(2) What amount of stock, at 84g, including brokerage, may be bought for $9393.374? Since $0.84, or 0.84ğ of $1, buys $1 stock, the amount bought for $9393.37 will be $9393.37 0.84 $11,100. $11,100. Ans. (3) What is the quoted price of stock when $42,464.25 is paid for $46,600 stock? $46,600 stock costs $42,464.25. $1 stock costs 4600 of $42,464.25 = $0.91. 911. Ans. Ex. 153. 1. Find the cost of $5000 stock, at 98. 2. Find the cost of $7800 stock, at 781. 3. Find the cost of $20,000 stock, at 1097. 4. Find the cost of $5000 United States 4% bonds, at 121. 5. Mr. Jones owns 20 United States 4% bonds of $1000 each. The interest on these bonds is paid quarterly. How much interest does Mr. Jones receive every quarter? 6. Find the cost of 20 shares of Boston and Maine Railroad stock, at 174. 7. How much of United States 4% bonds may be bought for $6305, at 1211? 8. How much of Northern Pacific 6% bonds, selling at 102, may be bought for $10,275 ? 9. How many shares ($100 each) of Old Colony Railroad, at 137, may be bought for $1650? 10. How many shares of railroad stock, at 911, may be bought for $8474.621? 11. What must be the price of stock in order that $9200 stock may be bought for $8970 ? 12. What must be the price of stock in order that $11,600 stock may be bought for $8729? 13. If $3000 stock is bought for $2748.75, what is the price of the stock? 14. What income will be derived from $15,000 of 5% bonds? 15. Find the income from $9000 of 6% stock. 16. How much will a person receive from $18,800 railroad stock, if a dividend of 7% be declared? 17. What income will be derived from $30,000 of 4% bonds? Ex. How much 4% stock must be bought to give an income of $320? Since $0.04 is derived from $1 stock, $320 will be derived from $320 0.04 = $8000. $8000. Ans. 18. How much 4% stock must be bought to give an income of $2400? 19. A person receives $343 as his quarterly dividend from a 7% stock. How much stock does he hold? 20. Find the entire income of a person whose property consists of $6000 of 6% stock and $16,400 of 7% stock. 21. Find the rate of dividend paid by a railroad when a holder of 246 shares receives $1722. 22. Find the rate per cent at which $22,200 will yield a semi-annual return of $999. Ex. If $5125 is invested in 6% stock, at 102, what income will be obtained? $1 stock costs 1.025 of $1. Hence $5125 will be the cost of $5125 ÷ 1.025 = $5000 stock. And 6% of $5000 = $300. $300. Ans. 23. Find the income on $39,000 invested in 4% stock, at 91. 24. Find the income on $7000 invested in 4% stock, at 1031. 25. Find the income on $13,600 invested in 7% stock, at 130. 26. A person invests $14,280 in railroad stock, at 1274. What will he receive if a dividend of 31% be declared? 27. Find the income on $14,000 when invested in 8% stock, at 1034. Ex. If a person buys 5% stock at 120, what rate of interest. does he receive on his money invested? $100 stock costs $120. $100 stock pays $5. Hence the $120 invested yields $5. 28. If an 8% stock is worth 150, what rate of interest will a purchaser receive on his money? 29. If a 10% stock is worth 175, what rate of interest will a purchaser receive on his money? 30. If a 9% stock is worth 170, what rate of interest will a purchaser receive on his money? 31. If a 4% stock is worth 70, what rate of interest will a purchaser receive on his money? 32. If a 3% stock is worth 65, what rate of interest will a purchaser receive on his money? Ex. Find the sum required for an investment in a 4% stock, at 98, to produce an income of $200 a year. $4 are received from $100 stock. Hence $200 will be received from X $100 stock $5000 stock. $100 stock costs $98. 200 Therefore $5000 stock will cost 50 × $983 = $ 4925. $4925. Ans. 33. How much money must be invested in 8% stock, at 92, to produce $400 income? 34. How much money must be invested in a 3% stock, at 87, to produce an income of $250? 35. A person bought some bank stock at 107, and received $265 when a 5% dividend was declared by the bank. How much money had he invested? 36. A person buys some 6% railroad stock at 75, and receives $750 income. How much money has he invested? Ex. What must be the price of a 5% stock in order that a buyer may receive 6% on his investment? $100 must be invested to produce $6. Hence = of $100 $83 must be invested to produce $5. Therefore the price of the 5% stock must be 833. 831. Ans. 37. What must be the price of a 6% stock in order that a buyer may receive 7% on his investment? 38. What must be the price of an 8% stock in order that a buyer may receive 6% on his investment? 39. A person invested $5710 in bank stock when the stock was at 142. What per cent dividend is declared, if he receives $300? 40. A person receives 5% interest on his money by investing in some six per cent stock. At what price did he buy it? 41. What must be the price of a 7% stock in order that a buyer may receive 6% on his investment? EXCHANGE. 242. A draft or bill of exchange is a written order directing one person to pay a specified sum of money to another. 243. A time draft is a draft payable at a specified time after sight (or date). When the person on whom a draft is drawn accepts a draft, he writes the word "Accepted," with the date, across the face, and signs his name. The draft is then called an acceptance, and the acceptor is responsible for its payment. An acceptance is of the nature of a promissory note, the acceptor and maker having respectively the same responsibility for payment as the maker and indorser of a promissory note. 244. The system of paying debts due to persons living at a distance by transmitting drafts instead of money is called exchange. When a draft can be bought for its face, it is said to be at par. When the cost is less than the face, it is said to be at a discount; and when the cost is more than the face, it is said to be at a premium. |