3. A sells $5472 worth of dry goods, charging 3% commission and 14% for insuring payment; what sum will he remit to his employer? Ans. $5212.08. 4. A lawyer having a debt of $1536 to collect, compromises for 95%; what is his commission at 4%, and what does he remit to his employer? Ans. Com. $65.66. 5. My agent bought 40 horses for $150 each, and paid $25 for their keeping and $80 for transportation; his commission was 3%; what did the horses cost me? Ans. $6315. 6. What would be the net proceeds of a sale of 450 bbl. of prime mess pork @ $17.12, allowing 24% commission, and paying 5 a barrel storage for 30 days? Ans. $7491.09. 7. A tax collector had a warrant for $25,850, upon which he collected $12,500 at 14%, and the balance at 2%; required the amount of the collector's fees. Ans. $521.25. 8. An architect was employed to erect a city hall which cost $75,000, and was allowed 3% for plans and specifications, and 14% for superintendence; but on settling accounts he claimed $1500; how much did he overcharge the city? Ans. $93 75. CASE II. 403. Given, the rate and the commission or the net proceeds or the entire cost, to find the base. 1. An agent receives $84 commission for buying goods, at the rate of 1%, what was the cost of the goods? SOLUTION.--At a commission of 13%, .011 times the cost of the goods equals the commission, which is $84; hence, the cost equals 84 divided by .01, which we find is $6300. 84 OPERATION. = 6300 .01 2. An agent receives $4920 to be invested in cotton after retaining his commission, 24%; required the amount invested. SOLUTION. The sum to be invested, increased by 2% of itself, equals 1.02 times the sum, which equals $4920. If 1.023 times the sum equals $4920, the sum equals $4920 divided by 1.022, which we find is $4800. OPERATION. = =4800 4920 1.02 Rule I.-Divide the commission by the rate, to find the base. Rule II.-Divide the net proceeds by 1 minus the rate, or the entire cost by 1 plus the rate, to find the base. WRITTEN EXERCISES. 3. A lawyer's commission for making collections for a firm at 21% is $1600; how much did he collect? Ans. $64,000. 4. A miller sent his Detroit agent $9270 to be invested in flour, after deducting his commission of 3%; commission? what was the Ans. $270. 5. An agent buys hides on commission, at $25 for cartage; the entire bill was $4558.75; what was the commission? Ans. $33.75. 6. A commission merchant sells goods for a party at 14%, and charges 2% for guaranteeing the payment of the money; his commission was $284.25; required the amount of goods sold. Ans. $7580. 7. A cotton factor received $1132.71 to invest in cotton at $.24 a pound, deducting 31% commission; how many pounds did he buy? Ans. 4560 lbs. 8. An agent bought 40 horses on commission, at 44%; he paid $25 for keeping and $50 for transportation, which, with his commission, amounted to $345; what did the horses cost apiece? Ans. $150. 9. I sold some goods on commission at 5%, through an agent, who charged me 3%; my commission, after paying my agent, was $388; required the agent's commission, commission, and the money paid to my employers. Ans. My com., $970; agent's, $582; sum paid, $18,430. CASE III. my 404. Given, the base and the commission or the net proceeds or the entire cost, to find the rate. 1. A commission merchant collects $7860, and his com mission was $393; required the rate of commission. SOLUTION. The commission, $393, equals the base, $7860, multiplied by the rate; hence, the rate equals $393 divided by $7860, which we find is .05, or 5%. OPERATION. - :.05 $393 $7860 Rule I.-Divide the commission by the base, to find the rate. Rule II.-Divide the difference between the base and the net proceeds or the entire cost, by the base, to find the rate. WRITTEN EXERCISES. 2. A factor sold some land, and paid over $7742.10, retaining $117.90 as commission; required the rate. Ans. 1%. 3. An agent bought some flour, paid $54 storage, and charged $180 commission; his entire bill was $82341; what was the rate of commission? Ans. 21%. 4. I sold a consignment of cotton goods through an agent for $2500; my commission was $112.50, and I paid the agent $37.50; what was the rate of commission of each? Ans. Mine, 4%; Agent's 14%. 