36. What must be the price of a 7% stock, in order that a buyer may receive 6% interest on his money? 37. What may be paid for an 8% stock, in order that a buyer may receive 6% interest on his money? for a 9% stock? for a 10% stock? 38. A person invested $2855 in a bank, when the stock was at 142. What is the rate per cent of the dividend when he receives $150? 39. How much will be received for some 3% stock, from which an income of $250 has been derived, if sold at 871 ? 40. If a 5% stock pays $340 income, and is sold out for $7990, at what price is it sold? 41. On what per cent stock must an investment have been made from which $185.50 was derived yearly, and which, when sold out at 97, brought $5141? 42. A person receives 4% interest on his money by investing it in some 6% stock. At what price did he buy it? Ex. What alteration will be made in an income by selling $10,000 4% stocks at 891, including brokerage, and buying 5% stock at 105, including brokerage? It is necessary to determine three things: (1) The income derived from the 4% stock. (2) The amount received for the 4% stock when sold at 891. (3) The income which this amount will produce when invested in the 5% stock, at 105. (1) .04 of $ 10,000 = $400, income from 4% stock. (2) .89 of $10,000 = $8925, amount from the 4% stock. (3) $1.05 is paid for $1 worth of 5% stock. Hence, $8925 is paid for $8925 ÷ 1.05 $8500 stock. = 43. If $4800 3% stocks be sold at 88, and the proceeds be invested in 5% stocks at 105%, what additional income will be obtained? 44. If $7800 31% stocks be sold at 60, and the proceeds be invested in 5% stocks at 90, find the alteration in income. 45. If $10,000 3% stocks be sold at 88, and the proceeds be invested in 31% stocks at par, find the alteration in income. 46. If $10,000 8% stocks be sold at 150, and the proceeds be invested in 6% stocks at par, find the alteration in income. 47. If $8000 10% stocks be sold at 170, and the proceeds be invested in 5% stocks at 68, find the alteration in income. 48. If $7000 8% stocks be sold at 150, and the proceeds be invested in 6% stocks at 105, find the alteration in income. 49. If $1000 8% stocks be sold at 170, and the proceeds be invested in 5% stocks at par, find the alteration in income. 50. If $8000 5% stocks be sold at 90, and the proceeds be invested in 3% stocks at 60, find the alteration in income. 51. If $10,000 31% stocks be sold at 65, and the proceeds be invested in 8% stocks at 130, find the alteration in income. 52. If $8000 41% stocks be sold at 70, and the proceeds be invested in 10% stocks at 160, find the alteration in income. 53. If $6000 6% stocks be sold at 90, and the proceeds be invested in 10% stocks at 135, find the alteration in income. 54. Find the rate of interest obtained by investing in a stock, at 124, paying 64 per cent per annum. 55. What is the price of stock if $7000 stock can be bought for $5880? 56. Find the price of mining shares issued at $15 a share and sold at 21% discount? 57. How much 34% stock must be sold at 81%, in order to buy $5000 4% stock at 944; brokerage, in each transaction. 58. How much stock must be sold at 963 to raise a sufficient sum for discounting a note for $1000, due 49 days hence, and discounted at 5%? 59. A broker bought $5000 stock at 881. must he sell it to gain $100? At what price 60. If a broker buy stock at 85, at what price must he sell it to make 12% profit; brokerage, on each tran saction. 61. Which is the more profitable stock for investment, a 4% at 85 or a 3% at 63? a 31% stock at 671 or a 4% stock at 811 ? 62. Find the price of a 4% stock to equal a 3% stock at 88? 63. Find the price of a 5% stock to equal a 3% stock at 894. 64. Find the price of a 3% stock to equal a 6% stock at par. 65. Find the profit or loss in buying $80,000 stock, at 91§, and selling at 90; brokerage, on each transaction. 66. Which is the better investment, a 5% stock, at 137, or a 3% stock at 91? What rate of interest would be received from each investment? 67. A person invests $7370 in the purchase of a stock at 92. What loss will he sustain if he sell at 90, brokerage being in each transaction? 68. How much stock must be sold at 90§ so that when the proceeds are invested in a mortgage, at 6%, $543.75 a year may be received? 69. A person invests of his money at 6%, at 4%, and the rest at 31%. What per cent will he receive on the whole amount? CHAPTER XIX. EXCHANGE. 372. A draft or bill of exchange is a written order directing one person to pay a specified sum of money to another. Thus, if B. Smith of Portland owes S. Brown of Boston $500; when the debt becomes due, Smith procures a draft from a bank in Portland on a bank in Boston, and sends it by mail to Brown of Boston. The bank in Portland makes the draft payable to the order of B. Smith (unless otherwise directed), and Smith writes on the back of the draft, Pay to the order of S. Brown," and signs it. On receipt of the draft, Brown takes it to the bank named in the draft, writes his name across the back of the draft, and receives his money. 373. A time draft is a draft payable at a specified time after sight (or date). When the person on whom a time draft is drawn accepts a draft, he writes the word "Accepted," with the date, across the face, and signs his name. The draft is then called an acceptance, and the acceptor is responsible for its payment. An acceptance is of the nature of a promissory note, and when discounted the discount is calculated for the specified time and three days of grace. 374. The system of paying debts due to persons living at a distance, by transmitting drafts instead of money, is called exchange. The rate per cent which the cost of a draft is more or less than its face is called the rate of exchange. The comparative value of the coins of different countries is called the par of exchange. The par of exchange as modified by the rate of exchange is called the course of exchange. (1) Find the cost of the following draft, exchange being of 1% premium, and interest 6%. $800. CINCINNATI, O., Feb. 8, 1881. Thirty days after sight pay to the order of S. Clark eight hundred dollars, and place to the account of (2) Find the cost of a draft for $400, payable 60 days after sight, exchange being of 1% discount, and interest (3) Find the face of a draft, payable 30 days after sight, that can be bought for $1000, exchange being of 1% premium, and interest 6%. $.0055 $1-$.0055 = Discount on $1 for 33 days, at 6%. $.0025 premium on $1. Therefore. $1000.997 $1003.01 face of draft. = EXERCISE LXXIV. 1. Find the cost of a draft on New York for $1100, at of 1% premium. 2. Find the cost of a draft on New Orleans for $1350, at of 1% discount. at |