9. A fruit grower ships to his commission merchant 600 barrels of apples, which are sold at $3.50 per barrel. The agent deducts $43.90 freight charges, $27.75 cartage, 12¢ per barrel for cold storage, and 5% commission. Find the amount remitted.

10. My agent sends me a bill for $37800, which includes the cost of some land bought at $100 an acre and his commission of 5%. Find the number of acres purchased.

11. My purchasing agent in Chicago sends me a bill for $6776.60, covering cost of mining machinery, commission of 2%, and $65 for extra expenses. Find his commission and the cost of the machinery.

12. My agent retains 31% commission, pays freight charges of $16.80, storage and drayage of $9.75, and remits to me $1594.65. Find the amount of gross sales,

13. An investment broker in Denver receives a draft for $23935. This includes a commission of 2% for investing, and an allowance of $175 for traveling expenses.

amount invested.

INSURANCE

Insurance is security against loss or damage.

Find the

A merchant owns a store, uninsured, valued at $5000. If it is burned, who will bear the loss? An insurance company agrees to insure the store for $4000 at 1% annually. In case the store is totally destroyed by fire, how much is the company expected to pay to the merchant? How much must the merchant pay annually to the company to guarantee this loss? The policy is a written contract between the person insured and the insurance company.

The premium is the sum paid for the insurance. The rate is a specified number of cents or dollars per $100 of insurance, or a certain per cent of the sum insured.

The term is usually a year or a period of years. Short rates are rates charged when the term is less than one year.

Property Insurance

The principal kinds of property insurance are fire insurance and marine insurance. Other forms are burglar insurance, insurance against bad debts, etc.

1. A frame dwelling with a tin roof is insured for $2800 for one year at 1%. Find the premium.

Written Work

Comparative Study

The amount insured corresponds to what

$2800, amount insured term in Percentage?

.01, rate

$28.00, premium

The rate corresponds to what term in Percentage?

The premium corresponds to what term in Percentage?

2. A brick house is insured for $4000 at 60% on the $100. Find the rate of premium and the annual premium.

3. If the three-year rate is twice the rate for one year, find the cost of insuring a brick dwelling for $6500 for 3 years when the annual rate is 45¢ per $100.

4. A store building is insured for $8500 and the annual premium is $212.50. Find the rate per cent of premium and the annual cost per $100 of insurance.

5. A school board pays annually $45 for $6000 of fire protection on a school building. Find the rate of premium.

6. The premium on a dwelling insured for $5500 is $38.50 for three years. Find the average rate for a year.

7. If the premium on a plate-glass policy is $9.50 and the rate is %, find the face of the policy.

8. Mr. Lawrence wrote a check for $31.50 to pay the insurance on his dwelling for 3 years. If the house cost $2400 and was insured for of its value, find the rate for the term.

9. A farmer insured his house for $2700 at 11%, his barn for $1200 at 3%, and his furniture for $900 at 1%.

premium did he pay?

What

10. A drug store is insured for of its value at 2%. What is the value of the store if the premium is $192?

11. The premium on 8000 bushels of wheat, valued at 90¢ per bushel and insured at of its value, is $57.60. Find the rate of insurance.

12. A jewelry store is insured for $20000 and its contents for $27000. The premium is $705. What is the rate

of insurance?

13. A clothier insured his stock of goods, valued at $12000, for 1 year at 11%. At the end of 6 months he surrendered his policy. If the "short rate" for 6 months was 90¢ per $100, how much premium was returned ?

14. A farmer insured his buildings for $3500 at 11% for a term of 3 years. After he had paid the premium for 4 terms the buildings were totally destroyed by fire. What was the farmer's loss? the company's loss?

15. A vessel worth $27000 is insured for of its value at 31%. In case of shipwreck, what is the company's loss? What is the owner's loss?

16. How much insurance, at %, can be placed on a building for $42?

17. A business block valued at $300000 was insured in 4 different companies, the rate of each being 1%. The first company took $50000; the second, $60000; the third, $90000; and the fourth the remainder. After the premiums had been paid four times, the block was damaged by fire to the amount of $120000. What was the loss of each com

pany?

Personal Insurance

The principal kinds of personal insurance are life insurance and accident insurance.

Kinds of life insurance policies:

1. A life policy is one that guarantees a fixed sum of money on the death of the insured. The premiums on a life policy run for life.

2. A life policy with a twenty-year settlement is one that guarantees, after twenty annual payments have been made, either a cash surrender value, or a paid-up policy, payable at death.

3. An endowment policy is one in which the face of the policy and the profits on the premiums are guaranteed to the insured if living at the end of a specified time, or to his estate if his death occurs within the time.

4. A term policy is one in which the face of the policy is paid, providing the insured dies within the time the policy runs. Otherwise nothing is paid.

Most insurance companies pay dividends on the premiums already paid, thus lessening the amount of the annual premium.

The premium is always so much on $1000 of insurance; thus, a premium of $23.40 means $23.40 on $1000.

The age of the insured is always reckoned according to the age at his nearest birthday.

This table shows the annual premiums for each $1000 insurance in a leading insurance company.

AGE ORDINARY LIFE 20-PAYMENT LIFE 20-YEAR ENDOWMENT 20-YEAR TERM

Dividends vary according to the number of premiums that have been paid. It is fair to estimate that the dividends on an ordinary life policy after 20 annual premiums have been paid, will amount to about 25% of the sum of the annual premiums.

Written Work

Rates as given in the table on page 186.

1. What is the premium on an ordinary life policy of $5000 at the age of 30?

2. A man at the age of 25 takes out a $2000 ordinary life policy. If he dies after paying 16 premiums, what per cent of the face of the policy has been paid in premiums?

3. If, in example 2, the insured had taken a 20-payment life policy, what per cent of the face of the policy would have been paid in premiums?

4. A young man at the age of 20 took out a 20-payment life policy for $2000. The dividends at the end of 20 years amounted to $142 per thousand. What was the net cost of this insurance at the expiration of this policy, if the interest on the premiums is not considered?

5. What is the premium on a 20-year endowment policy for $5000 at the age of 40?

6. The first annual premium on a 20-year endowment policy for $8000 amounts to $453.60. What is the age of

the insured?

7. If a man 25 years old takes out a 20-term policy for $3000, how much will he have paid for his insurance at the close of the term?

8. A man at the age of 25 took out a 20-payment life policy for $1000. His dividends for the 20 years amounted to $150.45. What was the amount of his premiums, less the

dividend?