OPERATIONS IN THE FUNDAMENTAL RULES. Addition and Subtraction of circulating decimals can be performed after making the repetends similar and terminating them at the same point. In Multiplication and Division of these fractions it is necessary to reduce them to common fractions and perform the required operations, afterwards changing the results to equivalent circulating decimals. The latter method is here adopted for all operations in the fundamental rules, involving repetends. 1. Find the sum of .06 and .03, and multiply the result by .i. (1 + 34) × 1 = 3 × 1 = 1; + = ANALYSIS.-We reduce .06, .03, and .i to equivalent common fractions,,, and, and perform the required operations, afterwards changing the result to a circulating decimal. RULE. Change circulating decimals to common fractions, perform the required operations, and reduce the result to an equivalent decimal. 2. What is the value of 1.3 + 16.1 + 27.06 + 13.33? 3. What is the value of (7.2 – 3.6) × 6.03? 4. Multiply 3.5 by (4.2-3.8). 5. From 5.8 subtract, and divide the remainder by (2.1 - .03). 6. What is the product of 17.3251 by .66? 7. Divide 25.4 by 16.3, and from the quotient subtract .7. 8. What is the value of .333 of a pound sterling? 9. Reduce .428571 of a week to days. CURRENCIES. The Currency of a country is its money. The following table gives the value in U. S. money (gold) of the current coin of several of the most important countries with which the United States has commercial relations. TABLE OF FOREIGN CURRENCIES. Note.-To change foreign currency to U. S. money, or U. S. money to foreign currency, we multiply or divide, as the case may require, by the value in U. S. money of a unit of the given currency. 1. Change 500 Spanish pesetas to dollars and cents. 2. Change $100 to £ s. d. English money. 3. What is the value of £100 in dollars and cents? 4. A Frenchman visiting the National Exposition brought with him 2000 francs in gold; what was it worth in U. S. money? 5. What is the value of 1000 francs in £ s. d.? 6. What is the value of $150 in Danish crowns? 7. Change 1500 marks of Germany to francs. 8. A bill for port wine at the vineyard amounted to 600 milreis; how many dollars and cents were required to pay it? EXCHANGE.. Exchange is the receiving or paying of money in one place for its value in any other place, by means of drafts or bills of exchange. A Bill of Exchange is a written order for the payment of money, drawn in one place and made payable in another. When the exchange is between different places in the same country, it is called Inland or Domestic Exchange, and the domestic bill of exchange is usually called a Draft. When the exchange is between different countries, it is called Foreign Exchange. A Sight Bill is one which is payable on its presentation. A Time Bill is one which is payable in a specified time after its date, or after presentation. Note 1.—Three days of grace are allowed on time drafts. Note 2.-The maker or drawer of a bill is the person who orders the money to be paid; the drawee is the one on whom it is drawn, the payee is the one to whom it is to be paid, and the remitter is the one who sends it. An Acceptance is an agreement on the part of the drawee to pay the bill in accordance with the conditions named therein, and is indicated by his writing the word accepted," together with his name and the date, across the face of the bill. INLAND OR DOMESTIC EXCHANGE. CASE I. To find the cost of a draft. 1. What is the cost of a sight draft on New Orleans for $10000, at of 1% premium? ANALYSIS.-$1+ $.00125=$1.00125, cost of $1. $1.00125 × 10000 $10012.50, cost of draft. = 2. What is the cost of a draft on St. Louis for $3500, at 60 days, the premium being 14%, interest 6%? ANALYSIS.-$1.0125: =cost of $1 at sight. $.0105 = bank discount on $1 for 63 days. $1.0125 - $.0105 $1.002, cost of $1 at 63 days. $1.002 × 3500= $3507, cost of draft. RULE. = Multiply the cost of $1 by the amount of the draft. 3. What is the cost of a sight draft on San Francisco for $1500, at 15% premium? 4. What is the cost of a draf on Chicago for $800, at 30 days, the discount being 1%, interest 7%? 5. Find the cost of the following draft at 3% premium, interest at 6%. $500. Philadelphia, January 1, 1877. Sixty days after date, pay to the order of Edward Walton, five hundred dollars, value received, and charge the same to my account. WILLIAM JOHNSON. TO JAMES MACINTOSH & Co., New York. CASE II. To find the face of a draft. 1. Bought a draft in Kansas City on Philadelphia, payable in 60 days, for $2536.25; what was the face of the draft, exchange being 21% premium, interest 6%? = ANALYSIS.-$1.025 cost of $1 at sight. $.0105= bank discount on $1 for 63 days. $1.025-$.0105 $1.0145, cost of $1 at 63 days. $2536.25 ÷ 1.0145= $2500, face of draft. RULE. Divide the given cost by the cost of $1. 2. What is the face of a sight draft, purchased for $690.20, premium at 11%? 3. What is the face of a sight draft, purchased for $1449.05, discount at %? 4. Bought a draft on Chicago for $1430.65, payable in 90 days, discount 1%, interest 7%; what was the face? 5. Bought a draft on Philadelphia for $2049, payable in 60 days, premium 31%, interest 6%; what was the face? FOREIGN EXCHANGE. Foreign Bills of Exchange are drawn in sets, consisting of three bills of the same tenor and date, called the First, Second, and Third of exchange, respectively. These are sent by different mails, in order to save time in case of loss or miscarriage, and when either of the three has been paid the others are void. Sterling Bills are bills of exchange drawn on England, Ireland, or Scotland. The rate of exchange, commercially called the par of exchange, between the United States and Great Britain, has been fixed at $4.8665 for the value of £1 sterling. CASE I. To find the cost of a bill on England. 1. What is the cost in currency of a bill of exchange on London for £200 10 s., exchange at par, and gold at 106? ANALYSIS.-£200 10 s. = £200.5. $4.8665x200.5= $975.73, cost in gold. $975.73 x 1.06=$1034.27, cost in currency. |