COMMISSION AND BROKERAGE. 198. A Commission Merchant, or Agent, is a person who transacts business for another. 199. A Broker is a person who makes or concludes bargains for a fee, or rate per cent. 200. Commission is the percentage paid a commission merchant, or agent, for the transaction of busi ness. 201. Brokerage is the percentage paid a broker for the transaction of business. 202. Commission and Brokerage are reckoned in the same manner. 203. To find the commission or brokerage. 1. A commission merchant sells coal to the amount of $550; what is his commission, at 2 per cent.? OPERATION. $550 .02 Since the commission on $1 is .02 of a dollar, on $550 it will be 2 hundredths of $550, or $550 × .02, which is $11. Therefore, his commission on $550, at 2 per cent., Ans. $11.00 is $11. Rule. Multiply the given sum by the number of per cent., expressed decimally. What is a Commission Merchant, or Agent? A Broker? What is Commission? Brokerage? Explain the operation. Repeat the Rule. Examples. 2. How much must be paid for exchanging $350 uncurrent bills, at 3 per cent. brokerage? Ans $10.50. 3. An agent sells goods to the amount of $1244; what is his commission, at 2 per cent.? 4. An auctioneer sold property to the amount of $1780; what were his fees, at 14 per cent. ? PROFIT AND LOSS. 204. Profit and Loss is the process of estimating the gain or loss on capital employed in business. 205. To find the amount of profit or loss at any per cent. 1. If a merchant buys goods to the amount of $1248, and sells them at a profit of 20 per cent., how much does he gain? OPERATION. $1248 Ans. $249.60 Since the profit is 20 per cent. of $1248, it must be 20 hundredths of $1248, or $1248 X .20, which is $ 249.60. Therefore, the gain on $1248, at 20 per cent. profit, is $ 249.60. Rule. Multiply the number upon which the percentage is reckoned, by the number of per cent., expressed decimally. What is Profit and Loss? Repeat the Rule. Examples. 2. A cistern containing 120 gallons lost by leakage 5 per cent. of its contents; how much was the loss? Ans. 6 gallons. 3. If United States stocks bought for $300 should advance 9 per cent., what would be the gain? Ans. $28.50. 4. Bought a horse for $216, and sold him at a loss of 10 per cent. ; how much was the loss ? Ans. $21.60. 206. To find the rate per cent. of gain or loss. 1. If I buy a barrel of flour for $8 and sell it for $10, what is the gain or loss per cent. ? self, 1 is of 100 per cent., and 2 is of 100 per cent., which is of 100 per cent., or 25 per cent. Therefore, if I buy a barrel of flour for $8 and sell it for $10, I gain 25 per cent. Rule. Multiply the number denoting the gain or loss by 100, and divide by the number on which the gain or loss is reckoned, Explain the operation. Repeat the Rule. Examples. 2. Bought a cord of wood for $6, and gained in selling it $.72; what was the gain per cent. ? 3. When molasses is bought for 90 cents a gallon, and sold at 108 cents, what is the gain per cent.? 4. Bought a horse for $125, and sold it for $12.60 less than cost; what per cent. was the loss? 5. If I sell a farm which cost me $5000 for $4700, what is the loss per cent? Ans. 6 per cent. INTEREST. 207. Interest is percentage allowed for the use of money, or for value received. 208. The Principal is the sum on interest. 209. The Rate of interest is the per cent. allowed on the principal for one year, or any given time. 210. The Amount is the sum of the principal and interest. 211. Legal Rate is the rate per cent. established by law. The legal rate in most of the States and in the United States Courts is 6 per cent. In New York, Michigan, Wisconsin, Minnesota, Iowa, South Carolina, and the parts of New Jersey near New York City, it is 7 per cent.; in Louisiana it is 5 per cent., in a few States 8 per cent.; and in some States as high as 10 per cent. The rate for one year, and at 6 per cent., is to be understood in this book when no other is named. What is Interest? The Principal? The Rate? The Amount ? Legal Rate? What rate is to be understood when no other is named? 212. Since the interest of $1, at 6 per cent. for 1 year, or 12 months, is 6 cents, for 1 month it will be of 6 cents, which is 5 mills, and for 2 months, 2 times 5 mills, or 1 cent; also, Since the interest for 1 month, or 30 days, is 5 mills, the interest for 6 days, or of 30 days, will be 1 mill, and for 2 days, 3 days, etc., as many sixths of a mill as there are days. Hence, the OPERATION. 7 months Case I. 213. To find the interest of any sum at 6 per cent. 1. What is the interest of $212 for 2 y. 7 mo. 15 da.? Interest of $1, For 2 years = = $.12 Principal, $212 .157 .035 |