3500, EXAMPLES 1. What is the interest of 500 dollars för 1 year 3m. and. 15 days, at 6 and 7 per cent? $38,75 cts. Om. interest at 6 per cent Ans. $45,20 cts. 8m. interest at 7 per cent, y. mo. d. 1 3 15 s 3ds. Or, 75 for a decimal. 3ds.=?)$500 $ 500 7,7 7,75 3500 or thus, 2500 3500 3500.- 6,45,8--6 per cent. 6,45,08 6 per cent. Ans. $45,20,8. in't. at ang Ans. $45,20,08 interest at 7 per per cent. cent. DEM.-It is plain, when we multiply by half the even number of months, we do the same as multiplying by the per cent, that is, 6 per', cent; for suppose the number of months were 12, then half the number would be six, the same as the per cent, that is, 6 per cent, and suppose we call the odd month 30 days, and divide by 6, the quotient would stand as 5 tenths of two months ; hence the reason of the rule is manifest. Note I.-If the interest of 500 dollars, in the preceding example, had been required at 5 per cent, then the $6,45cts, and 8 mills, should have been deducted from $38,75 cents; the remainder would have been the interest at 5 per cent. Note II.-Where there are days, of a number less than 6, so that 6 cannot be contained in them, put a cipher in the place of the decimal, at the right hand of che months in the multiplier, sc that the quotients, when the multiplicand is divided for the days, may stand in theit proper place. 2. What is the interest of $300,50 cents for 2 years, 5 months, and 9 days, at 7 per cent ? Ans. $51,36cts. Commission and SIMPLE INTEREST. Factorage.] 159 COMMISSION, OR FACTORAGE, Is an allowance of a certain per cent, to a Factor or Person engaged in buying and selling goods for his employer. A Factor is an agent employed to transact business for another. The work is precisely the same as casting the interest on the same sum for one year; but the Factor can only receive for his services from his employer, the per ceitt: on the sales or purchases which he has made, thus, if the Factor buys or sells goods to the amount of one hundred dollars, at three per cent, he receives only three dollars for his services, and the remaining part of the gain, if any, goes to his employer. EXAMPLES 1. What may a factor demand from his employer, when he sells goods to the amount of $1000, and is allowed 31 per cent for his services ? Ans. $35. $1000 The learner will perceive, thąt the operation of 31 the work here, is exactly the same as computing in terest on one thousand dollars for one year, at 3) per 3000 cent, and 35 dollars is what the factor receives for 500 his services for selling the goods for the benefit of his employer. Ans: $35,00 2. What will the commission of 500 dollars come to at 51 per cent ? Ans. $27,50cts. NOTE--Commission here means the premium arising from the per cent on the given sum, which is the reward for the agent's services. 3. Required the commission of fifteen hundred dollars, at 3 per cent. Ans. $45. 4. What may a factor demand for laying out $1200, mission at 25 per cent? Ans. $30. com BROKERAGE, Is an allowance of a certain per cent, to persons assisting merchants or factors, in their purchases and sales. The work is performed the same as in Simple Interest, where înterest is to be computed for one year; and the Broker receives his per cent for his services; thus, if he assists his employer in buying or selling goods to the amount of one hundred dollars at 3; per cent, he receives three dollars and fifty cents for his services. EXAMPLES. 1. What is the brokerage upon 1500 dollars, at 14 per cent? Ans. $22 50cts. 160 [Brokerage. SIMPLE INTEREST. Ensurance.] 2)1500 NOTE.-A Broker is one that a3. 12 sists another in buying or selling 1500 goods. Brokerage is the allowance 750 or premium given to the broker for his services. Ans. $22,50cts. 2. A broker sold goods to the amount of $6000, at 1 per cent; what was his demand against his einployer ? Ans. $60. 3. A broker made sale of goods to the amount of $3000, at per cent, what was his deinand? Ans. $15. 4. A broker bought goods to the amount of $1000, at 17 per cent; what must he receive for his services? Ans. $17,50 cents. ENSURANCE, Is a premium, at a certain per cent, allowed to persons and offices, for indemnifying against loss of property of any description, such as houses, ships, merchandise, &c. which may happen from fire, storms, &c. Policy is the name given to a writing by which the contract of in. demnity is binding upon the parties. The premium is paid to the ensurers, by the ensured, who receives the amount of his ensurance in case of loss from fire, from storms, &c. unless he has broken his policy or indemnity, by his own wrong. The method of operation is the same as in Simple Interest for one year. EXAMPLES. 