York to New Orleans, and paid 14 per cent. insurance: what was the amount of premium?

4. A powder mill worth $925, was insured at 15 per cent. what was the annual amount of premium?

5. A merchant shipped a lot of goods worth $1560 from Boston to Natchez, and paid 13 per cent. insurance : what amount of premium did he pay?

6. A gentleman obtained a policy of insurance on his house and furniture to the amount of $2500, at 34 per cent. per annum: what premium did he pay a year?

7. A man owning a sixteenth of a whale ship, which cost him $2750, got it insured at 7 per cent. for the voyage: how much did he pay?

8. The owner of a schooner worth $3800, obtained insurance upon it, at 5 per cent. for the season: what amount of premium did he pay ?

9. A crockery merchant having a stock of goods valued at $7500, paid 2 per cent. for insurance: how much premium did he pay a year?

10. A merchant shipped $3765 worth of flour from Cincinnati to New York, and paid 13 per cent. insurance: how much premium did he pay ?

11. What is the annual premium for insuring a store worth $7350, at per cent.?

12. An importer effected insurance on a cargo of tea worth $65000, from Canton to Philadelphia, at 3 per cent. how much did his insurance cost him?

13. A manufacturer obtained insurance to the amount of $76500 on his stock and buildings, at per cent: how much premium did he pay annually?

14. A policy was obtained on a cargo of goods valued at $95600, shipped from Liverpool to New York, at 21 per cent. what was the amount of premium?

15. The owners of the whale ship George Washington obtained a policy of $58000 on the ship and cargo, at 7 per cent. for the voyage: what was the amount of premium?

16. A gentleman paid $60 annually for insurance on his house and furniture, which was 2 per cent. on its value: what amount of property was covered by the policy?

Note. This example is similar to those of Problem III, in interest. (Art. 254.)

Solution. Since the rate of insurance is 2 per cent, or .02, it is plain that $60 is of the amount insured. Now if $60 is 10, 106 is half as much, or $30; and 100 is $30 × 100, or $3000. Or thus: 60.02—3000.

Ans. $3000.

PROOF. $3000 x .02-$60, which was the annual premium paid.

17. If I pay $250 premium on silks from Havre to New York, at 1 per cent., what amount of property does my policy cover?

18. A merchant paid $1200 premium, at 2 per cent. on a ship and cargo from London to Baltimore, which was lost on the voyage: what amount should he recover from the Insurance Company?

19. If a man pays $60 premium annually for the insurance of his house, which is worth $3000, what rate per cent. does he pay?

Note. This example is similar to those of Problem II, in interest. (Art. 253.)

Solution. $60-$3000.02. Ans. 2 per cent.

PROOF. $3000 x.02-$60, which is the premium paid.

20. A merchant paid $40 premium for insuring $5000 on his stock what rate per cent. did he pay?

:

21. If a man pays $75 for insuring $15000, what rate per cent. does he pay ?

22. If the owner pays $2800 for insuring a ship worth $40000, what rate per cent. does he pay?

23. A blacksmith owns a shop worth $720: what amount must he get insured annually, at 10 per cent., so that in case of loss both the value of the shop and the premium may be repaid?

Analysis. Since the rate of insurance is 10 per cent., on a policy of $100, the owner would actually receive but $90; for he pays $10 for insurance. The question then resolves itself into this: $720 is of what sum

90

?

If 720 is 90

1

100' 100 is 720÷90=8, and 100 is 8×100— 800. Ans. $800.

PROOF.-$800x.10 $80, the premium he would pay, and $800-$80-$720, which is the value of his shop.

24. If I send an adventure to China worth $6250, what amount of insurance, at 8 per cent., must I obtain, that in case of a wreck I may sustain no loss by the operation?

25. What amount of insurance must be effected on $11250, at 5 per cent,, in order to cover both the premium and property insured?

PROFIT AND LOSS.

266. Profit and Loss in commerce signify the sum gained or lost in ordinary business transactions. They are reckoned at a certain per cent. on the purchase price, or sum paid for the articles under consideration.

MENTAL EXERCISES.

1. A merchant bought a barrel of flour for $6, and sold it at a profit of 10 per cent.: how much did he sell it for?

Suggestion. Since he made 10 per cent. profit, if we add 10 per cent. to the purchase price, it will give the selling price. Now 10 per cent. of $6 is 60 cents, (Art. 225,) which added to $6, make $6.60. Ans. He sold it for $6.60.

2. A grocer bought a box of oranges for $5, and sold them for 12 per cent. profit: how much did he receive for his oranges

?

3. A farmer bought a ton of hay for $9, and sold it

QUEST.-226. What is meant by profit and loss? How are they reck

oned?

for 10 per cent. more than he gave: how much did he sell it for?

4. Bought a sleigh for $12, and sold it at a loss of 8 per cent. how much did I receive for the sleigh?

Solution. 8 per ct. of $12, is 96 cts.; and $12-96 cts. leaves $11.04 Ans.

5. Bought a box of honey for $5, and having lost a portion of it, sold the remainder at 11 per cent. loss: how much did I receive for it?

6. A shop-keeper bought a piece of calico for $7, and sold it at 12 per cent. profit: how much did he sell it for? 7. A lad bought a sheep for $3, and on his way home was offered 15 per cent. for his bargain: how much was he offered for his sheep?

8. A farmer bought a colt for $20, and offered to sell it for 5 per cent. less than he gave: how much did he ask for it?

9. A gentleman bought a horse for $100; after using it for awhile, he sold it at 7 per cent. loss: how much did he get for his horse?

10. A man bought a building lot for $150, and in consequence of the rise of property, sold it for 10 per cent. advance how much did he get for it?

11. A hackman bought a carriage for $200, and after using it for one season, sold it for 15 per cent. less than he gave for it how much did he sell it for?

12. A man bought a house for $800, and sold it the next day for 10 per cent. advance: how much did he sell it for?

EXERCISES FOR THE SLATE.

CASE I.

1. A merchant bought a quantity of grain for $75, and sold it for 8 per cent. profit: how much did he gain by the bargain?

Solution. $75.08 $6.00. (Art. 225.) Hence,

=

267. To find the amount of profit or loss, when the purchase price and rate per cent, are given.

Multiply the purchase price by the given per cent. as in percentage; and the product will be the amount gained or lost by the transaction. (Art. 225.)

2. A man bought a sleigh for $60, and afterwards sold it for 10 per cent. less than cost: how much did he lose? 3. A grocer bought a cask of oil for $96.50, and retailed it at a profit of 6 per cent.: how much did he make on his oil?

4. A pedlar bought a lot of goods for $215, and retailed them at 20 per cent. advance: how much was his profit ?

5. A merchant bought a cargo of coal for $450, which he afterwards sold for 121⁄2 per cent. less than cost: what was the amount of his loss?

6. A manufacturer purchased $1000 worth of wool, and after making it up, sold the cloth for 25 per cent. more than the cost of the materials: how much did he receive for his labor?

CASE II.

7. A man bought a span of horses for $350, and wished to dispose of them for 12 per cent. profit: how much must he sell them for ?

Operation.
$350 purchase price.
.12 per cent. profit.

$42.00 gained.

Ans. $392 selling price.

Reasoning as before, he must sell them for the purchase price, together with 12 per cent. of that price. Having found 12 per cent. of $350, (Art. 225,) add

it to the cost, and the sum $392, is manifestly the selling

price.

8. A stage proprietor bought a coach for $480; find.

QUEST.-267. How is the amount of profit or loss found, when the cost and rate per cent. are given?