The agent's account of sales shows a loss of 1 % on the New Orleaus, and a profit of 39 % on the West India sugar; does the merchant gain or lose on the whole consignment, and what per Ans. Gains c.

cent.?

25. A grocer sold a hogshead of molasses for $31.50, which was a reduction of 30 % from the prime cost; what was the purchase price paid per gallon?

26. A speculator sold stock at a discount of 73 %, and made a profit of 5 %; at what rate of discount had be purchased the stock? Ans. 12 %.

27. A dry-goods merchant sells delaines for 21 cents per yard more than they cost, and realizes a profit of 8 %; what was the cost per yard? Ans. $.311

4

28. If I make a profit of 183 % by selling broadcloth for 8.75 per yard above cost, how much must I advance on this price to realize a profit of 81 %?

29. A speculator gained 30% on & of his investment, and lose 5% on the remainder, and his net profits were $720. What would have been his profits; had he gained 30 % on f and lost 5% on the remainder? Ans. 8405.

30. A man wishing to sell his real estate asked 36 per cent. more than it cost him, but he finally sold it for 16 per cent, less than his asking price. He gained by the transaction $740.18. How much did the estate cost him, what was his asking price, and for how much did he sell it?

Ans. Cost, 85200; asking price, $7072; sold for $5940.48. 81. Fold ĝ of a barrel of beef for what the whole barrel cost; what per cent. did I gain on the part sold?

$2. Bought 4 hogsheads of molasses, each containing 84 gal luns, at $.37% a gallon, and paid $7.50 for freight and cartage. Allwing 5 por cent, for leakage and waste, 4 per cent, of the sales for bad debts, and 1 per cent, of the remainder for collecting, fir how much per gallon must I sell it to make a net gain of 25 cent. on the cost of the whole?

Ans. 9.55-

ed

INSURANCE.

267

496. Insurance is security guaranteed by one party to au ther, against loss, damage, or risk. It is of two kinds; insuran on property, and insurance on life.

407. The Insurer or Underwriter is the party taking

risk.

498. The Insured or Assured is the party protected.

490. The Policy is the written contract between the parties. 500. Premium is the sum paid for insurance. It is always certain per cent. of the sum insured, varying according to th degree or nature of risk assumed, and payable annually or at stat intervals.

Nores.-1. Insurance business is generally conducted by joint stock comp mies, though sometimes by individuals.

2. A. Mutual fasurance company is one in which each person Insured is o tled to a share in the profits of the concern.

3. The act of insuring is sometimes called taking a risk.

FIRE AND MARINE INSURANCE.

501. Insurance on property is of two kinds; Fire Insures and Marine Insurance.

Fire Insurance is security against loss of property by fire. Marine Insurance is security against the loss of vessel or can by the casualties of navigation.

402. The Sum Covered by insurance is the difference tween the sum insured and the premium paid.

Nores--L. As security against fraud, most insurance companies taki ri

not more than two thirds of the full value of the property insured,

2. When insured property suffors damage less than the amount of the po the insurers are required to pay only the estimated loss.

the

503. The calculations in insurance are based upon the the lowing relations: ◄

F. Premiura is percentage (445).

II. The sum insured is the base of premium.

III. The sum covered by insurance is difference.

1. What promium must be paid for insuring any stock of ge

to the amount of $5760 at 11 %?

y .0125, the rate, and obtain $72, the premium.

2. For what sum must a granary be insured at 2 % in order to cover the loss of the wheat, valued at $1617?

OPERATION.

1.00.02= = .98

$1617.98

=

$1650, Ans.

ANALYSIS. According to Prob. V, (453), we divide the sum to be covered, $1617, which is difference, by 1

minus the rate of premium, and obtain $1650, the base of premium, r the sum to be insured.

PROOF. $1650 × .02 = $33, premium; $1650 – $33 = $1617, the um covered.

3. What must be paid for an insurance of $5860 at 11 %? 4. What is the premium of $860 at %? Ans. $4.30. 5. What is the premium for an insurance of $3500 on my house a barn, at 11 %? Ans. $43.75. 6. A fishing craft, insured for $10000 at 24 %, was totally recked; how much of the loss was covered? Ans. $9775. 7. A hotel valued at $10000 has been insured for $6000 at %, $5.50 being charged for the policy and the survey of the emises; if it should be destroyed by fire, what loss would the ner suffer? Ans. $41080.50.

