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3. What per cent. on his money will a man receive annually if he invest in N. Y. C's at 105%?

Ans. 5%.

4. What is the rate of income upon money invested in Ans. 8%.

Missouri 6's at 75%? 5. Purchased U. S. 5-20's of '84 at 1074%, brokerage 1%; what is the income on the investment? Ans. 58%.

6. Which is the better investment, U. S. 10-40's at 981%, or U. S. 5-20's of '85 at 108%, brokerage 1% in cach?

CASE IV.

268. To find the price at which stock must be purchased to obtain a given rato upon the investment.

1. At what price must 6% stocks be purchased in order to obtain 8% income on the investment?

OPERATION.

$.06.08= = $.75

ANALYSIS. Since $.06, the income of $1 of the stock, is 8% of the sum paid for it, we have (235) $.06 ÷ .08 75%, the purchase price.

=

RULE. Divide the annual rate of income which the stock bears by the rate required on the investment; the quotient will be the price of the stock.

EXAMPLES FOR PRACTICE.

2. What must I pay for Missouri 6's that my investment may yield 9% annually?

Ans. 66%

3. What rate of premium does 6% stock bear in the market when an investment pays 5%?

Ans. 20%. 4. At what rate must I buy U. S. 10-40's that I may receive 6% on my investment? · Ans. 831%.

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5. At what rate of discount must U. S. 5-20's of '81 be purchased that I may secure 7% annually on the investment? Ans. 284%.

What is Case IV? Explanation? Rule?

GOLD INVESTMENTS.

269. Currency is a term used in commercial language, First, To denote the aggregate of Specio and Bills of Exchange, Bank Bills, Treasury Notes, and other substitutes for money employed in buying, selling, and carrying on exchange of commodities between various nations. Second, To denote whatever circulating medium is used in any country as a substitute for the government standard. In this latter sense, the paper circulating medium, when below par, is called Currency, to distinguish it from gold and silver. If, from any cause, the paper medium depreciates in value, as it has done in the United States, gold becomes an object of investment, the same as stocks. In commercial language, gold is represented as rising and falling; but gold being the standard of value, it can not vary. The variation is in the medium of circulation substituted for gold; hence, when gold is said to be at a premium, the currency, or circulating medium, is made the standard, while it is virtually below par.

CASE I.

270. To change gold into currency.

1. How much currency can be bought for $150 in gold when gold is at 170%?

OPERATION.

$1.70 x 150 = $255.

ANALYSIS. Since a dollar of gold

=

$255

is worth $1.70 in currency, there can be as many times $1.70 of currency bought as there are dollars of gold. Therefore, $1.70 × 150 is the amount of currency which can be purchased for $150 in gold. RULE. Multiply the value of one dollar of gold in currency by the number of dollars of gold.

2. What is the value in current funds of $250 gold, when gold is 147%? Ans. $367.50.

3. What is the value in current funds of $320.50, when gold is 1374%? Ans. $440.CS.

What is Currency? Case I? Explanation? Rule?

4. When gold is at. a premium of 33%, how much will $2500 in gold cost? Ans. $3325.

5. A holds $8000 U. S. 10-40's; what is his annual income

in currency if gold is 138?

Ans. $552. 6. What is the yearly income in currency from $9500 of U. S. 5-20's of '84 when gold is 140 ?

Ans. $798.

to pay $4500

7. A purchased a house, for which he was in currency, or $3000 in gold at his option. Will he gain or lose by accepting the latter offer, gold being 1471%, and how much in currency?

CASE II.

Ans. Gain $75.

271. To change currency into gold.

1. How much gold can be purchased for $75 current funds, gold being at 150%?

OPERATION.

$75 $1.50 = 50.

ANALYSIS. A dollar of gold cost $1.50 in currency, therefore there can be as many dollars of gold purchased for $75 in currency as $1.50 is contained times in $75. RULE. Divide the amount in currency by the price of gold. 2. What is the value in gold of a dollar in currency, when gold is quoted at 1381%? Ans. $725

3. Gold being the standard, what is the rate of discount upon current funds, when gold is at 145, 147, 1951, 280%? Ans. to last, 644%.

