5. What sum must be invested in Kentucky 6's, at 103, to yield $786 a year, brokerage %? Ans. $13525.75.

6. When the new 4's are selling at 105, what must I invest in them to secure an income of $983.25 in currency, gold at 1094, brokerage %? Ans. $21050.

7. If I sell $8000 Ohio 6's at 118 and buy sufficient Georgia 7's at 103 to yield $560 income, how much shall I have left, brokerage at the usual rate? Ans. $1160.

8. What must I pay for Georgia 6's to realize 7% on the investment? What must I pay for Reading coupon 7's to give an income of 63%? Ans. 85; 10319.

What

must be the price of

Ans. 984; 913.

9. If gold is at 115, what must be paid for 5-20's to realize 7% on the investment? 10-40's to yield 6%, gold being 110? 10. What must be the price of gold so that 5-20's at 108, may realize 7%? What must be the price of gold, so that I may realize 5% from 10-40's bought at 105? Ans.126; 105.

11. I bought a lot 50 ft. front and 85 ft. deep, at a groundrent of $5.40 per foot front; what would be the cost of the property, the ground-rent being 6% of it? Ans. $4500.

12. How many shares of North Pennsylvania R. R., at 49, must be sold, that the proceeds, invested in Pennsylvania State 6's, at 115, may give an income of $600, brokerage being deducted? Ans. 237 shares; $8.374 surplus.

13. Mr. Jackson sold $15000 Union Pacific 7's at 101, and invested part of the proceeds in U. S. 6's of '81 at 1171⁄2, sufficient to produce an income of $750 in gold, and deposited the remainder, brokerage deducted, in bank; what was his oank deposit? Ans. $412.50.

14. I have some California 7's, which bring me in an income of $546, but preferring an investment nearer home, I decide to exchange them for Philadelphia 6's; if the California bonds are worth 117 and the Philadelphia 105, how much must I add to my investment to secure the same income, brokerage not considered? Ans. $429.

CASE III.

449. Given, the market value, and the income or rate of dividend, to find the rate of interest on the investment.

1. What per cent. of income will be realized by purchasing

7% bonds at 95?

SOLUTION.-$1 of stock will cost $.95, and pays $.07; if on $.95 the gain is $.07, on $1 it. is as many per cent. as .07.95, or 77%.

OPERATION.

.07.95.071

Rule.-Divide the annual income or dividend of the stock by its market value, to find the rate of income.

WRITTEN EXERCISES.

2. What is the rate of income of New York Central 6's bought at 106? Ans. 5%.

3. When U. S. 5-20's are at 112, and gold at 110, what per cent. will these bonds yield? Ans. 51%.

4. I bought an irredeemable ground-rent of $54 per annum for $850; what per cent do I realize? Ans. 6%.

Ans. The 10-40's.

5. Which is the better investment, 10-40's at 113, or the new 44's at 1103? 6. Mr. Hull bought a ground-rent of $450 for $6575; what rate of income does it pay? Ans. 63%. 7. If I buy a $5000 mortgage at 24% discount, interest at 6%, what rate of income do I receive on it? 8. Which is the more profitable, Missouri 5-20's at 115, gold being 110?

9. Mr. Rogers bought Michigan 7's at wards exchanged them for 5-20's at 1164; better investment, gold selling at 112?

Ans. 6%.

6's at 102, or Ans. Mo. 6's. 112, and afterwhich was the Ans. Mich. 7's.

10. Wishing to make a permanent investment, I am recommended to take either 5's at 75, 6's at 85, or 7's at 90: which is the best investment?

Ans. 7's at 90.

11. Gold being at 105, which pays the better interest on an investment, U. S. Pacific 6's at 108, or 5-20's at 110?

12

Ans. 5-20's.

GENERAL TAXES.

450. A Tax is a sum of money assessed on persons or property for public purposes.

451. Taxes are assessed by the national government, a etate, county, or town.

452. A Property Tax is a tax upon property. Property is of two kinds; Real Estate and Personal Property. 453. Real Estate is immovable property; as land, buildings, etc. Personal Property is movable property; as

money, stock, furniture, etc.

