COMMERCIAL DISCOUNT 351. A deduction from the price of anything is called a commercial discount. Manufacturers and wholesale dealers issue catalogues and price lists with list prices quoted somewhat above the highest market prices of their goods, and sell to their customers at varying discounts according to the fluctuations of the market. Sometimes when the goods sold are to be paid for at some future time, a discount is allowed for payment before that time. 352. Several successive discounts are often allowed. The first is a discount from the list price, the second from the remainder, the third from the second remainder, and so on. 353. The price remaining after deducting all discounts is called the net price. WRITTEN EXERCISES 354. 1. Find the net price of an automobile listed at $2400, if the discounts are 25 %, 20%, and 10 %. Or, 90% of 80% of 75% of $2400=54% of $2400 $1296. The first discount reduces the price to 100% - 25%, or 75%, of the list price, the second discount reduces it to 80% of this, or to 80% of 75% of the list price, and the third discount reduces it to 90% of this, or to 90% of 80% of 75% of the list price. This equals 54% of the list price, and 54 % of $2400 $1296. = THIRD PROG. AR. - 14 2. In exercise 1, find the discounts in the order 10%, 20%, 25%; then in the order 20 %, 25%, 10%; and compare results. On the following bills find net amounts and total discounts · 3. $500, discounts 20% and 10%. 4. $750, discounts 30% and 20%. 5. $840, discounts 20 %, 10%, and 5%. 6. $932, discounts 25 %, 16%, and 5%. 7. $372.50, discounts 40 %, 10%, and 5%. 8. Find the net cost, to a dealer, of 280 pounds of Manila rope listed at 121 per pound, discounts 20% and 5%. 9. A plumber's bill for supplies amounted to $375, discount 40%, a second discount of 4% being offered for cash. He paid cash. What was the net amount of the bill? 10. How much less does a dealer pay for 360 yards of Brussels carpet listed at $1.25 per yard, if he makes his payment in 10 days with 4% off instead of in 30 days with 3% off? 11. What is the difference on a bill of $440 between a direct discount of 35% and successive discounts of 20% and 15% ? 12. Which gives the lower price for a piano listed at $600, a direct discount of 45% or successive discounts of 25%, 15%, and 5%? how much lower? 13. A manufacturer marked his goods down 121% from the list price on account of a fall in their market value, and allowed an additional discount of 4% for cash. What was the entire discount, expressed in per cent? 14. A retail druggist gets a discount of 40% from the wholesale list price and sells at the list price. What per cent of profit does he make? 15. What single discount is equivalent to two successive discounts of 15% and 10%? GOVERNMENT REVENUE 355. The expenses of government are paid, for the most part, by taxes, which are sums of money levied on persons, on property, or on business; and by duties or customs, which are charges on goods imported from other countries. The expenses of our national government consist of outlays for the army and the navy, for pensions, for the salaries of officers, etc. The state expends money for salaries of state officers, for educational purposes, and for the care of criminals and defective persons; while local governments need money for maintaining their various departments, such as Fire Department, Police Department, Department of Education, etc. Taxes 356. Fixed property, such as land and structures built upon it, is called real estate. 357. Movable property, such as money, bonds, mortgages, cattle, lumber, etc., is called personal property. 358. State and local taxes are usually a certain per cent of the estimated value of real estate and of personal property. In addition to the property tax, some states collect a poll tax (head tax), varying from $1 to $3, from each male citizen over 21 years of age. 359. The officers who estimate, or assess, the value of the property subject to taxation are called assessors. Property is not generally assessed at its full value. 360. The officer who collects the taxes, when there is a special officer for the purpose, is called a collector; he receives either a salary or a per cent of the tax collected. The collector's fee is sometimes paid by the person who pays the tax. In such cases it is not included in the amount of tax to be raised. 361. The rate of taxation is usually expressed as a number of mills on each dollar, or a number of cents on each hundred dollars of assessed valuation. A tax rate of 1 mill means a tax of 1 mill on each dollar, and is therefore a tax of 6%. 10 EXERCISES 362. 1. What is my tax on property assessed at $2000, if the tax rate is 10 mills on a dollar? Find the tax on the following property: Find the tax rate expressed as mills on a dollar: 363. 1. A union school district levied a tax of $3420 on an assessed valuation of $456,000. Find the tax rate; also the tax paid by a citizen whose real property was assessed at $9000 and personal property at $ 3000. SOLUTION $3420 ÷ $456,000 = .0075, or 71⁄2 mills on a dollar. Tax on $9000+ $3000, or $12,000 = .0075 of $12,000 = $90. 2. If the assessed valuation of a town is $12,346,000, what will be the rate of tax to raise $82,965.12? 3. How much must a citizen of this town pay, including the collector's fee of 1%, if his property is assessed at $12,500? 4. The assessed valuation of a city is $15,900,000, and the estimated cost of maintaining the schools is $27,825. Find the rate of school tax in mills. 5. A town wishes to raise by taxation $206,200. It is estimated to contain 9115 persons subject to a poll tax of $1 each. Its assessed valuation is $23,462,500. What will be the rate of property tax? SUGGESTION. First deduct the poll tax from the amount to be raised. 6. How much must a citizen of this town pay, if he is subject to a poll tax, and has real property assessed at $40,000 and personal property at $25,000, the collector's fee being %? 7. How much county tax must be raised to pay for a courthouse that cost $53,595, if the tax includes 2% for collection? SUGGESTION. $53,595 991% of the tax to be raised. 8. The taxable property in a certain city consists of $93,100,000 real estate and $36,400,000 personal property. The tax rate is 18.6 mills per dollar on an assessed valuation of 80% of the actual value. Find the amount of tax raised. 9. Find, to the nearest cent, the tax for each borough of Greater New York in a year when the valuation and tax rates |