12. Mr. Rutan sold two watches for $31.50 each. On one of them he lost 121 %, and on the other he gained 121 %. Did he lose or gain on the transaction? 13. In the 4-mile cross country run at Columbia University each class was represented by four runners. The class whose runners had the lowest average score won. How much less was their time than that of each of the other classes? What per cent less? 14. Mr Grant sold 2 acres of land for $720 each. On one of them he gained 20 % and on the other he lost 20 %. What did the land cost him? 15. Find the difference between 21% of $460.50 and 31% of $380.40. 16. Mr. Kendall pays $25 a year for $1,000 life insurance. What rate per cent does he pay? 17. A house valued at $7,200 is assessed for $5,400. What per cent of its value is the assessment? If the tax rate is $2.32 on $100, how much is the tax? 18. A farm valued at $16,000 is assessed for 60 % of its value. What is the tax on the farm at the rate of $2.14 for $1,000? 19. Bennie bought 60 newspapers at cents and sold them for 3 cents apiece. make? What What per cent? the rate of 3 for 5 How much did he 20. If Lena had taken 20 % more stitches she would have taken 720 stitches. How many stitches did she take? 21. On 4 days of the week Thomas has spelling lessons of 20 words each. On Friday all the words of the week are reviewed. If he misses an average of 5 words on Fridays, what is the average per cent of words spelled correctly? Of words missed? SUMMARY OF CHAPTER IV PERCENTAGE. Definitions and applications. To find Percentage, Amount or Difference, Base, Rate. TRADE DISCOUNT. COMMISSION. TAXES. Direct. Indirect. INTEREST. Definitions. Most-used Methods. Direct or Aliquot. Sixty Day. Six Per Cent. Cancellation. CHAPTER V BANKING AND BUSINESS PRACTICE METHODS OF DEPOSITING MONEY 188. Banks are institutions that deal in money and take care of other people's money. Most people do not keep much money on their persons or in their houses or places of business. They put it (or deposit it) in a bank. Money so intrusted to a bank is called a deposit. 67 10-00 250M Business men generally deposit every day the greater part of their cash funds. Commonly depositors use a slip like this, which the bank keeps to show just how much has been deposited. The bank clerk also enters the amount in a bank book, belonging to the depositor. 189. When depositors make payments to others, instead of paying out money they use checks. A check is an order on a bank to pay to some one an amount of money specified. The bank honors the check; that is, it pays the specified amount to the person named, Deposited to the account of IN The Eighth National Bank New York, Apr. It 19/ PLEASE ENTER EACH CHECK SEPARATELY Bills Coin Check DOLLARS CTS. 125 317 after making sure that the one whose name is signed really signed it, and that he has money enough on deposit to pay it. 120 Read this check and tell on what bank the order was drawn. Who made the check? To whose order was it made? For how much was it made? No. 356 New York. May 7th 1910 EIGHTH NATIONAL BANK Pup to the orderof Bonner & Preston Sixty five $65 24 100 Dollars Richard Smith If the check is made payable to a particular person, he must indorse it, that is, write his name on the back, before he can get the money. It is not necessary for the man who receives a check to go to the bank on which it is drawn to get his money. He 190. Richard Smith owes Bonner & Preston $65.24. has a deposit in the Eighth National Bank of New York. So he sends them a check for the amount of the bill. They indorse the check and deposit it, as if it were cash, in the Second National Bank, where they keep their money. The Second National Bank collects the amount, $65.24, from the Eighth National Bank, for them, and places it to their credit in that bank. These banks thus save both of these parties a great amount of time and trouble. By such means banks provide a convenient and prompt method of collecting and paying money. To pay themselves for this, they loan on interest the money deposited with them. CLEARING HOUSES 191. For the convenience of banks in collecting from one another money due on the checks of their depositors, there are in most cities "clearing houses." A Clearing House is a place where representatives from the different banks meet to exchange checks and to adjust balances. At a certain time every day the different banks send to the clearing house all the checks on other banks which have been deposited during the day. These checks are compared, the amounts due between the various banks canceled so far as they are equal, and any balance due paid in money. In the above example, the Second National Bank sends to the clearing house Mr. Smith's check drawn on the Eighth National Bank. The Eighth National Bank has a check drawn by Mr. Jones on the Second National Bank for $78.40. So the messenger of the Second National Bank pays to the messenger of the Eighth National Bank, in money, the difference between the two checks, $78.40 - $65.24 or $13.16. This is done through clearing house officials. Each of the checks mentioned will be stamped on the back with the clearing house stamp which gives the date of its clearance. 192. All the checks due from each bank to all the others are taken by the officers of the clearing house, classified, and added. Then the balances are paid by those whose checks payable are less in amount than their checks receivable. |