4. How much gold can be purchased for $4181 current funds, when gold is quoted at 148%? Ans. $2825.

5. If I sell prints for 24 cents per yard, in currency, what is the price in gold, gold being at 160%? Ans. 15 cents. 6. Sold $5900 U. S. 10-40's at 90%, and invested the proceeds in gold at 147; how much gold did I purchase? Ans. $3600.

7. What is the value in gold of a dollar, in currency, when gold is at 145% ? Ans. $.6888. 8. I invested $792 of currency in gold, when gold is quoted at 165%. How much gold did I purchase? Ans. $480.

What is Case II? Explanation? Rule?

9. What is gold quoted at, when a dollar in currency is worth 30 cents in gold? 45 cts.? 54 cts.? 60 cts.? 74 cts.?

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10. How many yards of cloth at $3.50 in gold can be bought for $126, currency, when gold is at 140? Ans. 254.

11. Bought flour at $11.75 per barrel in currency, when gold was at 150%, and afterwards sold it at $10.35 in currency, when gold was 135%; did I gain or lose, and how much, on a sale of 300 barrels ? Ans. $50. 12. Which is the better investment, a bond and mortgage at 7%, or U. S. 5-20's of '84 at par, gold being 140%; and what per cent. in gold? Ans. U. S. 5-20's 1%.

13. Sold $51100 7-30 Treasury-Notes, at 104%, and invested the proceeds in gold at 146%, with which I bought U. S. 10-40's at 70% in gold. Will my. yearly income be increased, or diminished by the transaction, and how much in gold? Ans. Increased $45.

PROFIT AND LOSS.

272. Profit and Loss are commercial terms, used to express the gain or loss in business transactions, which is usually reckoned at a certain per cent. on the prime or first cost of articles.

CASE I.

273. To find the amount of profit or loss, when the cost and the gain or loss per cent. are given.

1. A man bought a horse for $135, and afterward sold him for 20% more than he gave; how much did he gain?

OPERATION.

$135 × .20 = $27, Ans. Or, %; $135 × = $27.

ANALYSIS. Since $1 gains 20 cents, or 20%, $135 will gain $135 ×.20

= $27. Or, since 20% of the cost.

equals, the whole gain will be RULE. Multiply the cost by the rate per cent. expressed decimally. Or,

Take such part of the cost as the rate per cent. is part of 100.

What is meant by profit and loss? Case I. is what? Give explanation. Rule.

EXAMPLES FOR PRACTICE.

2. A grocer bought a hogshead of sugar for $84.80, and sold it at 124 per cent. profit; what was his gain?

3. A miller bought 500 barrels of wheat at $1.15 a bushel, and he sold the flour at 16 per cent. advance on the cost of the wheat; what was his gain? Ans. $95.834.

4. Bought 76 cords of wood at $3.624 a cord, and sold it so as to gain 26 per cent.; what did I make?

5. A hatter bought 40 hats at $1.75 apiece, and sold them at a loss of 14 per cent.; what was his whole loss?

6. A grocer bought 3 barrels of sugar, each containing 230 pounds, at 81 cents a pound, and sold it at 18 per cent. profit; what was his whole gain, and what the selling price per pound? Ans. Gain, $10.35; price per lb., 93 cents.

7. A sloop, freighted with 3840 bushels of corn, encountered a storm, when it was found necessary to throw 37 per cent. of her cargo overboard; what was the loss, at 62 cents a bushel ? Ans. $900 loss.

8. A gentleman bought a store and contents for $4720; he sold the same for 12 per cent. less than he gave, and then lost 15 per cent. of the selling price in bad debts; what was his entire loss? Ans. $1209.50.

9. A man commenced business with $3000 capital; the first year he gained 22 per cent., which he added to his capital; the second year he gained 30 per cent. on the whole sum, which gain he also put into his business; the third year he lost 16 per cent. of his entire capital; how much did he make in the 3 years? Ans. $981.25.

CASE II.

274. To find the gain or loss per cent., when the cost and selling price are given.

1. Bought wool at 32 cents a pound, and sold it for 40 cents a pound; what per cent. was gained?

Case II is what? Give explanation. Rule.

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