3. A merchant whose stock in trade is worth $12000, gets the ods insured for of their value, at %; if in a conflagration saves only $2000 of the stock, what actual loss will he sustain? 9. If I take a risk of $36000 at 23 %; and re-insure of it 3%, what is my balance of the premium? Ans. $360. is the rate of Ans. 1 %.

I pay $12 for an insurance of $800; what nium?

A trader got a shipment of 500 barrels of flour insured for of its cost, at 3 %, paying $107.25 premium; at what Ans. $8.25.

e per barrel did he purchase the flour? 12. The Astor Insurance Company took a risk of $16000, for emium of $280; what was the rate of insurance?

A whaling merchant gets his vessel insured for $20000 in

the Gallatin Company, at %, and for $30000 in the Howard Company, at %; what rate of premium does he pay on the whole insurance? Ans. %.

14. If it cost $46.75 to insure a store for of its value, at 13 %, what is the store worth? Ans. $6800. 15. For what sum must I get my library insured at 13%, to cover a loss of $7910? Ans. $8000. 16. What will be the premium for insuring at 23 %, to cover $27320 ? Ans. $680. 17. A shipment of pork was insured at 4% %, to cover § of its value. The premium paid was $122.50; what was the pork worth? Ans. $4480.

18. A gentleman obtained an insurance on his house for of its value, at 1 % annually. After paying 5 instalments of premium, the house was destroyed by fire, in consequence of which he suffered a loss of $2940; what was the value of the house? 19. A man's property is insured at 21 % payable annually; in how many years will the premium equal the amount of the policy? Ans. 40 years. 20. A company took a risk at 21 %, and re-insured of it in another company at 23%. The premium received exceeded the premium paid by $72. What was the amount of the risk? 21. The Commercial Insurance Company issued a policy of insurance on an East India merchantman for & of the estimated lue of ship and cargo, at 41 %, and immediately re-insured of the risk in the Manhattan Company, at 3 %. During the outward voyage the ship was wrecked, and the Manhattan Company lost $1350 more than the Commercial Company; what did the owners lose? Ans. $40590.

LIFE INSURANCE.

504. Life Insurance is a contract in which a company agrees to pay a certain sum of money on the death of an individual, in consideration of ao immediate payment, or of an annual premium paint for a term of years, or during the life of the insured. The

policy may be made payable to the heirs of the insured, or assured, person, or to any one whom he may designate.

505. The policies issued by life insurance companies are of various kinds, the principal of which are as follows:

1st. Term policies, payable on the death of the insured, if the death occurs during a specified term of years; those require the payment of an annual premium till the policy matures or expires.

d. Life policies, payable on the death of the insured, the annual premis to continue during life.

3d. Life policies, payable on the death of the insured, the annual premium to cease at a given age.

4th. Endowment assurance policies, payable to the assured person on his attaining a given age, or to his heirs if his death occurs before that age, annual premium being required till the policy matures.

The premium on the first and second classes of policies may be diacharged by a single payment, instead of annual instalments.

300. The Expectation of Life is the average number of years of life that remains to a person of a given age, as determined by tables of mortality.

007. The rates of life insurance, as fixed by different companies, are based upon the expectation of life and the probable rates of interest which money will bear in future time.

509. The rates of annual premium for the assurance of $100 on a single life, according to the two kinds of life policies (2) and 8), as issued by the Matual Life Insurance Company of News York, are given in the Life Table on page 291.

009. The rates of annual premium of an assurance of $100 in the same company, payable to the party assured on his attaining the age of 40, 45, 50, 55, 60, or 65, or to his representatives, in case of death before attaining these ages respectively, are shownin the Endowment Assurance Table on page 202.

Nores, - 1. The tables of the Mutual Life Insurance Company of New York liny z been selected, as furnishing good examples of a variety of policies, the computations by any other tables would not differ in any material respect frow those intrudeerd under these tables.

2. Since a payment is made at the issue of the policy, and another at the exniration of the first year, the number of payments on a policy will always be 1 e than the number of years.