Hence, divide the given sum by $1, increased by the com mission on $1; the quotient will be the sum to be expended; the difference between this and the given sum is the commission.

11. A received $312 to buy goods: after deducting his commissions at 4%, what must he expend? Ans. $300. 12. B receives $1323.54 to buy goods, at 8% commission: what was his commission? Ans. $98.04

ART. 215. INSURANCE.

Is security against loss by fire, navigation, &c. It is effected with a company, or an individual, who, for a certain per cent., agrees to make good the amount insured, for a certain period.

The POLICY is the written contract between the parties.
The PREMIUM is the sum paid for insurance.

The Insurer is called an UNDERWRITER.

Insurance on ships, boats, &c., is Marine Insurance.

The RATE of insuring is a certain per cent. of the amount insured, and is calculated by Rule, Ârt. 210.

1. What is paid for insuring $2250 on a house, at 11% premium, the policy costing $1? Ans. $34.75

2. A steamboat is valued at $12600, the cargo at $14400; of their value is insured at 4%, the policy costing $1: what the cost of insurance? Ans. $811.

3. What is paid for insuring of a house worth $5000, at %, the policy costing $1.50? Ans. $20.25

4. A has a ship valued at $21000, and a house at $1200: what will be the cost of insuring of the ship at 12%, and the full value of the house, at 1%, the two policies costing $1 each? Ans. $1520.

REVIEW. 212. Where are the principal applications of percentage? 213. What is commission? How estimated?

215. What is insurance? How effected? What is the policy? The premium? An underwriter? Marine insurance? Rate? How calculated?

ART. 216. Some persons wish to insure so as to cover the property and premium paid, in case of a loss.

5. A's shop is valued at $190: at 5 %, what sum must be insured, so that he may recover the value of the property and the premium in case of loss?

SOLUTION. Since the rate of insurance is 5 per cent., 5 cents of every dollar insured is premium, and the remaining 95 cents property; hence,

As often as the property to be insured contains 95 cts., so many dollars must be insured to cover that property and its premium. $190.95 $200. Ans.

=

But, PROOF.-$200 X.05= $10; and $190 +$10-$200. In such cases, divide the value of the property insured, by the remainder left after subtracting the rate of insurance from 1.

6. At 1%, what sum must be insured on $2475, to secure both property and premium? Ans. $2500. 7. At 12%, what sum must be insured on $13125, to cover property and premium? Ans. $15000.

8. At 13% what sum must be insured on $2358, to cover the premium and property?

Ans. $2400.

Ans. $8.61

9. At % what must be paid for insuring $2287.39, to cover both property and premium?

ART. 217. STOCKS.

STOCK is money or property invested in Manufactories, Railroads, Insurance Companies, Banks, Bonds, &c.

Stock is divided into shares, usually of $50 or $100 each. The owners are Stockholders.

The original cost of a share is its par or nominal value. When $100 of stock sells for $100, the stock is said to be at par; when it sells for more than $100, above par; and when for less than $100, below par.

REVIEW.-216. How find the sum to be insured, to cover both property and premium?

217. What is stock? How divided? What is meant by par value ?

When stocks are above par they are at an advance; and when below par, at a discount.

The per cent. is calculated on the par value. Art. 210.

1. What is the value of $1400 of stock, at 104 %; that is, 4% above par? Ans. $1456. 2. What the value of $1400 of bank stock, at 96 %; or 4% below par? Ans. $1344.

3. What the value of 11 shares railroad stock ($50 each) at 5% advance? Ans. $577.50 4. What the value of 15 shares canal stock ($75 each), at 10% below par? Ans. $1012.50

5. Bought $1500 of bank stock, at 104 %, and sold it at 108% find the gain.

:

Ans. $57.50 below par, and sold Ans. $110.50

advance; sold at a Ans. $55.90

ART. 218. BROKERAGE.

The

Dealers in money, stocks, &c., are BROKERS. operation of finding the percentage is termed Brokerage.

