COMMISSION.

COMMISSION is the compensation made to factors and prokers for their services in buying or selling. It is reckoned at so much per cent. on the money employed in the transaction.

29 What is the commission on $500, at 21 per cent. ? 30. If I allow my factor a commission of 3 per cent. for disbursing 725 dollars 50 cents, on my account, what does his commission amount to?

31. How much does a broker receive for his services on a sale of stocks amounting to 52648 dollars, allowing his commission to be of 1 per cent.?

STOCKS.

STOCK is a property, consisting in shares of some estabJishment, designed to yield an income. It includes government securities, shares in incorporated banks, insurance offices, factories, canals, rail-roads, &c.

The par value of a share, is what it originally cost; and the real value, at any time, is what it can be sold for. When it will sell for more than it originally cost, it is said to be above par, and the excess is stated at so much per cent. advance. When its real value is less than the original cost, it is below par, and is sold at a discount.

32. Sold 10 shares in the Manufacturers' Insurance

Company, at 5 per cent. advance, the par value of a share being 100 dollars. How much did I receive?

33. Bought 15 shares in the Boston Bank, at 2 of 1 per cent. advance, the par value being 50 dollars a share How much did I give for them?

34. Sold 64 shares in the State Rail-road, at 14 pe cent. discount, the par value being 100 dollars a share How much did I receive for them?

INSURANCE.

INSURANCE is security given, to restore the value of ships, houses, goods, &c., which may be lost at sea, or

P

by fire. The security is given in consideration of a premium paid by the owner of the property insured. This premium is a percentage on the value of the property.

The written instrument, which is the evidence of the contract of indemnity, is called a policy.

35. What is the amount of premium for insuring 19416 dollars, at 2 per cent., on a ship from Liverpool?

36. I effected an insurance of 3460 dollars on my dwelling-house for one year, at 3 of 1 per cent. What did the premium amount to?

37. If you obtain an insurance on goods valued at $7325, at of 1 per cent., what will the premium amount to?

IV.

INTEREST.

INTEREST has already been defined, and rules for computing it without decimals have been given, in Chap. VI., Sect. 23. The rules are repeated in this article, with such modifications as provide for the use of decimals.

To compute interest for one or more YEARS.

RULE. Multiply the principal by the decimal that expresses the rate, and the product will be the interest for year. Multiply the interest for one year by the number of years.

1

per

1. Find the interest of $87.41, for 3 years, at 6 per cent. 87.41X.06x3=15.7338. Ans. $15.73+ In the answers, fractions of a cent may be omitted. 2. Find the interest of $ 644, for 4 years, at 6 per cent. 3. Find the interest of 92 cents, for 7 years, at 6 cent. 4. Find the interest of $7.50, for 2 years, at 4 5. Find the interest of $2.91, for 3 years, at 4 6. Find the interest of $ 9.53, for 4 years, at 5 per cent. 7. What is the interest of $752.25, for 3 years, at 5 per cent.?

What is the amount?

per cent.

percent.

8. What is the interest of £16 8s. 6d., for 1 year, at 6 per cent.? What is the amount?

RULE.

To compute interest when there are MONTHS in the time First find the interest for the years, if there be any. Then take 12 of a year's interest for 1 month; 11⁄2 or for 2 months; or for 3 months; and so on. 9. What is the interest of 224 dollars for 7 months, at annum ?

6 per cent. per

3

10. What is the interest of 75 dollars and 50 cents, for 5 months, at 6 per cent.?

11. What is the interest of 145 dollars, for 1 year and 3 months, at 6 per cent.?

12. What is the interest of 95 dollars and 25 cents, for 2 years and 8 months, at 5 per cent.?

13. What is the interest of $351.09, for 3 years and 9 months, at 7 per cent.? What is the amount?

To compute interest, when there are DAYS in the time. RULE. First find the interest for the years and months, if there be any. Then take of a month's interest for 1 day; or for 2 days; 335 or 10 for 3 days; and so on.

