34. In a day A can saw a pile of wood 4 ft. x 16 ft. × 3 ft., B can saw a pile 4 ft. × 15 ft. × 4 ft., and C can saw a pile 4 ft. x 13 ft. x 4 ft. How many cords can they all saw in 16 days? (128 cu. ft. = 1 cord.)

35. A stairway contains 18 steps, each 8 in. high and 12 in. wide. How many yards of carpet will be required to furnish a strip for the stairs?

36. A has 60 logs to be delivered at a mill. B offers to haul for him 4 loads of 3 logs each for $3.50 a day; while C proposes to haul 5 loads of 2 logs each for $3 a day. Which offer is the lower? How much lower?

37. If a barrel of flour (196 lb.) costs $4.90, at what price per pound must a dealer sell it in order to gain 20%?

38. If a ton of hard coal yields 182 lb. of carbon, how much carbon will 3500 lb. of such coal yield?

39. A traveling salesman received a guaranteed salary of $1200 a year, and in addition 5 % commission on all sales over $100,000. At the end of the year it was found that he had sold $125,000 worth of goods. How much did he receive for the year's services?

40. A stenographer made a record of 31,950 words in 71⁄2 hours. How many words did she average to the minute ? 41. The weight of an unbound book is 12 oz. If a spruce tree makes 400 lb. of paper, how many such trees will be required for an edition of 40,000 of these books? 42. A building lot has a frontage of 72 feet. Its area is 14,400 sq. ft. What is its depth?

43. What is the area of a parallelogram whose base is 606 ft. and altitude 663 feet?

44. For $75 a grocer bought 100 bunches of bananas, averaging 6 doz. to the bunch, and sold them at 20 a dozen. What per cent did he gain?

45. A mechanic worked 312 days during the year at $3 a day. If he saved $140.40, what per cent of his earnings did he save?

46. A dealer bought 20 dozen pairs of Irish point lace curtains for $3.50 a pair. He sold one half of them at a loss of 6%, and the remainder at a profit of 20 %. How much did he gain?

47. Find the per cent gained on the following goods: (a) Carpeting bought at 60 a yard, sold at 72¢ a yard; (b) A suit of furniture bought at $69, sold at $92; (e) Chairs bought at $13.50, sold at $16.74.

48. A furniture house advertises a cut of 121% on all of its goods. Find the selling price (1) of an oak sideboard marked $46; (2) of a Morris chair marked $16.

49. If a commission merchant remits $2640 to a customer, after deducting 4%, what was the amount of the sale? 50. Find the difference between the simple interest and the compound interest on $1320 for 3 years at 6%.

51. Make out a 60-day note for $875, dated to-day, payable to the order of Stanley Dexter at some bank in your vicinity, and discount it at 6%. Find the proceeds.

52. What will a Roanoke merchant pay for a draft on New York for $1620 at 10% above its face?

53. In 2 yr. 6 mo. $240 amounted to $267. What was the rate?

54. What principal will earn $94.50 in 31 yr., at 6% ? 55. A note of $650 dated Jan. 25, 1906, interest at 6%, has indorsed upon it the following record of payments:

May 15, 1906, $35; Sept. 5, 1906, $67.50; Jan. 20, 1907, $8.25; Mar. 5, 1907, $150. Find the amount due after the last payment.

INSURANCE

400. A contract by which a company agrees to indemnify the party insured against loss in the event of certain misfortunes is called an insurance contract.

401. The written contract of insurance is called a policy. It contains a promise to pay a specified sum in the event of certain contingencies. This sum is the face of the policy.

Persons engaged in insurance as a business are often called underwriters.

402. The sum paid for insurance is called the premium. It is sometimes computed at a given sum for each $100 or $1000 of insurance, and sometimes at a certain per cent of the face of the policy.

403. Fire Insurance.

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Insurance against loss by fire is called fire insurance. Premiums are based on a yearly per cent of the face of the policy.

Marine insurance, tornado insurance, etc., follow the same principle.

WRITTEN EXERCISES

404. 1. What is the annual premium for insuring a building for $3500 against loss by fire, if the premium is $1.30 per $100 ?

2. What will it cost to insure a building fór $5000, at 11% ?

3. What will it cost to insure a store for $4000, at 1.2% ? 4. A building worth $15,000 is insured for of its value, at 21%. What is the premium ?

5. What will it cost to insure a house for $2000 for five years, if the rate per year is $.50 on $100, and the house is insured for the term for three yearly premiums paid in advance?

6. What is the premium for insuring a house for a year for $8000 at $1.25 per $100, and the contents for $3750 at $1.50 per $100 ?

7. If a policy for $4500 costs $ 90, what is the rate per cent?

8. If it costs $36 to insure a house at 11%, what is the face of the policy?

9. A merchant insured his stock, for of its value, at 21%. The premium was $313.50. What was the value of his stock?

10. A merchant insured his store which was worth $15,000, for of its value, at 2%. If it was destroyed by fire, what was his loss including the premium?

11. A contractor shipped 1,000,000 feet of yellow pine from Gulfport, Miss., to Panama, valued at $10 a thousand. If insured at 3%, what was the premium?

12. A southern cotton mill with an automatic fire apparatus gets a rate of 5% on its plant. If valued at $100,000 and insured for of its value, what is the annual premium? 13. By paying two annual premiums in advance, this mill gets a policy for 3 years. What is the average cost of insurance a year?

405. Life Insurance.

In life insurance, premiums are always stated at a given sum on each $1000 on a yearly basis. yearly basis. They vary with the age of the insured, being larger for older persons. In consideration of the premiums paid, the insurance company agrees to pay a fixed sum to the person named in the policy (the beneficiary) at the death of the insured, or at a stipulated time.

406. Insurance companies offer various forms of policies. The more common forms are the Ordinary Life, Limited Life, and Endowment policies.

In the ordinary life the insured agrees to pay a certain premium annually for life. In the limited life the premiums are payable for a stated number of years, but the face of the policy is not paid until the death of the insured. At death premiums cease and the policy matures. In endowment policies premiums cease at the end of the endowment period, and the face of the policy is paid to the insured if living. If the insured dies before the end of the endowment period, the premiums cease and the face of the policy is paid to his beneficiary.

An Accident policy is a policy in which the company agrees to pay the person insured, or his beneficiary, certain sums for accidental injuries or death from accident.

Other forms of policies are modifications of the foregoing types.

WRITTEN EXERCISES

407. 1. What is the premium on a $3000 policy at $21.49 on $1000?

2. A man 28 years old insured his life for $3000 on the ordinary life plan, at the rate of $23.44 on $1000. What is the annual premium?