1. What is the premium on 1500 dollars, at 8 per cent ?' Ans. $120. $1500 The learner will understand, that if the en 8 surers indemnify against loss to the amount of $120,00 1500 dollars, in case of loss they must pay the person having his property ensured, the 1500 dollars, and the ensurers receive 120 dollars, whether there be loss or not. 2. A man's house, valued at 4000 dollars, was ensured against fire for 14 per cent a year; what ensurance did he pay annually? Ans. $60. 3. What is the ensurance of a vessel and cargo, valued at $90146,46ctş. at 8.3 per cent ?" Ans. $7662,44cts. 9m. BUYING AND SELLING STOCK. Suck is the name of the capital of trading companies, or of a fund established by government; the value of which frequently varies. The operation of the work is the same as in Simple Interest; thus, if bank or other stock be worth 75 per cent, 100 dollars stock would be worth 75 dollars; and 1000 dollars stock would be worth 750 dollars, which is obtained by multiplying the stock by the per cent; the product is the worth of the stock. EXAMPLEŞ. 1. Required the value of 1500 dollars of bank stock, worth 75 per cent ? Ans. $1125. 1500 NOTE. In the last ope50-1) 1500 dollars. ,75 ration, we multiply by 25=*) 750 or thus, 7500 ,75 cents, because $1 is 375 10500 worth only ,75 cents, and in the first operation we $1125 2. What is the value of 500 dollars of stock, at 95 per Ans. $475. 3. What is the value of $200 dollars of stock, at 107 per cent? Ans. $214, 4. What is the value of 1500 dollars of bank stock, at 60 Ans. $900. $1125,00 take parts. cent? per cent? COMPOUND INTEREST, Is that which arises from the principal and interest added together, as the interest becomes cue; and for tħis reason it is called Compound Interest. RULE.-Find the amount of the given sum for the first year the same as in Simple Interest, which will be the principaf for the second year; then find the amount of that principal for the second year, and that wilt be the principal for the third year; and so on for any number of years. From the last amount subtract ihe given principal, the remainder will be the compound interest. This rule is founded on the following principle: That interest becomes due at the end of each year, at which time it becomes a part of the principal, if it remains in the hands of the borlower; this is not, however, allowed by law; yet in purchasing annuities, pensions, or leases in reversion, it is usual to allow Compound Interest to the purchaser for his ready money. NOTE. In our rule we have considered the interest to be due annually, and then becoming a part of the principal; but other periods of time are sometimes reckoned, as half-vearly, quarterly, &c. and then the interest is computed for every six monttar, or for every quarter of a year, and at the end of each period becomes a part of the principal, carrying interest for the next period. EXAMPLES. 1. What is the compound interest of $1000, for 3 years, at 7 per cent ? Ans. $225,04cts. 3ın. $1000 Principal. NOTE.-The learn. 7 Per cent. er will perceive, that 70,00 Int. for 1 year. compound interest is 1000 casting interest, at the end of each year, on the amount. year. year. 1000 Principal deducted. $225,0 4,30 Compound Interest of $1000 for 3 years. 2. What is the compound interest of $750 for 4 years, at 6 per cent? Ans. $196,85cts. 7m. 3. What will $250 amount to in 3 years, at 7 per cent, compound interest ? Ans. $306,26cts. 4. What will £50 amount to .in 5 years, at 5 per cent per annum, compound interest ? Ans. £63 16s. 3 d. QUESTIONS ON. INTEREST. What is interest ? A. An allowance or premium of a certain per cent for the use of money. What is the principal ? A. The money lent. What is the amouni? A. The principal and interest added to gether. What is the rate ?' A. The per cent paid by the borrower to the lender for the use of money, What is meant by per cent ? A. It means a certain number of dollars for the use of a hundred dollars, or a certain number of cents for the use of one dollar, or one hundred What is the per cent in the New England States A. Six. What is the per cent allowed by law in New York? A. Seven. How many kin.ls of interest are there? A. Two, Simple and Compound. What is Simple Interest ? A. That which arises from the principal cents, |