The percentage is calculated, Art. 210, on the par value of the funds received or paid.

When bonds, notes, or coin, bring more than their nominal value, they are at a premium; when less, at a discount.

1. Find the premium, at 11 %, on $600.

2. What sum is lost in exchanging $289 at a discount of 11 %?

Ans. $9.

in bank notes, Ans. $3.611

3. I sold $360, in bank notes, at % discount: how much did I receive? Ans. $358.65

REVIEW.-217. When is stock at par? Above par? Below par? At an advance? At a discount? On what is the per cent, calculated?

4. What sum must a broker pay for $134, in bank notes, at 2% discount? Ans. $130.65 5. What sum must a broker pay for $200 in gold, at % premium?

$201.25 6. A buys $500, in notes, at % discount, and sells at % premium: find his gain. Ans. $3.75

ART. 219. INTEREST.

INTEREST is an allowance made by the borrower to the lender, for the use of money.

PRINCIPAL is the sum loaned, for which interest is paid.
AMOUNT is the sum of the principal and interest.
PER ANNUM signifies for one year.

RATE PER CENT. per annum, is the number of dollars paid for the use of $100, or the number of cents paid for the use of 100 cents, for one year.

ILLUSTRATION.-B borrowed of A $200 for 1 year, and agreed to pay him $12 for the use of it, that is, $6 for the use of $100 for one year. Here, $200 is the principal, $12 the interest, $6 the rate per cent., and $212 the amount.

REM.-1. The distinction between Interest and other computations in Percentage, as Commission, Brokerage, &c., is this: in the latter, the rate per cent. has no regard to time, whereas,

In Interest, time is always considered: and,

For periods of time greater or less than one year, the interest is proportionally greater or less than the interest for one year.

2. For brevity, the term per annum is seldom used in connection with rate per cent., but is always understood. Hence,

In Interest, rate per cent. always means rate per cent. per annum.

LEGAL INTEREST is the rate established by law. Any rate higher than the legal rate is Usury.

REVIEW.-218. What are brokers? What is brokerage? On what is the percentage calculated? When are notes at premium? At discount? 219. What is Interest? Principal? Amount? What does per annum signify? What the rate per cent. per annum?

When no rate per cent. is named, the legal rate where the business is transacted, is understood.

5

NOTE. The legal rate of Int. in Louisiana is per cent.; In N. York, S. Carolina, Michigan, Wisconsin, and Iowa, 7 per cent.; In Georgia, Alabama, Mississippi, Florida, and Texas, 8 per cent.; In the rest of the States, and in the U. S. Courts,

CASE I.

6 per cent.

ART. 220. To find the interest on any principal, at any rate per cent. for one or more years.

1. Find the interest of $25 for 1 yr., at 6 %.

OPERATION.

$25

.06

SOLUTION. Since 6 per cent. is 80.06, it is only necessary, as in Percentage, Art. 210, to multiply the principal by the rate expressed decimally, and the product will be the Int. for 1yr. Ans. $1.50

Or, thus: Six per cent. is $6 on $100, or 6 cents on $1. Hence, if the interest on $1 is 6 cts. $.06, the interest on $25, for the same time, will be 25 times as much; 25 X $.06 $1.50 Ans.

2. Find the interest of $50 for 3 yr., at 7 %.

=

by 8 to obtain the Int. for 3 yr. Ans. $10.50 Int. for 3 yr.

*3. Interest of $65 for 4 yr., at 5 %.

Ans. $13.

Rule for Case I.-1. Multiply the principal by the rate per cent. expressed decimally; the product will be the interest for one year.

REVIEW.-219. REM. 1. What is the distinction between interest and commission? 2. What does rate per cent. in interest always mean?

219. What is legal interest? What is usury? When no rate is named, what is understood? NOTE. In what State is the legal rate of interest 5 per cent.? In what 7 per cent.? In what 8 per cent.? In what 6 per cent.?