12. After reading the advertisement, below John's father asked him to find out which was the best bargain as far as the price was concerned. $50 $50 SUITS—NOW $35 $65 $75 silk lined suits at $50 John worked out the answer by mathematics and said that the $75.00 suit was the best bargain. Was he right? Find the per cent of reduction on each suit and tabulate the facts as follows: 14. Are the re Our entire stock of Fancy Braids, ductions in the ad Leghorns, Panamas. The very finjoining advertise est makes ment uniform? $3.00 Hats now. $1.50 15. Mary paid $4.00 Hats now $2.00 $2.50 for a pair of $5.00 Hats now. $2.50 roller skates before $6.00 Hats now $3.00 Christmas. After Christmas her sis $8.00 and up Hats now $4.00 ter Jane bought the same make of skates for $1.78. By what per cent was the price reduced? 16. A dining-room set bought on installments is marked $145. The first payment is 25% down and the remainder must be paid in 14 equal monthly installments. How much is the first payment, and how much is each of the other payments? If the set is bought for cash at a discount of 10%, what is the cash price? 17. A wholesale merchant publishes a catalog containing prices of his goods and allowing his customers a discount. In the catalog, the old price is called list price, the reduced price after the discount has been subtracted is called net price. Thus the net price is equal to the list price diminished by the discount. Find the net price in the table below: List Price Net Price $ 60 $ 48 $150 $265 $345 Rate of Discount 25% 33% 163% 20% 40% 18. Many manufacturers issue catalogs with list prices subject to discount for cash payment or payment within a given date. Terms under which discounts are paid are sometimes stated thus: 30 days; 15 days less 2%. This means that bills must be paid in 30 days and that a 2% discount will be allowed if the bill is paid within 15 days. Compute the net amount for the following sale of goods: 19. Wholesale dealers and manufacturers often give two or more discounts. These are computed in succession. For example, an article listed at $565 is subject to discounts of 25% and 20%. Solution 1: 25% of $565=$141.25 20% of $423.75=$ 84.75 :: Net price = $423.75-$84.75=$339. Solution 2: A single discount equal to several successive discounts may be found as follows: 1. Find the sum of the two given discounts, i.e., 25%+20%=45%. 2. Subtract the product of the given discounts, i.e., 16-150 X 10 = 15-16=40%. 3. Hence, the required single discount is 40%. :: Net price = $565 – 40% of $565 =$339. 20. Find the net prices in the following list as shown in Solution 1. Price List Discounts Net Price $18.25 20%, 10% 21. Change each discount series in Exercise 20 to a single discount and find the net price. 22. Supplies purchased by a millinery establishment amount to $134.60. Find the net price if a 40% discount is allowed from the list price and 15% from the remainder. COMMISSION 152. Meaning of commission. A sale is often made by an agent for the producer. For example, a fruit grower ships his fruit to a firm in the city to sell it for him, a manufacturer sends out a traveling salesman to take orders for his goods, and a property owner employs a realestate agent to sell his property. Payments for such sales may be made in terms of an agreed per cent of the money for which the goods are sold. The amount so paid is called a commission. PRODUCE G6S EXERCISES 1. A real-estate agent sells a building for $15,600, receiving a commission of 3%. How much money does he receive? 2. A farmer shipped 2,000 bushels of corn to be sold at 55 cents per bushel. If the firm selling the corn charged a commission of 5%, what was the amount received for making the sale? 3. Find the amount of the sales made by an agent who clears $3500 a year selling on a commission of 11%. 4. How much money should an agent remit to the owner of a house which the agent sells for $6250 at a 5% commission? INTEREST FORMULA 153. Interest. Further use of percentage is made in loaning and borrowing money. A man borrows $500 from a bank. For the use of this money he promises to pay each year 6% of the sum he borrowed. The sum he borrows is the principal. The money he pays for the use of the principal is called interest. The per cent to be paid is the rate of interest. mm A SIMPLE FORM OF A PROMISSORY NOTE |