7. What is the market value of a 10% stock that earns 12% on the investment?

That earns 8% ?

PROBLEM IV.

685. To find a number, the number plus or minus a part being given.

Cost Value Market Value ÷

{ 1 + Rate of Gain, or, 1-Rate of Loss.

1. By selling stock at 84 a man makes 5% on his investHow much did he pay for the stock?

ment.

He sold for $84 or 105 %. $84 ÷ 1.05

=

$80 or cost.

2. By selling stock at 105, 25% is gained on the investment. How much was paid for the stock?

3. Mr. Williams sold his stock at 96 a share, thereby losing 20% on his money. How much did the stock cost him? 4. If there is a loss of 10% on stock sold for 99, what was the cost value?

5. A man gains 30 % on 20 shares of stock sold for $2,340. What did the stock cost him per share?

6. If 20% is lost on stock by selling it for 92, what was the cost of 35 shares?

MISCELLANEOUS PROBLEMS.

686. Oral Problems. 1. What is the annual dividend on 25 bonds yielding 4 % ?

2. Mr. Clark bought 6 shares of R. R. stock at par, and sold them at 15% premium. What did he gain?

3. If a man receives $24 dividend on 8 shares of R. R. stock, what is the rate of dividend?

4. What rate of dividend is paid on $100 stocks yielding $4 each?

5. What rate of interest does a man's money pay, if he invests it in 6 % bonds at 120 ?

6. If money is invested in 2 % stock at 150, what rate of interest does the money pay ?

7. What is the market value of 4% stock, which pays 8 % on the money invested?

8. The market value of stocks on which 50 % is gained is 120. What was the cost?

9. A man sells stock at 90, gaining 20%. What did it cost? 10. How much is paid for stock, if the semi-annual dividend of 3% on the investment is $4 per year?

687. Written Problems. 1. What is the income on 825 shares of stock yielding 6 % dividend?

2. What is the discount on 45 shares of R. R. stock at 84% ? 3. Bought bonds at 20% discount. If they yield 4 % dividend, what rate of interest do they bear?

4. If 6% bonds bear 4 % interest, what is their value? 5. What is the market value of 43% stock, which pays 6 % on the investment?

6. A invests $4,650 in stock at 93 %. What will be his loss if the stock falls per cent. ?

7. A man sold $5,000 bought 8% stock at 90. the 8% stocks?

of 6 per cent. stocks at 72, and What is his annual income from

8. If 110 shares of 4% stock bought at 92 are changed to 5 per cent. stock at 110, what is the increase in income?

9. What is the gain on 1,200 shares of stock bought at 84 and sold at 88, brokerage being % each way?

The cost is 84 +, or 841, and the selling price is 88 , or 877. The gain on one share is the difference between 877 and 84, or 34. If $33 are gained on one share, 1,200 × $33, or $4,500, will be gained on 1,200 shares.

10. On how many shares of stock will $6,075 be gained, if the stock is bought at 45 and sold at 52, brokerage being % each way?

INSURANCE.

688. Insurance is assurance against loss.

Fire insurance is insurance against loss by fire; life insurance, against loss by death; marine insurance against loss at sea; accident insurance, against loss by accident, etc.

689. The policy is the written contract given by the insurance company to the party insured.

690. The premium is the sum of money paid to the party insuring for the insurance.

691. In applying PERCENTAGE to Fire Insurance and to Marine Insurance, the amount of insurance is the`· base; the premium is the percentage; the amount of insurance plus or minus the premium is the amount, or the difference; and the rate per cent. of insurance is the rate per cent., as in percentage.

The insured sometimes insures the value of his property plus the premium (i. e. the amount); the loss of the insurance company is the amount of the insurance minus the premium (i. e. the difference).. 692. Life Insurance and Accident Insurance are not applications of percentage, but problems in multiplication and division.

The premium in Life Insurance is so many dollars on the $1,000, at a given age; and in accident insurance, so many dollars for $1,000, $3,000, or $5,000, for a given time.

PROBLEM I.

693. To find a part of a number.

Premium = Amount of Insurance × Rate.

1. What premium is paid for $10,000 of insurance at 3% ?

1% is $100; % is of $100 or $374.

PROBLEM II.

694. To find what part one number is of another.

Rate = Premium ÷ Amount of Insurance. NOTE.-Problems II., III. and IV. may be deduced from Prob. I. 1. If $45 is paid for insuring property for $3,000, what is the rate?

$45 is 35 or .014 of $3,000.

2. What is the rate when $12 is paid for $1,500 insurance ?

PROBLEM III.

695. To find a number, a part being given.

Amount of Insurance = Premium ÷ Rate.

NOTE.—The amount of the insurance is frequently a fractional part of the value.

1. For what sum is a ship insured, if the rate is 2%, and the premium $500 ?

Divide by 2 to find 1%; multiply by 100 to find 100 %; or, divide by .024.

PROBLEM IV.

696. To find a number, the number plus or minus a part being given.

1. For what sum was property insured, if the rate being 23%, the net sum received by the insured, the property having been destroyed by fire, was $48,750 ?

The net receipts were 100% less 2%, the rate of premium.
orchant insured his ship, the policy covering the
The ship having been lost at sea, he received
For what sum did he insure, the rate being 34% ?

3. The net loss to a fire insurance company by a fire was $63,979.25. The rate of insurance being 13 %, what was the amount of the insurance?

4. A dry goods merchant having lost his property by fire, received $148,650, having paid premium for 2 years. The rate per cent. for insurance being .4, what was the amount of his insurance ?

MISCELLANEOUS PROBLEMS.

697. Oral Problems. 1. How much will it cost to insure a factory worth $40,000 at 2% ?

2. What is the premium for insuring a man's life for $10,000, at $20 per thousand ?

3. If $1 is paid for insuring a piano worth $500, what is the rate of insurance?

4. $600 premium is paid on a vessel insured at 3%. What is the amount of insurance on the vessel ?

5. If $5 premium is paid for insuring property worth $4,000, what is the rate of insurance ?

6. A man whose property was destroyed by fire received from the insurance company, after deducting the premium, $990. If the rate of insurance was 1 %, what was the amount of insurance ?

7. If a man pays $150 for insuring merchandise worth $10,000, what is the rate of insurance?

8. What is the cost of 5 years' insurance on property worth $5,000 at %, including a policy for $1 ?

9. At 3%, the cost of insuring a house was $24. For how much was the house insured?

10. If the amount insured, increased by the premium, was $408, and the rate 2 %, what was the amount insured?

11. The premium for insuring a stable and its contents at 13% was $70. What was the amount of the insurance?