17. How large a sight draft on New York can be purchased in St. Joseph, Mo., for $1800, when the exchange is at 5% discount? 18. How large a draft, payable 30 days after sight, can be bought for $2000, exchange being at 1% premium, and money being worth 6% ? 19. Find the face of a draft on New York, at 60 days sight, bought for $650, exchange being at 11% premium, and money being worth 6%. 20. What is the face of a draft on New Orleans, at 90 days sight, which may be bought for $1000, exchange being at 7% discount, and money being worth 7% ? FOREIGN EXCHANGE. 408. Foreign Exchange treats of drafts drawn in one country and payable in another. 1. Drafts drawn in one State and payable in another are sometimes considered as foreign drafts or bills of exchange. 2. Foreign bills of exchange are drawn upon Antwerp, Amsterdam, Hamburg, Bremen, Berlin, and other commercial centers, but drafts upon London and Paris are much more common since they are paid in any part of Europe. 409. Three drafts or bills of the same date and tenor, named respectively the first, second, and third of exchange are sent by different mails, so that if one is lost the other may be presented. Such a set is called a Set of Exchange. When one bill of the set is paid the others are void. 410. The value of a pound sterling or sovereign in American gold is $4.8665. The value of a franc is about $.193, or 5.18 francs per dollar. The values of the pound sterling and the franc given above, are the values when exchange is at par, but they are continually fluctuating on account of the demand for bills of exchange, the rate being above or below par according as the demand is large or small, WRITTEN EXERCISES. 411. 1. What is the cost in New York of a sight draft on London for £312 15s. 5 d., when exchange is $4.87 for a pound sterling? SOLUTION. £312 15s. 5 d. £312.7708, value in pounds and decimals of a pound. $4.87 x 312.7708 $1523.193+, the cost of the draft. 2. How large a bill of exchange at sight on London can be bought in New York for $2984.38, exchange being at $4.86 for a pound sterling? $2984.38 $4.86 £ 614.0699 SOLUTION. £614.0699. £614 1s. 4 d., the face of the draft. 3. What must be paid in New York for a bill of exchange at sight on London for £425 8s., when sterling exchange is quoted at $4.87? 4. What will a sterling bill for £317 9s. cost in Philadelphia when exchange is quoted at $4.90? 5. How large a draft at sight on London can be bought in Chicago for $1950, when exchange is $4.86 ? 6. How large a bill of exchange at sight on London can be bought in New York for $2875.80, when exchange is quoted at $4.87? 7. How large a bill of exchange at sight on London can be bought in New York for $4000, when exchange is $ 4.865 ? 8. How much must be paid for a bill of exchange on Paris, at sight, for 5000 francs, exchange being 5.16 francs to the dollar? 9. What must be paid for a sight bill of exchange on Paris for 7865 francs, exchange being 5.18 francs to the dollar? 10. Find the cost of a bill of exchange at sight on Bremen for 5344 marks, exchange being at $.95 (per 4 marks). PARTNERSHIP. 412. 1. If two men, who have equal sums invested in the same business, gain $100, what is each man's share of the gain? 2. If one man furnishes of the capital, and another of it, and the gain is $1200, what should be the gain of each? 3. Mr. A furnishes $3000 of the capital, and Mr. B. furnishes the rest, which is $5000. What part of the profits should each receive? 4. Four partners furnish money in the proportion of $2000, $3000, $4000, and $5000 respectively. What part of the gain should each one receive? 5. Three men engage in business and furnish the following sums respectively: A, $5000; B, $4000; C, $3000. How much of the gain should each receive, if $1200 was gained during the year? 6. The profits of a company were $800 for a certain time. What share of the profits did each partner receive, if the capital contributed by them was $900, $700, and $800 respectively? 7. A and B formed a partnership after A had been doing business alone for 6 months. A had $5000 invested during the year, and B had $10,000 invested for 6 months. The gain was $5000. What was each one's share of the gain? A had in it 5 cows What should each 8. The cost of a pasture was $27. for 3 weeks, and B 3 cows for 4 weeks. one pay? 413. An association of two or more persons for the purpose of conducting business is a Partnership. 414. The persons associated in business are Partners. They are termed collectively a company, a firm, or a house. 415. PRINCIPLE. The gains and losses of a firm are shared in proportion to the amount of capital each partner invests, and the length of time it is used in the business. WRITTEN EXERCISES. 416. 1. A, B, and C engaged in business, A furnishing $9000 of the capital, B $5000, and C $6000. If they gained $6000, what was each partner's share of the gain? SOLUTION. $9000+ $5000+ $6000 = $20,000, the entire capital. 9000 or 20 20000 ..2% of $6000 5000 or 20000 of $6000 6000 or 1% 20000 = A's share of the capital. = $2700, A's share of the gain. B's share of the capital. $1500, B's share of the gain. C's share of the capital. ..of $6000 = $1800, C's share of the gain. 2. A, B, and C formed a partnership in business, A furnishing $8000 of the capital, B $4500, and C $3500. They gained $3200 the first year. What was each partner's share of the gain? 3. A, B, and C formed a partnership, A putting in $4500, B $5400, and C $4200. On closing the business they found they had lost $2400. What was the loss of each ? 4. Three men engaged in business. of the capital, B $9600, and C $6400. A furnished $6000 gain of $4800, and then sold out for $30,000. What was each partner's share of the gain? 5. A, B, C, and D formed a partnership. A put in $5625, B $5250, C $7125, and D $6000. What was each partner's share of a profit amounting to $6960? 6. A, B, and C formed a partnership, A contributing $5500, B $6500, and C $4500. When the business was closed up C received $1500 for his share of the gain. How much should each of the others receive? 7. A and B were engaged in business two years, making an annual profit of $8190. During the first year A owned of the stock, and during the second year B owned & of it. What was each partner's share of the total profits? 8. E, F, G, and H formed a partnership with a capital of $30,000. E furnished $6000, F $7000, G $8000, and H the remainder. They gained 18% of the joint stock. What was each partner's share of the profit? 9. Three partners had a gain of $6250 to divide according to each member's investment. A invested $10,000, B invested $15,000, and C invested $25,000. What was the net gain of each? 10. A, B, and C engage in business together. A puts in $20,000, and after 3 mo. he takes in B as a partner with $20,000. At the end of 3 mo. more they take in Cas a partner, with a capital of $10,000. If they gained during the year $7800, what was each partner's share of the gain? SOLUTION. $20,000 employed for 12 mo. = 240,000 for 1 mo., A's capital. The entire capital for 1 mo. = 480,000 .. A's share of the gain is 240000 or of $7800, which is $3900. B's share of the gain is C's share of the gain is 180088 or 3 of $7800, which is $2925. 480000 6000000 or 1 of $7800, which is $975. 480000 |