5. My factor sold a consignment of sugar for which he remitted a note for $8500; he charged $127.50 for guaranteeing payment and $191.25 for commission; what was his rate of commission and of guaranty? Ans. Com. 24%; guaranty, 14%. STOCKS AND DIVIDENDS. 405. A Company is an association of individuals for the transaction of business. 406. A Corporation is a company regulated in its operations by a general law or a special charter. 407. The Stock of a company is the capital invested in the business. The owners of stock are called Stockholders 408. A Share is one of the equal parts into which the stock is divided. A share is usually $50 or $100. 409. An Installment is a sum required of stockholders as a payment on their subscription. 410. A Dividend is a sum paid to stockholders out of the gains of the company 411. An Assessment is a sum required of stockholders to meet the expenditures or losses of the company. 412. The Base upon which dividends and assessments are estimated is the original or par value of the stock. 413. The Quantities considered are as follows: 1. The Stock; 2. The Rate; 3. The Dividend or Assessment. CASE I. 414. Given, the stock and rate of dividend or assessment, to find the dividend or assessment. 1. A owns $20,000 of the stock of a bank which declares a dividend of 8%; what is his dividend? SOLUTION.-If A has $20,000 worth of stock, and the bank declares a dividend of 8%, his dividend is .08 times $20,000, which is $1600. OPERATION. $20000 .08 $1600.00 Rule.-Multiply the par value of the stock by the rate, to find the dividend or assessment. NOTE. It is often convenient to find the result by multiplying the divi dend or assessment on one share by the number of shares. WRITTEN EXERCISES. 2. Miss Atherton bought 78 shares of Reading R. R stock, at $50; the company declares a dividend of 4%; what is her dividend? Ans. $156.00. 3. Miss Lyle owns 65 shares, at $50, in an insurance company, which on account of losses, requires an assess ment of 2 per cent.; what does she pay? Ans. $81.25. 4. The Union gas company, whose stock is $785,000, declares a semi-annual dividend of 3 per cent.; required the amount of dividend. Ans. $27475. 5. A has 40 shares, $50 each, of stock in a bank, which declares a dividend of 5%; what is A's dividend, and how many shares of stock would it buy at par? Ans. 2 shares. 6. A man owns 50 shares of Salem turnpike stock ($100); the company declares a dividend of 8%, payable in stock; how many shares will he then own? Ans. 54 shares. 7. A company whose capital is $250,000, pays a dividend of $84 on 24 shares ($100), and reserves as a surplus, $5760; what were the net earnings? Ans. $14510 CASE II. 415. Given, the rate and the dividend or assessment, or the result of increase or decrease of stock, to find the stock. 1. A bank divides $8400 among the stockholders, being the amount of 7% dividend; required the whole amount of stock. SOLUTION.-If $8400 is 7% of the stock, then .07 times the stock equals $8400; hence, the stock equals $8400 divided by .07, which s $120000. OPERATION. $8400 $120000, Ans. Rule I.-Divide the dividend or assessment by the rate, to find the stock. Rule II.-Divide the result of increase by 1 plus the rate, or the result of decrease by 1 minus the rate, to find the stock. WRITTEN EXERCISES. 2. I received $880 from a 5 per cent. dividend; how much stock do I own? Ans. $16000. 3. I receive $279 as my share of a 9% dividend; how many shares, at $50 each, do I own? Ans. 62 shares. 4. A company divides $72000 among its stockholders, as the result of an 8% dividend; what is B's stock, provided he owns of the entire stock? Ans. $112500. 5. A lady receives $1260 dividend at 7%; required the amount of stock she owns and the number of shares, valued at $50 each. Ans. 360 shares. 6. Mr. B receives $7800, payable in stock, as his share of a 12% dividend; how many shares had he at first, and how many has he now, shares at $50? Ans. 1456. 7. A gentleman received 7 shares and $25 in money, as his share of a 6% dividend; how many shares, valued at $50, did he then own? Ans. 132 shares. 8. In 1864 I received a stock dividend of 25% in the Camden and Amboy Railroad, and I then had 80 shares, at $100 each; how many shares had I at first? Ans. 64 shares |
