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40. What sum must be invested in 6% stocks, worth 95, to yield an income of $1500 ?

41. Which would yield the larger income, $11,400 invested in 7% stock, at 95, or the same amount invested in 5% stock, quoted at 57 ?

42. At what rate must a 5% stock be sold to produce 8% on the investment?

43. If I buy 6% stock at 15% discount, what is the rate of interest on the investment?

44. If I give a house and lot worth $2000 for 175 shares ($10) N. Y. Gas Co.'s stock, what is the rate of premium ?

45. How many shares of bank stock, selling at 5% discount, can be bought for 250 shares of insurance stock, selling at 14% premium?

46. How many shares of stock, par 25, can be bought for $2730, when quoted at 105 ?

47. A capitalist bought stock at 65, and after receiving a dividend of 51 %, sold it at 82, and made $1125. How much stock had he, and what per cent. did he realize?

48. If stock is bought at 31% discount, and sold at a premium of 21%, and the gain is $258.75, what is the par value of the stock?

49. I bought bank stock at 961, and sold it at 1123, thereby gaining $3556. How many shares were there?

50. What must I pay for 6% bonds to realize 52% on my investment, brokerage %?

51. In order to realize 6% annually on an investment, what must I give for bonds that pay a semi-annual interest of 3%, if I immediately reinvest the semi-annual interest at 6% ?

52. If 5% bonds are bought at 90, what is the rate of income on the investment ?

53. A lady desiring to invest money, considered 5s at 108, 6s at 124, and 7s at 129. Which was preferable ?

54. A broker charges $25 at 1% for buying Pennsylvania R. R. ($50). How many shares did he buy?

INSURANCE. 1. Insurance is security guaranteed for loss by fire or other specified causes. 2. Property Insurance includes: 1. Fire Insurance.

Premium computed as 2. Marine Insurance.

percentage. 3. Live Stock Insurance. 3. Personal Insurance includes : 1. Life Insurance.

Premium computed at a 2. Accident Insurance.

certain sum per $1000. 3. Health Insurance. 4. The written agreement is called the Policy; the sum ramed in the policy is called the Face; the sum paid annually, semi-annually, or quarterly is called the Premium.

1. The Face (the amount insured) is the Base.
2. The Rate of Premium is the Rate.

3. The Premium is the Percentage. Hence we have the following formula:

1. Face X Rate Premium.
2. Premium ; Face Rate.
3. Premium ; Rate = Face.

MODEL SOLUTIONS. 1. How much will it cost to insure a house worth $3000 at 14% ?

11% = .011 =1= 78=26. Formula : Premium Face X Rate $3000 X = $37.50. 2. A merchant insures his store, valued at $4850, for of

A its value at }%. What is the premium? of 4850

$3880.1% so = .00875. Formula : Face X Rate $3880 x .00875 $33.95.

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3. The insurance op a barn at 1% costs $18. What is the face of the policy ? $%

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.0075. Formula : Face Premium : Rate 18 : .0075 $2400. Or, % = $18. 1% = $6. 1% $24. 100% $2400. If I pay $30 insurance on a $3000 house, what is the rate ? Formula: Rate

3887 = id=.01 = 1%. Or, $3000 100%. $1 = 30% = 30%. $30 38% = 1%.

Premium

Face

30 3000

PROBLEMS.

1. If a man pays $30 insurance at 11%, what amount of insurance does he get?

2. A vessel and cargo valued at $2840 are insured at 31%. What is the premium?

3. A man has a house worth $5600. He insures it at 11% on 4 of its value. Find the cost of insurance.

4. What is the total premium on a house worth $4500 insured for 5 years at 12%?

5. How much is the premium for insuring a stock of goods for $15,000 at 14%?

6. Mr. Jacobs paid $652.50 for insuring property valued at $43,500. What was the rate?

7. A vessel and cargo were insured for of their value at 17%. The premium was $2475. At what price were the vessel and cargo valued ?

8. $3.75 was the premium on the value of some furniture at 1% a year. What was its insurance valuation ?

9. One company offers to take a $12,000 risk at 11% for five ,

years, and another at 1% a year. Which is the cheaper ? 10. An insurance company loses $3528 by the wreck of a carload of flour which it had insured for $3600. What was the rate of insurance ? 11. A merchant imports a cargo from Liverpool, England, worth £1500 and insures it at 1%. Find the premium in

U.S. money.

12. For what sum must a policy be made out to cover the insurance on a property of $2100 at 1% ?

13. If it cost $93.50 to insure a store for one-half of its value, at 13%, what is the store worth?

14. A person insured his house for of its value at 40 cents per $100, paying a premium of $73.50. What was the value of the house?

15. At 4%, how much insurance can be effected upon a store for $108 ?

16. For what sum should a cargo worth $74,496 be insured at 3% so that, in case of loss, the owner may recover both the value of the cargo and the premium paid ?

17. A man has a house worth $5600. He insures it at 11% on of its value. Find the cost of insurance.

18. If a tax of $12 is paid on a house and lot valued at $1200, what is the rate per cent. of tax ?

19. A vessel worth $28,000 was insured at 14%, and the cargo, worth $15,000, at 21%. Both were totally lost. What was the loss to the insurer ?

20. A man 25 years of age has his life insured for $6000 at $19.85 on $1000 annually. What annual premium does he pay?

21. If a man 35 years of age takes out a life policy for $8500 at $22.70 on $1000 annually, and dies at the age of 60, how much does the amount insured exceed the sum of the premiums?

22. If Mr. B. takes out a life policy for $8000, what is his yearly premium at the rate of $26.50 on $1000 ?

23. At the age of 28 years I took out an endowment policy for $10,000. What is my yearly premium at the rate of $45.15 on $1000 ?

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24. I insure my life for $8000, paying $19.80 per $1000 per year. What do I pay the company if I live 20 years after insurance ?

25. If a person who is insured for $5000, at an annual premium of $28.90 per $1000, dies after 9 payments, how much more will his heirs get than has been paid in premiums?

26. A lady insures her life for $8000, at an annual payment of $29.30 per $1000. If she lives 15 years, what amount will she have paid in premiums?

DIRECT TAXES.

person.

1. A Tax is a sum of money levied on persons in behalf of the public welfare. 2. A Poll Tax is levied on the

A Property Tax is levied on property.

3. Assessors determine the value of property.

4. A Tax-Collector collects the taxes; his salary is commonly a percentage of the sum collected.

5. Property Tax is reckoned at some rate per cent. on the value of the property assessed.

MODEL SOLUTION. A tax of $15,600 is to be raised in a town in which the taxable property is $3,200,000; there are 1000 persons who pay a poll-tax of $2.00 each. What is the rate of taxation ? What is A.'s tax, whose property is valued at $6000, and who pays a single poll-tax ?

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1. The poll-tax = $2.00 X 1000 $2000. 2. Total tax, $15,600 – $2000 : $13,600, tax to be raised on property. 3. $13,600 - 3,200,000 = .0041. Rate 41 mills on a dollar. 4. A.'s tax - $6000 x .0041 $25.50, on property. 5. $25.50 + $2.00 = $27.50, A.'s entire tax.

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