Ex. 12. What is the compound interest on $600 at 6 per cent. per annum for 20yr.?

$2.20 7 1 3 5

600

= Int. of $1 for 20yr. taken from the Table.

$ 1 3 2 4.2 81000: =Int. of $600 for 20yr. — Ans.

13. What is the compound interest on $30 at 6 per cent. per annum for 5yr. 6m.?

$11.3 5 11 8 3 4 0 = Int. of $30 for 5yr. 6m. Ans.

14. What is the amount of $50, at 7 per cent. per annum, for 15yr. at compound interest?

$2.7 5 9 0 3 2

50

Amount of $1 for 15yr.

$137.9 5 1600= Amount of $50 for 15yr. — Ans.

15. What is the amount of $350.50, at 8 per cent. compound interest, for 18yr. 7m. 12d.?

Ans. $

16. What is the interest of $500, at 8 per cent. per annum, compounded semi-annually for 9yr. 6m.? Ans. $553.425.

17. What is the amount of $1000, at 16 per cent. per annum, interest compounded quarterly for 3yr. 6m. 12d.?

217. COMMISSION is a compensation made to an agent for transacting certain kinds of business, such e. g. as buying and selling goods, collecting and loaning money, etc.

218. This compensation is usually so much per cent. on the money collected, lent, expended, etc.

Hence,

RULE. Multiply the sum collected, lent, expended, etc., by the rate per cent.

Ex. 1. What shall I pay my agent for selling $1350 worth of goods, his commission being 2 per cent.? Ans. $27.

2. What shall I receive for collecting $5725, my commission being 3 per cent.?

3. The taxes in the town of A for the year 1855, were $18000. What was the cost of collecting them, of 1 per cent. commission being allowed? Ans. $36.

4. My agent has lent for me $6350. His commission is of 1 per cent.; what shall I pay him?

5. An agent has purchased goods for his employer to the amount of $3484.50. What does his commission amount to, at 1 per cent.?

6. My agent has sold 34 cases of Rubber Shoes, containing 100 pairs each, at 75 cents per pair. His commission being 1 per cent., what shall he retain for his services and what shall he pay over to me?

Ans. His commission, $38.25; my due, $2511.75.

7. My agent in New Orleans has bought 500 cwt. 3qr. 124lb. of sugar at $9 per cwt.; to what does his commission of 3 per cent. amount?

8. Having sold 3560lb. of tea at 37 ct., what is my commission at 2 per cent., and how much money shall I remit to my employer?

§ 20. INSURANCE.

219. INSURANCE is security against loss of property by fire, shipwreck or other casualty; or against loss of life or health by disease or disaster.

220. The sum paid for the insurance is called the premium, and is usually a certain per cent. on the sum insured. The per cent. varies according to the nature of the property, or the age, etc., of the person insured.

Insurance against loss by fire varies from about 3 of 1 per cent. up to 5 per cent. or more; and some property is so hazardous that Insurance Companies decline taking the risk at any per centage.

221. To prevent fraudulent destruction of property, Insurance Companies will usually insure property for only about or its value, requiring the owner to risk the remainder. Property insured at one office may be insured at another by consent of the first insurers, but not so that the aggregate insured at the different offices shall exceed that portion of its value which a single office is accustomed to insure.

222. A person who gets insured in a Mutual Insurance Company thereby becomes a member of the company, and, to some extent, liable to pay the losses of the company. He pays the premium when he effects the insurance, and also gives his note for 5 times the premium, and this note is the basis for assessments, if the losses of the company require assessments to be made. The law also allows assessments to the extent of twice the face of this note; so that the insured is liable to pay 10 times the original premium in addition to that premium; yet a well conducted company is as likely to pay a dividend as to make Besides this, the premium in a mutual company is usually much less than in other companies, being not more than from to 2 per cent. for a period of 5 years.

an assessment.

223. The writing or record of the contract given by the insurers to the insured is called the policy.

224. The insurers are frequently called the underwriters, especially in marine insurance.

225. To calculate the premium,

RULE.-Multiply the sum insured by the rate per cent.

Ex. 1. What is the cost of insuring $5000 on my house for 1 year, at of 1 per cent, the policy being $1.25?

Ans. $11.25. 2. What is the annual premium for insuring a manufacturing establishment in the sum of $500,000, at 2 per cent.?

3. Effected insurance on my ship, the Rover, bound to Canton, for $21500, at 31 per cent. What is the premium ?

4. My agent at Liverpool informs me that he has shipped to me goods valued at 534£ 10s. 6d. I have effected insurance on this sum at a premium of 12 per cent. What must I pay, including $1.25 for the policy, the pound being worth $4.87?

Ans. $46.805.

5. What will be the annual premium for insuring $12000 for 7 years on the life of a man 25 years of age, in the Massachusetts Hospital Life Insurance Company, the premium being .97 of 1 per cent. annually? Ans. $116.40.

6. What will be the annual premium for insuring $5000 for 10 years on the life of a man 30 years of age, the premium being 1.09 per cent.?

7. What is the premium on $3000, insured the Andover Mutual Insurance Company, at period of 5 years?

on my house by

per cent., for a

Ans. $15.

8. What is the premium for insuring 437£ 16s. 3d., at 21 per cent., the pound being worth $4.87 ?

13*

§ 21. DISCOUNT.

226. Notes and other obligations are frequently made payable at a specified time, without interest.

DISCOUNT is an abatement or deduction made for the payment of such debt before it is due.

227. The present worth of a debt is, evidently, a sum which, put at legal interest, will amount to the debt at the time of its becoming due.

228. The rule for finding the present worth is that given in Prob. 4, Art. 210; viz.:

Divide the given sum by the AMOUNT of $1 for the given rate and time.

229. The DISCOUNT is found by subtracting the present worth from the face of the debt.

Ex. 1. What is the present worth of a debt of $100, payable in one year, without interest?

1.0 6)$ 1 0 0.0 0 ($9 4.3 3 9+Ans.

954

460

424

360

318

420

318

1020

954

66

Present worth, discount and debt correspond to principal, interest and amount. Having the principal, we obtain the amount by multiplying the principal by the amount of $1. Conversely, dividing the amount by the amount of $1, gives the principal. Hence the rule.

2. What is the present worth of $756, payable in 1yr. 4m.?

Ans. $700.

3. What is the discount on $475, due in 6m. and 18d?

Ans. $15.175.