 for 1 year, at 6 per cent.? $4.5126. Ans.

5. What is the interest of $100 for 1 year, at 5 per cent.? at 6 per cent.? at 4 per cent.? at 7 per cent. ?

QUEST.-237. How do you compute interest for 1 year? How find the amount? Obs. What precaution is necessary in adding the principal and interest together? When the rate is less than 10 per cent., how is it written?