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. 3. The Premium is the Percentage. Hence we have the following formula: 1. Face X Rate Premium. 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. 3. The insurance op a barn at 1% costs $18. What is the face of the policy ? $% 487 .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 ? 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 ? 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. = |