13. A speculator bought a quantity of peaches for $280, and marked them 40 % above cost. They began to spoil and he was obliged to sell them at a discount of 40% from the marked price. Did he gain or lose, and how much? 14. A man sold two vacant lots for $960 apiece. By so doing he sold one at a discount of 4% from his asking price and the other at a discount of 20% from his asking price. Both were marked 20% above cost. a. What did each cost? b. What was his entire gain? 15. Two merchants have the same kind of goods marked at the same price. One offers discounts of 25%, 20%, and 5%. The other offers discounts of 5%, 20%, and 25%. Which is the better offer? 16. Two merchants have goods exactly alike, listed at $200. One offers discounts of 20%, 10%, and 10%. The other offers a single discount of 37%. Which is the better offer, and how much better? 17. A carload of corn containing 700 bushels was bought on 60 days' time at 48 cents a bushel. The purchaser obtained a discount of 21% by paying cash. What did the corn cost him? 18. What single discount is equal to successive discounts of: 19. $144 was sufficient to pay a bill on which discounts of 20% and 10% were given. What was the amount of the bill before the discounts were made? Statement of Relation: 90% of 80% of the amount = $144. When the product of three factors and two of the factors are given, how may the remaining factor be found? 20. What is the list price of a bill on which discounts of 10%, 10%, and 5% make the net price $ 153.90 ? 21. Two successive discounts reduced to $108 the price of an article listed at $160. One of the discounts was 25%. What was the other? Statement of Relation: % of 75% of $160 $108. When the product of three factors and two of the factors are given, how may the remaining factor be found? That factor subtracted from 100% is the required discount. 22. What discount, in addition to one of 20%, will reduce a price from $50 to $39.20? 23. What list price will give a net price of $113.40 when discounts of 30%, 10%, and 10% are made? 24. A merchant bought goods at a discount of 35% from the list price and sold them at a discount of 25 % from the list price. HINT.-Goods listed at $100 cost him $65 and he sold them for $75. a. What was his profit on goods listed at $350 ? b. What was his rate per cent of profit?, c. What was his profit on goods which cost him $195? d. What was the list price of goods that cost the merchant $1300? 25. A man bought goods at successive discounts of 25%, 10%, and 10%, and sold them at successive discounts of 10% and 5% from the list price. a. What was his gain on goods listed at $80 ? b. His gain was what per cent of the cost? CONTRACTS 284. A contract is an agreement between two or more parties for doing or not doing a particular thing. In making a contract it is necessary that all the parties agree to the same thing. For instance, in bargains for the purchase of property, if the seller has in mind one piece of property, while the buyer thinks he is buying a different piece of property, there is no contract. It is generally held, also, that there must be a consideration. That is, when one party makes a contract with another, he must pay, or agree to pay, a sum of money, or render some service, or give something of value, in return for what he receives from the other. There are many kinds of contracts. Among the commonest ones are the following: Contracts for the purchase of property. Contracts for the rental of property. Contracts for the payment of money-such as notes, bonds, and mortgages. Contracts of insurance. Contracts of employment-as when one person agrees to work for another for a certain time at a specified salary. INSURANCE 285. Insurance is a contract whereby one party (usually an insurance company) agrees to pay to another party a specified sum of money in case a certain event shall happen, such as the death of some person, injury to the person by accident, destruction of property by fire or water, or loss of property by theft or accident. The different forms of insurance are known as life insurance, accident insurance, fire insurance, marine insurance, etc., according to the kind of risk that is assumed by the insurer. 286. The written or printed document that contains the terms of an insurance contract is called an insurance policy. 287. The sum which the insurer agrees to pay is called the face of the policy. 288. The sum paid by the insured to the insurer is called the premium. Life insurance policies are in force for a term of years or during the life of the insured; but the premium is usually paid in annual, semi-annual, or quarterly installments. Installments after the first are called renewals. Most other kinds of insurance policies are for a shorter time, and the premium is paid in one sum when the policy is issued. Accident policies are usually made out for one year, though some special kinds, like railroad accident policies, are sold for shorter periods. Fire insurance policies are usually for three years. The premium on a fire insurance policy is computed at a certain sum for each $100 of insurance, or a certain per cent of the face of the policy, this single rate covering the entire time for which the policy is given. The premiums on life insurance policies are generally computed at a certain sum for each $1000 of the face of the policy, the sum varying according to the age of the insured when the policy was issued, and according to the conditions of the contract. 289. The following forms illustrate some kinds of insurance policies. Only the essential parts of each contract are given. En Consideration of the Stipulations herein named and of.... against all direct loss or damage by fire, except as hereinafter provided, To an amount not exceeding_- Two Thousand Dollars, to the following described property, while located and contained as described herein, and not elsewhere, to wit: Jacob P. Goettel $2000 on the three- and four-story brick building, including elevators and all attachments, gas and water pipes, and fixtures, heating ap- Permission given for the use of gas, kerosene oil, or electric lights Other insurance permitted without notice until required. Light- * In Witness Whereof, this Company has executed and attested these presents this 6th This Policy shall not be valid until countersigned Syracuse, NY Samuel Martin, President. Attest: Jno. A. Snyder, Secretary. Countersigned by- |