EXAMPLE 3. To find the cost of £ 672 10 4 Stock at 88%. N. B. For the Brokerage, reckon 2 s. 6 d. for every £ 100 Stock, 3 d. for each £ 10 Stock, and 1 d. for any quantity of Stock from £1 13 4 to £ 5, 2 d. from £5 to £ 8 6 8, and 3 d. above that sum. EXERCISES TO EXAMPLE 1. Find the cost of £ 700 Stock at 813. EXERCISES TO EXAMPLE 2. Find the net proceeds of £ 857 Stock at 80. EXERCISES TO EXAMPLE 3. Find the cost of £ 6172 10 0 Stock at 841. Products. £ 570 10 0 416 16 3 498 1 6 £ 684 10 7 107 4 2 947 19 10 £ 5200 6 8 2339 11 7 4098 19 10 INSURANCES. Fire and Sea Insurances are contracts by which the insurers agree to pay to the assured the value of the property that may be destroyed or damaged by accidents, against which the Insurances are made. Life Insurances are contracts to pay the assured a specified sum of money, upon the death of the person or persons named in the contract. The deed of contract is called a Policy, and it is required by law that every Policy should be upon stamped paper or parch ment. The amount of the remuneration paid to the insurers is called the Premium, and it is reckoned by a per centage upon the amount insured. Ex. 1. To find the amount of a Fire Insurance on £ 1200 at 2 s. 6 d. per cent., with the Duty on the same at 3 s. per cent. £ 1200 at 2 s. 6 d. — £1 10 0 Premium. N. B. It is not usual for the offices to charge for the Policy Stamp on Fire Insurances, when the Insurance amounts to £ 300 and upwards. Ex. 2. To find the amount of a Sea Insurance on £ 578, at 12 s. per cent., with the Policy Stamp at 1 s. 3 d. per cent., on £ 600. N. B. The Stamp or Policy Duty for any part of £ 100 is the same as for £ 100, and the rate varies according to the rate of the Premium, and to whether the Insurance is foreign or from one part of the united kingdom to another. . Multiply 36 by 12 and cut off the two lower figures in the product. Ex. 3. To find the amount of the yearly payment for the whole life, for insuring £ 2000 at £ 4 15 3 per cent., and the amount of the first payment, including £ 3 for the Policy Stamp. N. B. The rates of the premium for Life Insurances vary at different offices according to the age of the life insured, and to whether the Premium is engaged to be paid for only one year, for a specified term of years, or for the whole life. The rate of the Policy Stamp is according to the amount insured, and is charged to the insured on the first payment. EXERCISES TO Ex. 1. FIRE INSURANCES. What is the amount to be paid for premium and duty, What is the amount to be paid for insuring £ 1000 at 5 s. per ct., Policy 1 s. 3 d. per ct.? Ans. £ 3 26 £ 1450 at 30 s. per ct., Policy 2 s. 6 d. per ct.? £2356 at 2 gs. per ct., Policy 5 s. per cent.? EXERCISES TO Ex. 3. LIFE INSURANCES. £ 23 12 6 £ 55 96 What is the amount to be paid yearly for insuring For further Exercises and much further information on the subject of Sea or Marine Insurances, see the Appendix. FOREIGN EXCHANGES. The calculation of a foreign exchange, is the finding of what sum in the money of one country is equal to a given sum in the money of another country. A rate of exchange is the price at which the valuation is made. A course of exchange is a list of the prices or rates of exchange, at which bills of exchange are negociated at the given place. A bill of exchange is a written order for the payment either of the money it directs, or the amount of that money at a given rate of exchange. Explanation of a London Course of Exchange. London, March 26 th, 18 London receives for 1 £ Sterling from N. B. Of the two terms forming the rate of exchange, the variable term is in foreign money in the rates of the first places in this course, and in Sterling money of the rest. GENERAL RULE FOR THE CALCULATION OF FOREIGN EXCHANGES. Make a statement of a proportional question, placing the sum to be exchanged as the third term of the question, that part of the rate of exchange which is of the same money as the first term, and the other part of the rate as the second term; then when the fixed term of the rate is the first term, the calculation may be worked by Multiplication or by Practice; but when the variable term of the rate is the first term, it can be only made by the Rule of Three. N. B. In quotations of exchange rates it is usual to give only the variable prices. FRANCE. 100 Centimes make 1 Franc. The value of the Franc is about 9 d. Sterling, making the par of exchange about 25.26 Frs. per £ Sterling. Ex. To exchange Francs 20280.00 into Sterling at 25.35. Frs. 25.35 X 800 Frs. 20280.00. Ex. 1. Exchange £ 250 into Francs at 25.70. 2. Exchange £ 96 10 6 into Frs. at 25.55. 3. Exchange Frs. 8000 00 cts. into Sterling at 25.30. 4. Exchange Frs. 7138 64 cts. into Sterling at 25.65. A par of exchange is the rate of exchange produced from the valuation foreign coins. For the products of the Exercises see page 129. |