MENTAL PROBLEMS.

1. When stock is 6% premium, what is the market value of $1? Of $100?

2. When stock is 12% discount, what is the market value of $1? Of $100?

3. How much will 5 shares of telegraph stock cost, at 4% premium? At 4% discount?

NOTE. A share is $100, if no other value is named.

4. How is stock quoted when it is 15% premium? When it is 15% discount?

5. When stock is quoted at 107, what is the value of $1? Of $100?

6. When stock is quoted at 87, what is the value of $1? Of $100?

7. How much will 10 shares of mining stock cost when quoted at 104? At 85?

8. When bank stock is quoted at 105, how many shares can be bought for $525? For $840?

9. A company declares a dividend of 3% how much will a stockholder, owning 15 shares, receive?

10. A manufacturing company made an assessment of 5%, to repair damages caused by a freshet: how much must a stockholder, owning 20 shares, pay?

WRITTEN PROBLEMS.

11. A man bought 75 shares of railroad stock at 74% discount: how much did they cost?

12. Bought 100 shares of Little Miami stock at 1091⁄2, and sold them at 112: how much did I gain in the transaction?

13. A broker bought 70 shares of insurance stock at 6% premium, and sold them at % discount: how much did he lose?

14. A man bought 52 shares of Illinois Central at 127; and sold 36 shares at 135, and the rest at 1371⁄2: how much did he gain?

15. A man exchanged 52 shares of railroad stock at 80, for insurance stock at 104: how many shares of insurance stock did he receive?

16. A broker bought 84 shares, $50 each, of telegraph stock at 94, and sold them at 100%: how much did he gain?

17. The Cincinnati Gas Co. declares a dividend of 163% how much will a man holding 36 shares receive? 18. The capital of an insurance company is $500000, and it declares a dividend of 4% how much money is distributed among the stockholders?

19. A company with a capital of $125000 declares a dividend of 4%, with $3500 surplus: what were the net earnings of the company?

NOTE. The surplus is a part of the net earnings set apart to meet future demands.

20. The entire capital stock of the railroads in Ohio for 1869 was $106686116, and their net earnings for the year were $9051998: what was the average rate of dividend?

21. The net earnings of a gas company are $22425, and the capital stock is $215000: what rate of dividend can be declared, no surplus being reserved? What will be the dividend on 45 shares?

22. The capital of a mining company is $450000; the' gross receipts are $70680; and the expenses are $40325: what rate of dividend can it declare, reserving a surplus of $6505?

23. How many shares of bank stock at 4% premium, can be bought for $8320?

24. How much railroad stock, at 12 discount, can be bought for $8750?

25. When N. Y. Central is quoted at 95g, how much stock can be bought for $6894, brokerage %?

26. A broker bought 84 shares of coal stock, at 1081, received a dividend of 51 %, and then sold the stock for 106: how much did he gain?

27. A broker bought stock at 4% discount, and, selling the same at 5% premium, gained $450: how many shares did he purchase?

28. A man bought Michigan Central at 120, and sold at 124: what per cent. of the investment did he gain?

FORMULAS AND RULES.

247. FORMULAS.-1. Dividend or assessment = stock\rate%. = divid. or assess. ÷ stock.

2. Rate %

NOTE.-Formulas 4, 7, and 8 cover all ordinary transactions in stock jobbing. The sign ±, used in 7 and 8, is read plus or minus.

248. RULES.-1. To find the dividend or assessment when the stock and rate per cent. are given, Multiply the stock by the rate per cent. expressed decimally. (Form. 1.)

2. To find the rate per cent. when the dividend or assessment and total stock are given, Divide the dividend or assessment by the amount of stock, and the quotient, expressed in hundredths, will be the rate per cent. (Form. 2.)

3. To find the stock when the dividend or assessment and the rate per cent. are given, Divide the dividend or assessment by the rate per cent. expressed decimally. (Form. 3.)

4. To find the premium or discount on a given amount of stock, Multiply the amount of stock by the rate per cent. expressed decimally. (Form. 4.)

5. To find the cost or market value of a given amount of stock, Multiply the amount of stock (1) by 1 plus or minus the rate per cent. (Form. 8); or (2) by the quoted price expressed as hundredths.

NOTE.-The cost may also be found by adding the premium to, or subtracting the discount from, the par value. (Form. 9.)

6. To find the amount of stock which can be bought for a given amount of money, Divide the amount of money to be invested (1) by 1 plus or minus the rate per cent. (Form. 7); or (2) by the quoted price expressed as hundredths.

NOTE. When brokerage is paid, the rate of brokerage must be added to the quoted price before dividing.

252. Life Insurance is a guaranteed indemnity for loss of life.

Health Insurance guarantees the insured a certain sum of money if sick; and Accident Insurance pledges a like indemnity if the insured is injured by accident.

253. The Policy is the written contract between the insurer and the insured.

The insurer is called an Underwriter, and the insured a Policy Holder.

254. The Premium is the sum paid by the insured to obtain the insurance. It is a specified per cent. of the amount insured.

The act of insuring is called taking a risk. When property is insured, the valuation or amount is usually made less than the real value of the property.

The insurance business is chiefly carried on by corporations, called Insurance Companies. In Joint Stock Companies the profits and losses are shared by the stockholders, but in Mutual Companies they are divided among the policy holders.

MENTAL PROBLEMS.

1. A house was insured for $2500, at 1% what was the premium?

2. A stock of goods was insured for $8000, at %: what was the premium?

3. A hotel worth $6000 is insured for of its value, at 14% what is the premium?

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4. What will it cost to get a house insured for $4000, for 10 years, at % a year?

5. The premium paid for insuring a library for $500, is $5 what is the rate of insurance?

6. An insurance company insures a school house for $10000, and charges $50 premium: what is the rate?

7. The premium for insuring a cargo of goods, at 2%, was $240: what was the amount of goods insured?

WRITTEN PROBLEMS.

8. A factory worth $75000 is insured for of its value, at 11% how much is the premium ?

9. A merchant has his store insured for $7850, at %, and his goods for $12400, at %: what premium does he pay?