76 INSURANCE, COMMISSION, AND BROKERAGE, a What is Discount? QUESTIONS. b What is the rule for finding the present worth of a given sum? c Having found the present worth, how is the discount found? INSURANCE, COMMISSION, AND BROKERAGE, a Are allowances to Insurers, Factors, and Brokers, at a stipulated rate per cent. as a premium for their services. RULE. The same rules used in Simple Interest, apply in each of these cases. EXAMPLES. 1. What is the premium of insurance on a house value₫ at $2500, at 2 per cent? 2500, 5000 1250 $62,50 Ans. 2. What is the premium of insurance on a boat and cargo valued at $12,500 at 24 per cent? Ans. $281,25. 3. What is the premium of insuring $5425 at per cent? Ans. $27,12,5. 4. What is the premium of insurance on property to the amount of $3250 at 3 per cent? Ans. $97,50. 5. What is the commission on $3425, at 4 per cent? Ans. $137. 6. A Commission Merchant receives $1260 to fill an order, from which he is instructed to deduct his own commission of 5 per cent. how much will remain to satisfy the order? 100 As 5 per cent. 105 100: 1260: 1200 dollars Ans. 7. A Commission Merchant has received $4120, with instructions to vest it in superfine broad cloth at $8 per yard: deducting his commission of 3 per cent. how many yards can he purchase? Ans. 500 yds. 3. What is the brokerage on $1000 at 23 per cent? Ans. $25. 9. What is the brokerage on $7425 at 13 per cent? Ans. $137,5. 10. What is the brokerage on $1500, at per cent? Ans. $5. QUESTIONS. a What is Insurance, Commission, and Brokerage? b What is the rule for calculating each of them? PRACTICE. a PRACTICE is a contraction of the Rule of Three Direct, when the first term is a unit or 1; and is a concise method of working most questions which occur in trade, where money is reckoned in pounds, shillings and pence; but reckoning in federal money, has rendered the rule of comparatively little use; but few cases will, therefore, be given. The following tables will greatly assist the learner in working under this rule, although they do not contain all the parts which may be necessary in the operation, it often being convenient to work by parts of parts. CASE 1. When the price of the given quantity is pence and farthings, or cents, per yard, pound, &c. RULE. b Set down the given quantity and divide by the aliquot parts, and the sum of the quotients will be the answer in shillings, or dollars and cents. e When there are parts of a number in the quantity, for 1, write 3d. or 25 cts. for, write 6d. or 50 cts. for 1, write 9d. or 75 cts. EXAMPLES. 1. What will 325 yards come to, at 9d. per yard? 6d. 3 325 Price. In dividing 325, I have 1 over, which is reckoned 12 pence, and divided by 2 the same as the other figures. This must always be done when shillings, &c. are given. 2. What will 325 yards come to, at 123 cents per yard? 12 cts is $}} 325 $40,62,5. Ans. 3. What will 174 pounds of sugar come to, at 6d. per pound? 9. 742 at 163 25 10. 425 CASE 2. Ans. 123,75 106,25 When the price is shillings, pence and farthings, or dollars and cents. RULE. d Multiply the given quantity by the shillings or dollars, and for parts of either, proceed as in case 1. EXAMPLES. 1. What will 45 pounds of tea come to at 6s. 9d. pound? 6d.s. per 3d.=1 of 6d. 22 6 at 6d. vide it into the 2. What will 75 yards of cloth come to, at $2,163 per yard? 3. 425 yds. or cwt. at 8s. 6d. Ans. £180 12s. 6d. CASE 3. When the price is in pounds, shillings, and pence, or dollars and cents. e Multiply the given quantity by the pounds or dollars, and take aliquot parts for shillings and pence, or cents. EXAMPLES. 1. What will 65 yards of cloth cost, at £3 8s. 3d. per yard? 5s. is 65 3 195 16 5 2. What will 65 yards of cloth cost, at $4,333 per yard? 331 65 4 260 21,66,6 $281,66,6 CASE 4. When both the price and quantity arc of different denom inations. RULE. f Multiply the integers in the given price and quantity together, and for parts of either, take aliquot parts, and proceed as in the former cases, |