12. Net proceeds, $3640; rate of commission, 3%. 13. Net proceeds, $1850; rate of commission, 3%. Find the amount to be invested in the following: Observe, that when an agent is to deduct his commission from the amount of money in his hand the formula is (506) Sum invested = Amount in hand ÷ (1 + Rate %). 14. Amount in hand, $3401.01; rate of commission, 31%. 15. Remittance was $393.17; rate of commission, 23%. 16. Amount in hand, $606.43; rate of commission, 14%. 17. A lawyer collects bills amounting to $492; what is his commission at 5%? Ans. $24.60. 18. An agent sold 824 barrels of beef, averaging 2021 lb. each at 9 cents a pound; what was his commission at 24%? 19. A merchant has sent me $582.40 to invest in apples, at $5 a barrel; how many can I buy, commission being 4%? 20. I have remitted $1120 to my correspondent in Lynn to invest in shares, after deducting his commission of 11%; what is his commission ? Ans. $13.34. 21. An auctioneer sold goods at auction for $13825, and others at a private sale for $12050; what was his commission at 1%? Ans. $129.3750. 22. A man sends $6897.12 to his agent in New Orleans, requesting him to invest in cotton after deducting his commission of 2%; what was the amount invested? INSURANCE. 523. Insurance is a contract which binds one party to indemnify another against possible loss or damage. It is of two kinds: insurance on property and insurance on life. 524. The Policy is the written contract made between the parties. 525. The Premium is the percentage paid for insurance. 526. The quantities considered in insurance correspond with those in percentage; thus, 1. The amount insured is the Buse. 527. Let the pupil write out the formulæ as in Profit and Loss. 1. What is the premium on a policy for $3500, at 3% ? 2. My house is insured for $7250; what is the yearly premium, at 24%? 3. Justus Weston's house is insured for $3250 at 3 per cent, his furniture for $945 at 1 per cent, and his barn for $1220 at 14 per cent; what is the amount of premium on the whole property? 4. A factory is insured for $27430, and the premium is $685.75; what is the rate of insurance? 5. The Pacific Mills of Lawrence, worth $28000, being destroyed by fire, were insured for their value; at 2 per cent, what is the actual loss of the insurance company? 6. The premium on a house, at per cent, is $40; what is the sum insured? 7. It costs me $72 annually to keep my house insured for $18000; what is the rate? 8. What must be paid to insure from Boston to New Orleans a ship valued at $37600, at of 1% ? 9. A cargo of 800 bundles of hay, worth $4.80 a bundle, is insured at 11% on of its full value. If the cargo be destroyed, how much will the owner lose? 10. My dwelling-house is insured for $4800 at %; my furniture, library, etc., for $2500 at 3%; my horses, cattle, etc., for $3900 at %; and a carriage manufactory, including machinery, for $4700 at 13%. What is my annual premium? STOCKS. 528. A Corporation is a body of individuals or company authorized by law to transact business as one person. 529. The Capital Stock is the money contributed and employed by the company or corporation to carry on its business. The term stock is also used to denote Government and State bonds, etc. 530. A Share is one of the equal parts into which the capital stock is divided. 531. A Certificate of Stock, or Scrip, is a paper issued by a corporation, securing to the holder a given number of shares of the capital stock. 532. The Par Value of stock is the sum for which the scrip or certificate is issued. 533. The Market Value of stock is the price per share for which it can be sold. 534. The Premium, Discount, and Brokerage are always computed on the par value of the stock. 535. The Net Earnings are the moneys left after deducting all expenses, losses, and interest upon borrowed capital. 536. A Bond is a written instrument, securing the payment of a sum of money at or before a specified time. 537. A Coupon is a certificate of interest attached to a bond, which is cut off and delivered to the payor when the interest is discharged. 538. U. S. Bonds may be regarded as of two classes: those payable at a fixed date, and those payable at any time between two fixed dates, at the option of the government. 539. In commercial language, the two classes of U. S. bonds are distinguished from each other thus: (1.) U. S. 6's, bonds payable at a fixed time. (2.) U. S. 6's 5-20, bonds payable, at the option of the Government, at any time from 5 to 20 years from their date. 540. Let the pupil write out the formula for each class of examples, as shown in Profit and Loss: 1. Find the cost of 120 shares N. Y. Central stock, the market value of which is 108, brokerage %. SOLUTION. -Since 1 share cost 108% +1%, or 1081 % of $100 = 1081, the cost of 120 shares will be $108 × 120 = $13020. 2. What is the market value of 86 shares in the Salem and Lowell Railroad, at 31% premium, brokerage %? 3. Find the cost of 95 shares bank stock, at 6% premium, brokerage 3%. 4. How many shares of Erie Railroad stock at 8% discount can be bought for $7030, brokerage 1%? SOLUTION. Since 1 share cost 100%-8% +1%, or 921% of $100 $92.50, as many shares can be bought as $92.50 are contained times in $7020, which is 76. How many shares of stock can be bought 5. For $10092, at a premium of 5%, brokerage 1% 6. For $13428, at a discount of 7%, brokerage %? 7. For $16830, at a premium of 93%, brokerage 1%? 8. What sum must be invested in stocks at 112, paying 9%, to obtain a yearly income of $1260? SOLUTION. Since $9 is the annual income on 1 share, the number of shares must be equal $1260÷$9, or 140 shares, and 140 shares at $112 a share amount to $15680, the required investment. Find the investment for the following: 9. Income $2660, stock purchased at 105. yielding 7%. 10. Income $1800, stock purchased at 109, yielding 12%. 11. Income $3900, stock purchased at 92, yielding 6%. 12. What must be paid for stocks yielding 7% dividends, that 10% may be realized annually from the investment? SOLUTION.-Since $7, the annual income on 1 share, must be 10% of the cost of 1 share, † of $7, or 70 ct., is 1%. Hence 100%, or 70 ct. × 100 = $70, is the amount that must be paid for the stock. What must be paid for stocks yielding 13. 5% dividends to obtain an annual income of 8% ? 14. 7% dividends to obtain an annual income of 12% ? 15. 9% dividends to obtain an annual income of 7%? 16. How much currency can be bought for $350 in gold, when the latter is at 12% premium? SOLUTION.-Since $1 in gold is worth $1.12 in currency, $350 in gold are equal $1.12 × 350 = $392. How much currency can be bought 17. For $780 in gold, when it is at a premium of 9%? 18. For $396 in gold, when it is at a premium of 131%? 19. For $520 in gold, when it is at a premium of 124%? 20. How much is $507.50 in currency worth in gold, the latter being at a premium of 121%? SOLUTION.-Since $1 of gold is equal to $1.121 in currency, $507.50 in currency must be worth as many dollars in gold as $1.12 is contained times in $507.50, which is $486. How much gold can be bought 21. For $1053.17 currency, when gold is at a premium of 91%? 22. For $317.47 currency, when gold is at a premium of 11%%? 23. For $418.14 currency, when gold is at a premium of 13% ? 24. Bought 80 shares in Boston and Maine Railroad, at a discount of 21%, and sold the same at an advance of 12%; what did I gain? Ans. $1160. |