6. If by selling two articles at $10 each I gain on the first 25% and on the second lose 25%, do I gain or lose? 7. By selling sugar at 7 cents a pound I gain 163%; what is the cost of the sugar? 8. An investment pays a profit of $200 at 8%; what would it pay at 91% ? 9. A miller had 50 barrels of flour worth $6 a barrel: 10 barrels were destroyed by fire; how must he sell the remainder to clear 8% on the lot? 10. A gentleman bought a watch for $56, which was 20% less than its value; how must he sell it to gain 10% on its value? COMMISSION AND BROKERAGE. 1. An attorney collects a debt of $400 on a commission of 3%; what is his commission? SUG. His commission is 3% of $400. 2. A tax-collector receives a commission of 2% for collecting $8000 taxes; what is his commission? 3. If an agent sell a house for $5000 and charge a 21% commission, what amount does he receive? 4. What is the expense of collecting a debt of $1200 on a commission of 5% ? 5. A commission merchant sells $650 worth of berries on 10% commission; what is his commission? 1. An agent charges $12 for collecting a bill of $240; what per cent. does he charge? ANALYSIS.-If he charges $12 for collecting $240, on $1 he charges a of $12, or 2, equal to 25, or 5%. 12 2. A lawyer collects a debt of $600 for $24; what per cent. does he charge! COMMISSION AND BROKERAGE. 115 3, If a tax-collector receives $54 for collecting $1800, what is his rate of commission? 4. A commission merchant charges $40 for selling $800 worth of produce; what is his rate of commission? 5. If an agent charge $25 for selling a property worth $1000, what is his rate of commission? 1. A tax-collector receives $180 for collecting taxes on a 3% commission; what is the amount collected? ANALYSIS.-3% = = 18; if $180 is 8 of the amount collected, 0 is of $180, or $60, and 188 is 100 times $60, or $6000. 100 2. A commission merchant charges $42 for selling goods on 10% commission; what amount did he sell? 3. An architect charges $40 on a 2% commission for the plans of a building; what is the cost of the building? 4. An agent sells goods on a 4% commission; his salary for the first month is $120; what amount of goods did he sell? 5. An attorney charges his client $60 on a 5% commission for collecting a debt; what is the amount of the debt? 1. What amount of goods can I purchase for $520, if my agent charges me 4% on the amount expended? ANALYSIS.-4%, or, of the amount expended, plus, equals 3, or $520; of the amount expended equals of $520, or $20, and 25, or the amount expended, equals 25 times $20, or $500. 2. What amount of goods can be purchased for $420, if the agent's commission is 5%? 3. If an agent charge me 2% for buying goods, how much will he purchase for $510? 4. I send an agent $315 to purchase goods for me: he charges 5% commission; what amount of goods does he purchase? 116 MENTAL ARITHMETIC. STOCKS. NOTE 1.-When stock is at a premium its market value is the par value plus the premium; and when at a discount, the market value is the par value less the discount. NOTE 2.-When the par value is not mentioned it is understood to be $100 a share. 1. When stock is at a premium of 10%, what is the value of $1 worth? $100? $50? 2. When stock is at a discount of 20%, what is $1 worth? $100? $10? $50? 3. What is the cost of 10 shares of railway stock at 15% premium? 4. What is the cost of 5 shares of railway stock at 20% premium? 5. What is the cost of 10 shares of stock at 10% discount? 1. If I buy stock at 92 and sell at 96, and thereby make $120, how many shares do I buy? ANALYSIS.—If I buy stock at 92 and sell it at 96, I gain on each share $96-$92, or $4; I therefore buy as many shares as $4 is contained times in $120, or 30 shares. 2. A man bought stock at 90 and sold at 85, thereby losing $60; how many shares had he? 3. A speculator bought bank stock at 120 and sold at 127, thereby gaining $840; how many shares had he? 4. If Mr. A buys stock at 92 and is compelled to sell at 88, thereby losing $200, how many shares has he? 1. A company declares a dividend of 6%; how much dividend does Mr. Walters get, if he owns 30 shares? SUG. Since the dividend is $6 on a share, Mr. Walters gets 30 times $6, or $180. 2. If a bank declare a dividend of 5%, what is that man's dividend who has 20 shares of stock? 3. A railway company declares a dividend of 3 per cent.; what is Mr. A's dividend, if he own 80 shares of stock? 4. A manufacturing company declares a dividend of 8 per cent.; what is my dividend, if I hold 40 shares of stock? 1. A company declares a dividend of 4%; how much stock do I own, if I receive $400 dividend? ANALYSIS.—Since my dividend is 4%, or 15, $400 is of my stock; , or the value of my stock, is 25 times $400, or $10,000. 2. If Mr. B's share of a 5% dividend is $200, how much stock does he own? 3. A stockholder in a bank receives $60 as his share of a 3% dividend; how much stock does he own? 4. Mr. Lindsey receives $540 as his share of a 5% dividend; how much stock does he own? 1. If $500 worth of stock earn $30, what rate of dividend may be declared? 30 ANALYSIS.-If $500 gain $30, $1 gains of $30, or %, equal to 180, or 6%. 2. When $800 earns a profit of $40, what rate of dividend may be declared ? 3. What rate of dividend may be declared on stock, if $5000 of it gain $400? 4. 10 shares of bank stock, worth $100 each, pay an annual dividend of $80; what is the rate per cent.? 1. What amount of stock at 10% premium can I buy for $440? ANALYSIS.—At 10% premium, stock is worth $110 a share; hence $440 will buy as many shares as $110 is contained times in $440, or shares. 2. When stock is selling at 30% premium, what amount may be bought for $6500? 3. If railroad stock sells at 25% discount, how much may be bought for $1500? 4. How much stock at 20% premium may be bought for $2400, if the shares are $50 each? INSURANCE. 1. How much will it cost to insure a house worth $3000 at 14% ? SUG. It will cost 14% of $3000, or $37.50. 2. A house was insured for $4000 at 1%; what was the premium, or cost of insuring? 3. What is the premium on a house worth $4500, insured for 5 years at 11% ? 4. If I pay $30 insurance on a $3000 house, what is the rate? 5. A merchant insured his store for $4000, and paid $100 insurance; what was the rate? 6. If I pay $75 insurance on a property worth $5000, what is the rate? 7. Mr. Jenkins insured his furniture at 2% and paid a premium of $20; what is the amount of the insurance? 8. If a man pay $30 insurance at 11%, what amount of insurance does he get? 9. The insurance on a barn at 3% costs $18; what is the amount of insurance? INTEREST. Interest is a certain percentage paid for the use of money. It is estimated at a certain rate per cent. for each year. The Principal is the sum on which the interest is paid. |