319. Before computing the duties on certain classes of merchandise, allowances are made for tare, or the weight of the box, bag, etc., for leakage, breakage, etc.

WRITTEN EXERCISES.

320. 1. What is the duty on 420 yards of broadcloth, invoiced at $1.75 per yard, at 25% ad valorem ?

2. What is the duty, at 21¢ per pound, on 2800 lb. of rice, allowing 5% for tare?

3. A merchant imported goods invoiced at £530 5s. What was the duty at 45% ad valorem ?

4. What was the cost per dozen of 6 gross of penknives invoiced at $638.24 if the duty was 40% ad valorem?

5. A merchant imported 1560 yards of Irish linen, invoiced at 38 per yard. What was the duty at 35% ad valorem ?

6. What is the duty, at 25% ad valorem, on 280 chests of tea, each containing 60 pounds, invoiced at 45¢ a pound?

7. What is the duty, at 21 a pound, on 36 boxes of raisins, each containing 24 lb., tare 5 lb. a box?

8. What is the duty, at 33% ad valorem, on 45 tons of steel, of 2240 lb. each, invoiced at 51 per pound?

9. What is the duty, at 25% ad valorem, on 80 dozen watch crystals, invoiced at $1.50 a dozen, an allowance of 5% being made for breakage?

10. What is the duty on 18 pieces of Brussels carpeting, of 60 yd. each, invoiced at 45¢ per yd., the specific duty being 384 per yd., and the ad valorem duty 35% ?

11. Find the duty paid on the following importation: 320 lb. of knit-goods, valued at $1225, at 35¢ per lb. specific duty and 40% ad valorem; 120 yd. of silk invoiced. at $1.25 per yard, at 50% ad valorem; and 500 yd. of lace, invoiced at 874 per yard, at 40% ad valorem.

INSURANCE.

321. 1. How much will it cost to secure myself against loss by fire, or to insure my property for $6000, if an annual sum or premium of 1% is charged by those who assume the risk?

2. What will be the cost of insuring a building worth $10,000, at %, for of its value?

3. A merchant insured a stock of goods worth $12,000 for of its value, at 1%. What was his annual premium? 4. I paid an annual premium of $75 for insuring my property at 3%. For how much was it insured?

322. Indemnity against loss or damage is termed Insurance. Insurance is of two kinds, Property Insurance and Personal Insurance.

323. The contract between the insurance company and the person insured is called the Policy.

324. The sum paid for insurance is called the Premium. 1. A company in which the person insured participates in the profits and shares the losses, is called a Mutual Insurance Company.

2. Many mutual companies charge fixed rates of premium, and return to each policy holder annually his share of the surplus.

3. Another kind of mutual company assesses upon each person insured his share of the loss, whenever a loss occurs.

panies are sometimes called Assessment Companies.

Such com

4. A company, in which the capital to meet the losses is contributed by stockholders who alone share in the profits and losses of the business, is called a Stock Company.

PROPERTY INSURANCE.

325. Property Insurance includes indemnity against loss. or damage by fire, or Fire Insurance; against loss or damage by casualties at sea, or Marine Insurance; against loss or damage to cattle, horses, etc., or Live Stock Insurance, etc.

WRITTEN EXERCISES.

326. 1. How much is the annual premium on a policy of insurance on a factory for $8500, if the rate is 23% ?

2. A house was insured for $3600, at 11%. What was the premium?

3. A factory worth $45,000 is insured for of its value, at 13%. How much is the premium?

4. A man insured a row of 7 houses at $5800 each, paying an annual rate of 13%. How much does it cost him?

5. If a premium of $75 is paid for an insurance of $6400 on a house, what is the rate of insurance ?

6. A cargo worth $9670 was insured for of its value, at 3%. In case of shipwreck, what would be the actual loss to the owner?

7. What will it cost to insure a building worth $9840 for of its value, at %?

8. A dealer paid $375 for the insurance of a cargo of grain, at 11%. What was the amount of insurance?

9. A merchant sent his agent in St. Paul $3493.50 to invest in flour. The agent bought the flour at $4.25 per barrel, and charged 23% commission. The merchant had the flour insured at 14%, and paid $268.25 for transportation. The flour was then sold at a gain of 10% on the whole cost. What was the selling price per barrel?

PERSONAL INSURANCE.

327. Indemnity against loss of life, or Life Insurance; against loss occasioned by accidents, or Accident Insurance; against loss occasioned by sickness, or Health Insurance, are varieties of Personal Insurance.

Of these the most important kind is Life Insurance.

328. The policies issued by life insurance companies are of various kinds, the chief of which are the Life Policy and the Endowment Policy.

1. A policy which secures the payment of a sum of money at the death of the person insured is called a Life Policy.

2. A policy which secures the payment of a sum of money at a specified time or at death, if it occurs before the specified time, is termed an Endowment Policy.

WRITTEN EXERCISES.

329. 1. How much will be the annual premium on a life insurance policy for $4000, at $25.70 per $1000 ?

2. What is the annual premium on a life policy of $6500, at $29.50 per $1000?

3. A man paid a Mutual Insurance Company for 30 years an annual premium on a life policy for $3000, of $26.30 per $1000. Of this premium 15% was returned as dividends. How much did he pay in all ?

4. My life is insured for $9000, at an annual cost of $315. What is the annual premium per $1000?

5. If a person who is insured for $6000, at an annual premium of $31.40 per $1000, dies after 12 payments, how much more will his heirs get than has been paid in premiums?

6. A man insured his life for $8000, paying $26.30 per $1000. If he should live 20 years after he was insured, what would be the amount of the premiums paid?

7. A man at the age of 35 secured a policy upon his life for $5000, paying the first year $172.50, which included $1 for examination. What was the premium paid upon $1000?

INTEREST.

330. 1. When a sum equal to 6% of the money loaned is paid for the use of it for 1 yr., how much must be paid for the use of $100 for 1 yr.? For 2 yr.? For 3 yr.?

2. When the sum paid for the use of money is 10% annually, what must be paid for the use of $240 for 1 yr.? For 6 mo. ? For 3 mo. ? For 1 mo. ? Formo.? For 10 da., or of a month? For 20 da.?

3. If $500 is loaned for 2 yr., at 6% per year, what will be the amount due at the end of that time?

331. The sum paid for the use of money is called Interest.

332. The sum for the use of which interest is paid is termed the Principal.

333. The sum of the principal and interest is called the Amount.

334. In computing interest it is usual to regard a year as 12 months, and a month as 30 days.

335. To compute interest.

1. What is the interest of $100 for 1 yr. at 5% ? For 2 yr.? For 3 yr.? For 4 yr.? For 10 yr. ?

2. What is the interest of $200 for 2 yr. at 6%? For 3 yr.? For 11 yr.? For 21 yr.? yr. 6 mo. ? 3. What is the interest of $400 for 1

For 1

1 yr.? For 11 yr.? For 1 yr. 3 mo.?

yr. at 4%? For

For 1 yr. 6 mo.?