11. How many U. S. 5-20 bonds of $500 each, at 108, can I buy for $21600? 12. I buy 80 shares of oil stock, at $28, and sell it at $35; what % do I gain on my investment, and what is the entire amount gained ? 13. A broker bought stock at 3% discount, and sold it at 12% premium, thereby gaining $900; how many shares did he purchase? 14. I sell six $500 government bonds, at 121% premium, and invest the proceeds in railroad stock, at 25% discount; how many shares of the latter do I receive? 15. What will 5 shares of mining stock cost when quoted at 109? 16. My broker bought me 30 shares of railroad stock, at 84, and sold the same for me, at par; how much did I gain, the brokerage in each transaction being %? TAXES. A Tax is a sum of money assessed upon persons or property, for public purposes. A Poll or Capitation Tax is a tax upon the person of a citizen. It is a certain specified sum, varying in different localities, and assessed upon each person not exempt by law. A Property Tax is a tax assessed upon property, and is a certain percentage of its valuation. Property may be divided into two classes : Real Property or Real Estate, consisting of houses, lands, etc., and Personal Property, consisting of movable property, such as money, furniture, tools, etc. his property tax being dollar pr WRITTEN EXERCISES. 1. A tax of $48650 is to be assessed upon a town; the valuation of the property being $2432500; what is the rate ? 2. What is the amount of tax paid by a resident of the above town, his property, worth $24000, being assessed at of its value, and his poll tax being $1.50? 3. A tax rate of 21 cents on the dollar produces $65000; what is the assessed valuation of the property? 4. At a tax rate of 2 mills on the dollar, find the rate % and the amount of taxes paid on a property assessed at $2800. 5. The tax rate of a certain city is 24%, and the assessed valuation of property $200000000; what is the amount to be raised by taxation ? 6. A school district wishes to raise such an amount by taxation as will secure $2850, for building purposes, after deducting the collector's commission of 5%; the assessed value of the property being $300000, what is the rate? DUTIES OR CUSTOMS. The revenue of the U. S. Government is derived from taxes on manufactures, licenses, etc., called Internal Revenue, and from Duties or Customs. Duties or Customs are taxes upon imported goods. These taxes are collected at an office established by the government, called a Custom House, and a place containing a custom house is called a Port of Entry. Duties are of two kinds-Specific and Ad Valorem. A Specific Duty is a certain tax imposed upon an article without regard to the cost. An Ad Valorem Duty is a certain percentage of the value of the goods, according to the Invoice. An Invoice is a bill of goods from the seller to the importer, with prices and charges annexed. Before calculating duties, certain allowances are made if necessary; these are Tare, Leakage, and Breakage. Tare is an allowance made for the weight of the box, cask, etc., containing the goods. Leakage is an allowance for waste of liquors imported in casks, barrels, etc. Breakage is an allowance for loss of liquors imported in bottles. Note.-- Actual breakage or leakage only is allowed; the allowance being determined by gauging or counting. The entire weight or value of the goods before any deductions are made, is called the Gross Weight, or Gross Value. The Net Weight or Net Value, is that which remains after the deductions are made. WRITTEN EXERCISES. 1. A sugar refiner imports 80 hogsheads of sugar, the gross weight of each hhd. being 450 lb.; what amount of duty did he pay, at 2 cents per lb., the tare being 121 %? 2. A merchant imports 25 casks of French brandy, each cask invoiced at 36 gallons; what is the duty, at 50%, the price of the brandy being $4 per gallon, and an allowance of 14% being made for leakage? 3. I import 340 bags of Rio coffee, the gross weight of each being 55 lb.; what is the duty, at 5 cents per lb., the tare being 2%? 4. What is the duty, at 21 cents per lb., on 48 casks of raisins, gross weight 134 lb. cach, tare 12%? 5. What is the duty on 250 tons of steel rails, at 11 cents per pound? 6. The duty, at 60%, on 4000 yds. of silk grenadine was $3600; what was the invoice price per yard ? 7. The duty on 1200 yards of Brussels carpet, invoiced at $1.70 per yd. is $724; what is the rate %? INSURANCE. Insurance is indemnity against loss. The principal kinds of Insurance are Fire, Life, Marine, Accident, and Stock, (cattle, horses, etc.) A Policy of Insurance is a written contract between the insurers and the insured. A Premium is an amount paid to secure an insurance, and is a certain percentage of the sum insured. WRITTEN EXERCISES. 1. What premium, at 2%, must be paid for an insurance of $6400, on a house? 2. A merchant insures a ship and cargo, worth $96000, for å of their value; what is the premium at 21 %? 3. I take out a life insurance policy for $10000; what is my first premium at 31%? 4. My premium for an insurance of $4500 is $112.50; at what rate am I insured ? 5. A property is insured for $2050, which covers of its value, and the premium thereon at 21%; what is the value of the property? INTEREST. Interest is the money which is paid for the use of money. The Principal is the sum for the use of which interest is paid. The Rate is the per cent of the principal paid for any given time. Note.—When no time is mentioned, per annum, or by the year, is understood. The Amount is the sum of the principal and interest. Simple Interest is the interest on the sum loaned, for the given time, at the given rate. Legal Interest is the interest according to a certain rate per annum, fixed by law. Note 1.-A higher rate of interest than that prescribed by law, is termed usury, and is prohibited by law. Note 2.—When the rate per cent. is not named in notes, or other business documents, the legal rate must be taken. Note 3.-In most of the States, and on debts due the United States, 6% is the legal rate, although in some States a higher rate may be agreed upon by special contract. CASE I. The principal, rate, and time, being given, to find the interest or amount. ORAL EXERCISES. 1. What is the interest on $100 for 5 years, at 5% per annum? ANALYSIS.-5% of $100=$5; which is the interest for 1 year; and the interest for 5 years is 5 times $5= $25. 2. What is the interest of $50 for 7 years, at 6%? |