What is the amount For early payment a

4. A milk depot is assessed at $7800. of the taxes at the suburban rate? discount of 1% is allowed. What is the net amount of the bill?

5. Henry Robbins owns a city house assessed at $9500, and a country house assessed at $5250. At $1.50 city rate and $1.00 rural rate, what is his tax bill?

6. A real estate company owns three plots of land, one in the city assessed at $22,000, another in the suburbs assessed at $7000, and a third assessed at $16,400, farm rate. What is the total amount of the taxes for the year?

7. A property owner's tax bills for the last five years were $370.10, $384.20, $295.05, $377.40, $369.25. By paying these within the time limit of two months, he secured a 1% discount. What amount did he save?

8. What is the amount of taxes on the following properties at city rates; at suburban rates; at rural rates?

9. A company owns three parcels of land in three different cities: one parcel is assessed at $25,000; another is assessed at $8500; a third is assessed at $50,000. If the tax rates in these cities are respectively $1.77, $1.80, and $1.84 per $100, what is that company's total tax?

10. What is the tax rate in a certain city if the tax is $66.30 on a piece of property assessed at $4250?

11. If the tax rate in a certain town is $1.26 per $100, what should a man pay whose house is assessed for $6500 and his factory for $12,500?

12. If the tax on $3500 is $64.75, what is the rate?

GENERAL WRITTEN PROBLEMS

1. At Thanksgiving time, a merchant sold 40,000 lb. of turkey at 37¢ a pound. What was the amount of his commission at 2%?

2. A room has a hardwood floor 12 ft. by 15 ft., partly covered by a rug 9 ft. by 12 ft. At 2¢ a sq. ft., what is the cost of varnishing the part of the floor not covered by the rug. (Allow 6 inches under rug, all around, to be varnished.)

3. An investor paid $6840 for a frame building. He spent $160 in repairs, and sold the house at an advance of 25% on the entire cost. How much did he gain? What was the selling price?

4. A newsboy bought papers for 1 each and sold them for 2¢ each. What was his gain per cent and his total gain in selling 56 papers?

5. What is the commission at 21% earned for selling 340 bu. wheat at $1.20 per bushel?

6. A baker formerly paid $4.85 for a bbl. of flour. If the fiour has advanced in price to $7.82, what per cent more is he paying per bbl.?

7. A warship makes the following record in 4 hours: first hour, 19.5 mi.; second hour, 21.75 mi.; third hour, 22.2 mi.; fourth hour, 22.9 mi. What is the average hourly speed?

8. An agent charged 2% commission and $56.40 expenses for selling grain. He sent to his principal $1477.30. For what sum was the grain sold?

9. What is the difference between 1% of $8000 and 50% of $8000?

10. What will it cost to dig a cellar 60 ft. long, 30 ft. wide and 8 ft. deep, if the excavating costs 50¢ a cu. yd.?

11. A dealer in books bought 240 readers @ 42¢, and 320 geographies @ $1.10. If he is allowed a discount of 8% and another of 2% for cash, what is the net amount of the bill? 12. A merchant gained 121% by selling 48 yd. of silk for $4.50 more than it cost him. What did he pay a yard

for the silk?

13. Standard silver is composed of 37 parts of pure silver and 3 parts of copper. What per cent of the whole is each of these components?

14. A buyer is offered one discount of 50% or successive discounts of 30, 20, and 10%. Which is the better offer for him to accept, and how much does he save on his bill by choosing it? What would be the difference on a bill of goods listed at $3500?

15. Insert names, dates, and items and find the balance on hand in this account: On hand, $127.30; receipts, $75, $46.50, $21.75; payments, $50, $26.30, $14.90.

16. A man bought a farm of 196 acres for $9800 and after spending $980 for improvements sold the farm at $66 an acre. What was his per cent of gain?

17. Mr. Brigham bought an automobile tire that was guaranteed for 3500 mi. At the end of 21 wk., the tire gave out, being 1050 mi. short of the guarantee. What was the average number of miles per week the tire was used? What was the per cent?

18. A dealer's inventory shows that he has 488 cases of tomatoes; if this is 22% more than he had at his last inventory, what did he have then?

19. In a certain year, the taxes on a piece of property assessed at $7500 was $1.85 per $100. The next year, the tax rate was $.70. What was the difference in the tax?

20. A man in the suburbs paid $4275 for a house. If he sold it at an advance of 4%, what did he gain?

III. HOW MONEY EARNS MONEY: INTEREST

Borrowing and Lending. Business men very often have occasion to borrow money in order to buy a new line of goods, to expand their business, or to erect new buildings. By furnishing good security, they obtain the money they require from banks and trust companies. The bank virtually “hires out " the money to the borrower, and charges a certain percentage for the use of it, somewhat as rent is charged for the use of a building for a certain period.

Money that is paid for the use of money is called interest. For example: if a man borrows $900 at a charge, or rental, of 5% of the $900 for one year, he is said to pay interest at 5%, or 5% interest.

The money which the banks and trust companies lend is taken from the sums placed in their charge as deposits. They pay interest to depositors and receive interest from borrowers who of course pay the banks a higher rate than the banks pay the depositors.

The sum for the use of which the interest is paid is called the principal. The rate is the percentage or number of hundredths which the interest is of the principal. 6% is the most common rate; that is, for the use of $1 for a year a man pays 6% of the $1; or 6. For the use of $1 for 3 years, a man pays 3 times 6% of $1, or 18¢.

The time is the period in years or parts thereof (months, days) that the loan runs and "earns" the interest. The principal plus the interest is the amount.

A man borrows $2400 for 2 years and 4 months to use in expanding his business. He agrees to pay 6% interest for the use of this money; that is, 6 cents a year for the use of each dollar.