36. How much must be invested in city 34's at 8% discount, to secure an income of $350?

37. How much telegraph stock must I sell at 11% discount, brokerage %, to realize $8800?

38. I invested through a broker $5450 in stock at 1.081, brokerage %. How much did I purchase?

39. I sell through a broker enough stock at 43% premium to realize $10475, brokerage %. How much do I sell? 40. What rate of interest do I receive on my investment if I buy 7% stock at 112?

SOLUTION.

- Each share of stock costs $112, and yields $7 interest. $7 is what per cent of $112 ?

41. Stock yielding 7% annually is bought at 1111. What annual rate of income will it yield on the investment?

42. What rate will 6% bonds pay on the investment if bought at 112?

43. What is the rate on Syracuse 4's at a premium of 31% ?

44. What is the rate of income on 6's at 90, no brokerage? 45. Which is the better investment, 6's at par, or 5's at a discount of 121% ?

46. How much must I pay for 5% stock to secure annually 7% on my investment?

SOLUTION. 1 share of 5% stock yields $5 interest annually; this $5 is 7% of the cost of 1 share. Therefore the question is, $5 is 7%

of what?

47. At what price must 5% stock be purchased so that it will yield 4% on the investment?

48. How much must I pay for 5's to make my investment yield 6% ?

49. What must I pay for city 6's that my investment may yield 8% annually?

50. How much must I pay for 1 share of 3% stock, that the dividend may be 4% of the purchase price?

51. How much will be my income if I invest $2300 in 4% bonds at 115?

SOLUTION. 2300 ÷ $1.15

of 2000 ?

=

$2000 par value. How much is 4%

52. What sum invested in Tennessee 6's at 85 will yield an annual income of $1800 ?

53. How much money must I invest in 6% stock at 80 to secure an annual income of $3186?

54. I want an income of $1500. How much shall I invest in 5% stocks at 25% premium to secure that amount? 55. How much must a man invest in a 5% stock at 120 to yield him an annual income of $2500?

MISCELLANEOUS.

318. 1. At what premium should an 8% stock sell to yield a 6% income?

2. A man bought stock at 34% discount and sold it at 2% premium, paying a brokerage of 1% in both cases. His net profit was $680. How much money did he invest?

3. A man invested his money in 6% railroad stocks, and received $300 semi-annually. What was the sum invested?

4. Which is the better investment, and how much, a 4% stock bought at 85, or a 6% stock bought at 120?

5. What rate on the investment do 7% stocks pay when bought at a premium of 8% ?

6. What sum must be invested in U. S. 6% bonds to yield an income of $1000 ?

7. What sum must be invested in U. S. 6's at 92 per share to yield a quarterly dividend of $300 ?

8. At what price should 8% bonds be bought to make the income from the investment equivalent to that from 6% bonds at par?

9. Which is the better investment, 4% bonds at 86, or 6% bonds at 105?

10. How much must I pay for a 4% stock that the investment may yield me 6%? For a 7% stock that the investment will yield 5% ?

11. If 25 shares of stock paying 8% are sold at 150, and the proceeds loaned at 6%, will the income be increased or diminished? and how much?

12. Bought bonds at 125 and sold them at 110, thereby losing $600. How many $1000 bonds did I buy?

13. How many dollars of stock can I buy for $105000 if stock is quoted at 120? How many shares? What per cent do I receive on my investment if the stock bears 6% ?

14. What is the cost of 200 shares of D., L., & W. R.R. at 1621? If it pays a quarterly dividend of 2%, what is the yearly income from this investment? What rate does

it pay on the investment ?

15. B invests $1680 in a stock selling at 112. What does he receive from a dividend of 4% ?

16. An estate derives an annual income of $3600 from stock that pays 7%. How many $25 shares does the estate own?

AVERAGE OF PAYMENTS.

319. 1. The use of $5 for 2 mo. equals the use of $1 for how many months?

2. The use of $10 for 6 mo. will balance the use of $5 for how many months?

SOLUTION. The use of $10 for 6 mo. the use of $1 for 60 mo. The use of $1 for 60 mo. = the use of $5 for of 60

3. How long may $20 be kept to balance the use of $5 for 20 months? $50 for 10 mo.?

4. A credit of $10 for 8 mo. equals a credit of $20 for how many months?

5. The interest of $500 for 1 year equals the interest of $100 for how long? Prove this.

6. I pay a debt of $20 four months before it is due. How long after it is due should my creditor allow a debt of $40 to remain unpaid?

A person owing two debts due at different times may pay both at an intermediate time without loss to himself or his creditor, by paying one of them before it is due and the other an equivalent time after it is due.

320. The process of finding the time when several debts due at different times can be equitably discharged at one payment is called Average of Payments.

321. The date of such payment is called the Average Time, and the time to elapse before the payment is made is called the Average Term of Credit.

NOTE. - The time to elapse before any debt becomes due is called a Term of Credit.

322. When the terms of credit begin at the same date. 1. On Jan. 8, A bought goods on the following conditions:

$300 due in 2 months.

$200 due in 4 months.

$100 due in 6 months.

How long after Jan. 8 may the debt be equitably discharged at one payment?

A credit of $1 for 2000 mo. a credit of $600 for of 2000 mo., or 3 mo. 3 mo. 10 da., average term of credit. Jan. 8+ 3 mo. 10 d. = April 18, equated time.

Short method.

Ans.

NOTE.

3 mo. 10 da.
April 18.

Jan. 83 mo. 10 da.

One-half a day or more is called another day. Less than day, not counted.

Call 50% or more $1.00. Less than 50%, not counted.

Rule.

Multiply each debt by its term of credit.

The

sum of the products divided by the sum of the debts will be the average term of credit.

2. Gates Thalheimer sold a bill of goods on the following terms: $325 due in 60 days, $175 due in 90 days, and $185 due in 4 months. What is the average term of credit? and on what day may the entire debt be paid without loss to either party?

3. A merchant bought $1000 worth of goods, and agreed to pay for them as follows: $100 cash; $300 in 3 mo.; $250 in 4 mo.; and the balance in 5 mo. In what time could he equitably pay the entire amount ?

4. On the first day of April, 1895, a man gave 3 notes, one for $250 due in 30 da., one for $375 due in 40 da., and one for $425 due in 60 da. What is the average term of payment? and when could they have all been paid at once?

5. D. McCarthy & Co. sold goods amounting to $4000, payable as follows: in three months, in 4 months, and the balance in 5 months. What was the average term of credit?