454. A Poll Tax is a tax on the person. It is assessed in some states on each male citizen not exempt by law.

455. An Assessment Roll is a list or schedule containing the names of persons taxed, the valuation of their property, and the amount of their taxes.

456. An Assessor is an officer who appraises the property and prepares the assessment roll.

457. The Quantities to be considered are: 1. The Taxable Property; 2. The Rate of Taxation; 3. The Amount of Тах.

Real estate is usually assessed by the proper officer for not more than or of its real value. The value of personal property may be given in by the owner under oath, or if he neglects to do this, it is valued by the officer.

The term poll is from the German polle, the head. A poll tax is a capitation tax, from the Latin caput, the head. In some States the income from a person's occupation is assessed at a small sum and taxed. Money on interest secured by bond and mortgage is taxed in some States.

After the taxes have been assessed, each person receives a notice of his taxation, stating the day of appeal, when he may appear before the proper officers and show reasons for correcting any mistakes that have been made.

NOTE.-Government Taxes are taxes levied by the government, including Internal Revenue and Duties. They will be considered under the head of Duties and Customs.

CASE I.

458. Given, the taxable property and the rate of taxation, to find the amount of tax.

1. The taxable property of a town is $794800, and the rate of taxation $.009 on a dollar;

SOLUTION.-If the tax is $.009 on $1, on $794800 it will be 794800 times $.009, or $7153.20.

what is the tax?

OPERATION.

$794800 x .009= $7153.20

Rule.-Multiply the amount of taxable property by the

rate, to find the tax.

NOTE. If there is a poll tax the sum produced by it should be added to the property tax to give the whole tax.

WRITTEN EXERCISES.

2. The real estate of a town is valued at $640876, and the personal estate at $750472; there are also 250 polls, at $1.50 each; what is the whole tax, the rate being 7 mills on a dollar? Ans. $10114.436.

459. Table.-In the assessment of taxes in a town, city, etc., a table is usually constructed by which the labor of calculation is greatly facilitated. The following table is based on the rate of $.015 to the dollar:

3. Find by the table A's tax, whose property is $7580, and who pays for 5 polls at the rate of $1.50 each.

4. Find B's tax, whose property is $9750, and who pays for 2 polls. Ans. $149.25.

5. A is worth $7895, and his sister $5634; what is the aggregate amount of their taxes? Ans. $202.935.

6. Mr. Mark's property is assessed at $8500; he pays for 1 poll and .1% on the income from his occupation, assessed at $800; what was his entire tax? Ans. $130.20.

7. Mr. Sidney's real estate is valued at $75000 and his personal property at $8670, both of which are assessed for of their value; he pays for 4 polls at $1.50 each, and also % on an estimated income of $1200; what is his entire tax? Ans. $845.70.

8. Mr. Shank's property was assessed at $3500 last year, and he paid .25% village tax, 1.025% county tax, .45% school tax, and $1.25 poll tax; what amount of taxes did he pay? Ans. $61.62.

9. I find I have been assessed as follows: Real estate, $50,000; personal property, $3600; money at interest, $15,000; income from occupation, $1500; and 3 gold watches. I obtain an abatement of on the real estate, on personal property, $5000 on money at interest, for occupation, and 1 geld watch; how much does this lessen my tax, the rate being $.004, and one dollar for each watch? Ans. $122.95.

CASE II.

460. Given, the rate of taxation and the tax or the amount left after payment of tax, to find the amount assessed.

1. What is the assessed value of property taxed $37.50, at the rate of 5 mills on a dollar?

SOLUTION.-At 5 mills on the dollar, .005 times the amount assessed equals the tax, which is $37.50; hence the amount equals $37.50 divided by .005, which we find is $7500.

OPERATION.

$37.50

.005

=

= $7500

Rule I.-Divide the tax by the rate, to find the amount assessed.

Rule II. Divide the amount left after payment of lax by 1 minus the rate.