COMMISSION.

284. 1. My agent sold a quantity of flour for $6000, If he charged 1% of the selling price for making the sale, how much did he receive for his services?

2. An agent bought a quantity of broadcloth for $4000. If he charged 2% of the cost of the goods for making the purchase, how much did he receive?

3. An agent sold a quantity of wool for $2000 and received 4% of the selling price for his services. How much did he receive; that is, how much was his commission?

4. An agent sold some property for $1000, receiving 3% fo. his commission. How much did he receive? After taking out his commission, how much was left; that is, what were the net proceeds?

285. A person who buys or sells goods, or transacts business for another, is called a Commission Merchant, or Agent, or Broker.

286. The compensation allowed a commission merchant is called his Commission, or Brokerage.

287. The sum left after commission and other expenses have been paid is called the Net Proceeds.

288. It is evident that:

The commission is reckoned at a certain rate per cent upon the value of the sales or purchases.

WRITTEN EXERCISES.

289. 1. A commission merchant sold a quantity of apples for $284, charging 5% commission. How much was his commission?

2. At 1 per cent, what was an agent's commission for selling $2150 worth of sugar? What were the net proceeds of the sale?

3. A commission merchant sold a quantity of cotton for $8245. What were the net proceeds, it the commission was 3% ?

4. At 1%, what was my agent's commission for buying city lots valued at $ 9200 ?

5. What is the commission at 21% for buying 400 yards of silk at $1.10 a yard?

6. A real estate agent was paid $120 for collecting rents to the amount of $2400. What was his rate of commission? 7. A broker bought $6000 worth of stock at a brokerage of %. What was the brokerage?

8. A man received $2688 as the net proceeds of a sale of $2800 worth of goods. Find the rate of commission allowed.

9. An agent charged 31% for buying goods. If his commission was $149.80, how much did he pay for the goods?

10. My agent sold goods for me to the amount of $2430. If he paid $44 for cartage and other expenses and charged 2% commission, what were the net proceeds?

11. A dealer in hay forwarded to his agent 240 tons of hay that cost him $12 a ton. If the hay was sold at $16 a ton at a commission of 13%, how much did the dealer gain?

12. An agent sold 4000 bushels of wheat and received 2% commission. If his commission amounted to $104.80, how much did he receive per bushel for the wheat?

13. The net proceeds of a sale were $ 401.10 and the commission was $18.90. What was the rate of commission?

14. A commission merchant's sales amounted to $225,000 during a certain year, and on this amount he averaged 21% commission. How much was his income that year?

15. Find the net proceeds of a sale of 240 barrels of flour at $7.50 per barrel, if the agent charged a commission of 21%, and paid $20.50 freight charges.

COMMERCIAL DISCOUNT.

290. A manufacturer agrees to make a deduction, for cash, equal to 20% of the price of each article. If I pay him cash for a bill of goods which by list prices amounts to $40, how much does he deduct from the bill; that is, what is the commercial discount?

How much must I pay for the goods; that is, what is the net amount of the bill?

291. A deduction from the price or value of anything is called a Commercial Discount.

292. Manufacturers and wholesale dealers issue price lists, from which prices they allow various discounts.

Sometimes several discounts are allowed the purchaser. In such cases the first discount is to be deducted; then the second is to be computed upon the remainder and deducted; and so on for each successive discount.

Thus, when the discounts allowed are 40%, 10%, and 5%, the 40% is first deducted; then from the remainder 10% is deducted; and from the last remainder 5% is deducted.

293. The amount of a bill less the discount is called the Net Amount.

WRITTEN EXERCISES.

294. Find the net amount of each of the following bills:

1. $400, discounts 20% and 10%.

2. $720, discounts 25% and 5%. 3. $640, discounts 40% and 25%.

4. $930, discounts 331% and 15%.

5. $1000, discounts 10%, 10%, and 5%.

6. A bill of goods as listed amounted to $800. What was due on the bill, discounts being 30% and 5% ?

7. What is the difference, on a bill of $500, between a discount of 20% and successive discounts of 10% and 10%?

INSURANCE.

295. 1. How much will it cost to secure myself against loss by fire, or to insure my buildings for $10,000, if I pay an annual sum of 1% to those who take the risk ?

2. What will be the cost of insuring a building for $5000 at 1%; that is, what will be the premium ?

3. What is the premium on goods worth $16,000, if they are insured for of their value at %?

4. I paid an annual premium of $80 for insuring my property at 2%. For how much was it insured?

5. How much do I pay in 2 years for having my life insured for $2000 at $25 per $1000.

296. Indemnity against loss or damage is called Insurance. Insurance is of two kinds, Property Insurance and Personal Insurance.

297. Indemnity against loss or damage by fire, or Fire Insurance, and against loss or damage by casualties at sea, or Marine Insurance, are some of the kinds of Property Insurance.

298. Indemnity against loss of life, or Life Insurance, and against injury occasioned by accident, or Accident Insurance, are varieties of Personal Insurance.

299. The contract between the insurance company and the person insured is called a Policy.

300. The policies issued by life insurance companies are of various kinds, the chief of which are the Life Policy and the Endowment Policy.

A policy that secures the payment of a sum of money at the death of the person insured is called a Life Policy.

A policy that secures the payment of a sum of money at a specified time, or at death if death occurs before the specified time, is called an Endowment Policy.

301. The sum paid for insurance is called the Premium.

WRITTEN EXERCISES.

302. 1. What is the annual premium on an insurance policy of $2640 at 11% ?

2. What is the annual premium on a life insurance policy for $5000 at $27.60 per $1000?

3. What is the premium for 3 years at 23% per year on a fire insurance of $4300 ?

4. How much premium do I pay in 6 years on a life policy of $4000 at $28.20 per $1000?

5. How much will it cost to insure a cargo of grain for $30,000 at $1.25 per $100 ?

6. My house which is worth $ 6000 is insured for of its value at 3%. How much premium do I pay in 5 years?

7. A mill worth $12,000 was insured for 3 of its value at %. What was the annual premium?

8. If an annual premium of $90 is paid for an insurance of $12,000, what is the rate of insurance?

9. The annual cost of a life insurance for $ 8000 is $236. What is the annual premium per $1000?

10. If $150 is paid for insuring property for 4 years at %, for how much is the property insured?

11. If a man pays $30 for insuring his household furniture for of its value at 3%, what is the value of his furniture?

12. A miller insures 600 barrels of flour for 2 of its value 28 at 21%, paying a premium of $54. How much is the flour worth per barrel?

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13. A man who has a twenty-year endowment policy for $3000 pays an annual premium of $30.70 per $1000. the expiration of the 20 years how much more will he receive from the company than he has paid to it in premiums, disregarding dividends and interest?