1. Mr. Walker owns a house valued at $6000. He insures it for of its value in the Home Fire Insurance Co. This means that the company promise to pay him $4500 if the house is burned, within 5 years.

2. For this promise Mr. Walker pays the company 11% of the amount for which the property is insured. Find 11% of $4500.

3. Security against loss or damage of any kind is called insurance.

4. There are several kinds of insurance. The more common forms are fire insurance, marine insurance, accident insurance and life insurance. The first insures against any loss by fire, the second against any loss at sea, the third against any loss from an accident, and the fourth against loss of life.

5. The written agreement between the company and the person insured is called a policy.

6. The sum paid for the insurance is the premium. The premium is a certain per cent of the amount named in the policy.

7. The insurer is often called the underwriter.

8. Property is usually insured by the underwiters for less than its full value.

ORAL EXERCISES

9. A house valued at $8000 was insured for of its value at 11%. What was the premium?

Find the premium in the following:

1. A ship worth $52,000 was insured for of its value at 21%. The cargo worth $8640 was insured for of its value at 3%. Find the whole premium.

2. A house worth $12,000 is insured for 3 of its value. Find the premium, if the rate is 13%.

3. Mr. J. paid $250 for insurance on his stock of goods. If the face of the policy was $10,000, what was the rate of insurance?

4. When the premium is $350 and the rate of insurance is 5%, find the the face of the policy. If the property is insured for of its value, find the whole value.

5. How large an insurance can a man place on his house by paying a premium of $122.50, if the rate of insurance is 12%?

6. A man insures his life for $2500, at the rate of $22.50 for every $1000. What is his annual premium?

7. A man insured his life for $3000, paying $24.25 semiannually for every $1000. Find the total amount paid in premiums in 12 years. At his death his wife received $3000. How much more did she receive than had been paid in premiums?

8. A factory valued at $50,000 is insured for % of its value. If the premium is $500, what is the rate of insurance?

9. If a merchant pays $150 for insuring $8000 worth of goods, what is the rate of insurance?

10. $206.25 was the premium paid for insuring a factory at 13%. Find the face of the policy.

11. A man insured his barn for å of its value at 11%, and paid a premium of $15. Find the value of the barn.

12. A man paid $87 for insuring his house worth $7250. What was the rate of insurance?

13. A house worth $3500 is insured for of its value at 13%. Find the premium.

1. Mr. Snow sold $1200 worth of goods for Mr. Ryan, and asked 2% for making the sale. How much did Mr. Snow receive? After paying Mr. Snow how much did Mr. Ryan receive for his goods?

2. A person who transacts business for another is called an agent. Agents are known by different names according to the work they do, as, a broker, a collector, a commission merchant.

3. The money paid to the agent for his work is called commission or brokerage.

4. Agents receive money for their employers by collecting debts or selling property and their commission is some per cent of the money received.

5. Agents also expend money for their employers and then their commission is some per cent of the money paid

out.

6. The money left after the commission and all other expenses have been paid is called the net proceeds.

7. The entire cost of a purchase is the price paid plus the commission and all other expenses.

20. An agent sold $4000 worth of goods at 13% commission. Find the commission.

21. A collector's commission at 3% for collecting a debt was $60. How much did he collect?

22. An agent charged $100 for selling a farm for $2000. What was the rate of his commission?

1. An agent bought 70 bbl. of flour at $5.25 a barrel. His commission was 3%. Find his commission. Find the total cost to the merchant.

2. A commission merchant sold a lot of goods for $1480, charging 2 commission. Find the commission. What sum should he remit (send back) to his employer?

3. A broker bought some goods for a merchant for which he paid $2146. His commission for buying was 1%. What did the goods cost the merchant?

2

4. A collector charged 3% for collecting bills. In one month he received $345. How much did he collect?

5. An agent sold 23 wagons at $85 each on 6% commission. Find the net proceeds.

6. Mr. A. received $7990 as the net proceeds for his farm sold by an agent on 6% commission. Find the selling price of the farm.

7. A collector charged a commission of 31%. If he collected 95% of a debt of $2148, what sum should he send his employer?

8. What will be the net proceeds of a sale of 525 bbl. of beef at $18.25 a barrel, allowing 3% commission and 5¢ a barrel for storing?

9. An agent's commission at 41% for selling horses was $270. If he sold 40 horses, find the selling price of each horse.

10. An agent sent his employer $7742.10 as the net proceeds of a sale and kept $117.90 as his commission. What was the rate of his commission?

11. Keeping 5% for his services, an agent remitted $237.50 to his employer. For how much did he sell the goods?

12. A real estate dealer sold 75 lots of land at $275 a lọt. If he charged 2% commission for selling and $5 a lot for recording the deed, what will be the net proceeds of the sale?

In their catalogue the publishers mark the price of the Standard Dictionary as $25.00, but allow a reduction of 10% from this price for cash. How much is the reduction? What is the price of the dictionary after the reduction?

1. A reduction from the marked or list price of an article is called commercial discount or trade discount.

2. Manufacturers and dealers issue price lists of their goods. Such a list is called the list price. The price remaining after all discounts have been taken away is the net price or net amount.

3. Frequently in trade several discounts are made which vary as the condition of the market varies.

4. What is due on a bill of $500, subject to a discount of 20% and 10%?

80%
72% of $500

NOTE: A study of B

= 80%.

=

=

8%. 72%. $360.

=

will show you that the first discount is taken from the list price, the second discount is taken from the remainder, and so on.

5. Find the net amount of a bill of $1440 with 25%, 10%, and 5% off.

Find the net amount of a bill of:

6. $1920 with 25% and 71% off. 7. $1275 with 20% and 15% off.

8. $1088 with 20%, 10%, and 5% off.

9. Find the net price of 480 lb. of tea at 621 a pound, with 371% and 15% off.

10. Find the net amount of a bill of $1285, if the discounts are and 5%.

11. On a bill of $1826, discounts of 40% and 10%, or 30% and 20% were offered. Which discount should you accept? How much would you save?