2

14. What is the interest of $1000 for 1 year, 1 month and 1 day, at 6 per cent.?

15. What is the interest of $356.75 for 8 months and 10 days, at 6 per cent.?

16. What is the interest of $76.81 for 5 years, 2 months and 18 days, at 4 per cent.?

17. What is the interest of $250 for 1 year and 29 days, at 6 per cent.? What is the amount ?

18. What is the amount of $92.86 for 3 years, 7 months and 14 days, at 7 per cent.?

19. What is the interest of $175.63, from May 19, 1842, to January 4, 1844, at 6 per cent.?

We find the time between the two dates by subtracting the first from the last, as in compound subtraction; the months being denoted numerically.

1844 1 4

1842 5 19

1 7 15

20. What is the interest of $208.90, from June 2, 1843, to August 4, 1845, at 5 per cent.?

21. What is the interest, at 6 per cent., on a note of $110, dated Sept. 7, 1843, and paid July 9, 1846? What is the amount?

1

PARTIAL PAYMENTS.

In the settlement of notes, which have been partly paid, at dates previous to the settlement, the common method of computing the interest operates justly in cases where interest has not been running for more than one year. But for longer periods of interest, this method is not strictly just tc the creditor, and ought not to be adopted.

THE COMMON METHOD. Compute the interest on the original debt, from the date when interest commenced to the date of the settlement; also, compute the interest on each payment, from the date of the payment, to the date of the settlement. Then, subtract the amount of all the payments from the amount of the original debt, and the remainder will be the balance due.

The United States' Court, and the Courts of the several States, in which decisions have been reported-with the exception of Connecticut, Vermont, and New Jerseyhave established a uniform legal rule for the computation of interest, when partial payments have been made.

THE LEGAL RULE. Compute the interest on the principal of the note to the earliest date when a payment was made, which, either alone, or together with preceding payments, exceeds the interest then due. Add this interest to the principal, and from the sum subtract the payment or payments thus far made. The remainder becomes a new principal, with which proceed as with the principal of the note.

(22.)

Boston, January 14th, 1843. For value received, I promise to pay Wm. Rich, or order, one hundred and forty-one dollars and eight cents, in three months, with interest after. John Lang.

On the back of this note were the following endorsements. May 1st, 1843, received seventy-five dollars. September 14th, 1843, received forty-five dollars. What is the balance Jan. 14th, 1844, the interest being 6 per cent., computed by the common method? First payment, $75. 2nd payt. $45. Principal, Int., 8 m. 14 d., Int., 4 m. .90 Amount,

$141.08

3.17

Int., 9 m.

6.34

$78.17

Amount, $45.90 Amount,

147.42

78.17

124.07

$124.07 Balance,

$23.35

Amount of payments,

(23.) New York, May 25th, 1843. For value received, I promise Joseph Day to pay him or order, the sum of three hundred and one dollars and forty-seven cents, on demand, with interest.

Attest, John Smith.

Samuel French.

On the back of this note, the following endorsements were made. July 1st, 1843, received sixty-seven dollars and fifty cents. January 4th, 1844, received forty-eight dollars. April 11th, 1844, received thirty-nine dollars. What is the balance, June 21st, 1844; interest weing 6 per cent., computed by the common method?

(24.) Philadelphia, March 4th, 1842. For value received, I promise to pay to the order of Harper & Jones, one thousand two hundred dollars, on demand, with interest. Charles Train.

Oct.

The following endorsements are on this note. June 10th, 1842, received one hundred sixty-nine dollars and twenty cents. 22d, 1842, received twenty dollars. March 30th, 1843, received twenty-eight dollars. Nov. 5th, 1843, received six hundred eighteen dollars and five cents. If 6 per cent. interest be computed by the legal rule, what is the balance due, March 5th, 1844?

Principal,

Interest from Mar. 4, to June 10, (3 m. 6 d.),

Balance, forming a new principal,

$1200.

First Amount,

19.20 1219.20

First payment,

169.20

1050.00

Interest from June 10, to Oct. 22, (4 m. 12 d.),

$23.10

Second payment,

20.

(25.)

New Orleans, January 1, 1841. For value received, I promise to pay William Lock

or order, one thousand dollars, on demand, with interest,

Edward Smith.