26. Required the amount of £246, 158. for 3 years, 6 weeks, and 4 days, at 21 per cent. per annum!

DISCOUNT.

DISCOUNT is an allowance made for the payment of money before it is due. Thus, if a person passed me a bill for £105, to be paid at the end of a year, and I wished money immediately, I might take it to a banker, who, if he was sure of getting the money at the end of the year, would give me £100, keeping £5 to himself for the interest of the £100 he had advanced. The £5 that the banker kept is called discount; and the £100 is the present value of £105 a year hence, at 5 per cent.

RULE-AS £100 with the interest for the given rate and time added to it, is to the sum or debt, so is the interest of £100 for the given rate and time, to the discount.

What is the discount on £250 due 6 months hence, at 5 per cent.?

EXAMPLE.-Here £2, 10s. is added to £100 for the first term, because £2, 10s. is the interest of £100 for 6 months, at 5 per cent. The second term is the debt, viz., £250. The third term is the interest on £100 for 6 months, at 5 per cent. The answer is £6, 18. 114d.; subtract this from £250, and the present

value of £250 is obtained, viz., £243, 188. 0ąd.

1. What is the present value of £640 due 2 years hence, at 5 per cent.?

2. What is the discount on £736 due 9 months hence, at 5 per cent.?

3. What is the discount on £370 due 100 days hence, at 44. per cent.?

4. What is the discount on £246, 168. from March 26, to June 23, both days included, at 3 per cent.?

COMMISSION, BROKERAGE, INSURANCE, BUYING AND SELLING STOCKS.

COMMISSION is an allowance given to an agent or factor, for buying or selling goods, negotiating bills, &c.

BROKERAGE is an allowance to a broker for procuring sales, transfers of property, &c.

INSURANCE is an allowance, called premium, given to persons who engage to make good the loss of ships, merchandise, houses, &c., that may be lost or damaged by storms, fire, &c.

STOCK is the debt owing by Government, or it is the capital of any trading company.

Any questions in these rules may be performed by the rules for Simple Interest.

1. What is the commission on £496, 16s. 6d. at 2 per cent. 2. What is the commission on £1,243, 19s. at per cent.}

3 What is the brokerage on £3,964, 14s. at 11 per cent.? 4. What is the brokerage on £467, at per cent.?

5. I employed an agent to sell a quantity of goods; having agreed to give him & per cent. upon the sales, the goods having sold for £7,648, how much am I to pay him?

6. An agent charges 4 per cent. for commission and risk of bad debts; his sales in the year are £16,780, and his losses £347, what is his income?

7. A salesman disposes of woollen goods to the amount of £1,467, muslins to £1,342, and hardware to £964, what is his commission at 23 per cent.?

8. What premium must be paid for insuring a house for £7,684 at 21 per cent.?

9. What is the premium on £4,968 at 5 guineas per cent.?* 10. What is the insurance on £6,968 for 2 years, at 44 per cent.? 11. What is the premium on £7,848 at 6 guineas per cent.? 12. What is the insurance on £796 for 3 years and 42 days, at 3 per cent.?

13. What is the value of £796 stock, at 105 per cent.?

14. What is the purchase of £978 India stock, at 741 per cent.! 15. What is the price of £7,468 bank stock, at 168 per cent.? 16. What is the brokerage on £429, 168. 6d. at 2 per cent.? 17. Required the commission on £648 at 24 per cent.?

18. What is the premium of insurance on £968 at £4, 12s. 6d. per cent.?

19. What is the expense of insuring a ship and cargo, at £3, 15s. per cent.; the ship being worth £2,450, and the cargo worth £4,768?

20. At 4 per cent., how much must be insured on goods worth £768, so that in case of loss the owner may receive the value of the goods and the premium?

21. I allow my broker 34 per cent.; how much do I owe him for selling goods to the amount of £796 ?

22. What is the purchase of £3,450 India stock, at £112 per cent.?

23. What is the purchase of £268, 168. 6d. bank stock, at 761 per cent.?

COMPOUND INTEREST.

COMPOUND INTEREST is interest, not only for the use of the sum borrowed, but also for the use of the interest, if it be not paid at the end of a year. Thus, if I borrow £100 at 5 per cent., I owe at the end of the year £105. If I wish to pay off the debt, I pay £105. If I wish merely to

If the rate be in guineas, calculate as if it were pounds, and add the twentieth to the amount

pay the interest, I pay £5, and still owe £100. If, however, I do neither, it is obvious that at the end of the second year I must pay interest, not upon £100, but upon £105.

What is the compound interest of £240, 10s. for 3 years, at 5 per cent.?

£240, 10s. amounts to in 3 years. The compound interest is found by taking the original principal, £240, 10s. from the amount in years, £278, 88. 2d., and what remains, £37, 188. 2d. is the compound interest on £240, 10s. for 3 years.

1. Required the interest on £420, for 3 years, at 5 per cent. : 2. Required the amount of £640 for 4 years, at 3 per cent.? 3. What will £436 amount to in 3 years, at 4 per cent.? 4. What is the compound interest on £678, 16s. for 6 years, at 3 per cent. per annum?

5. What will £764 amount to in 4 years at 6 per cent.?

6. What is the compound interest on £786, 10s. for 6 years, at 4 per cent. per annum?

BARTER.

When one person gives goods to another and receives, not money, but goods in return, he is said to barter.

How many yards of cloth, at 10s. per yard, ought I to get for 98 lb of tea, at 8s. per pound?

RULE WITH EXAMPLE.-Find the value of the goods given. In this example the value of the tea is found to be 7848.; you have therefore to consider how many yards of cloth you ought to receive for 7848, the value of 1 yard being 10s.

lbs.

98

8

10)784

7814

All the questions in this rule may be found either by Simple Proportion or Practice.

1. How many pairs of shoes, at 128. per pair, must be given for 206 pairs of stockings at 28. per pair?

2. How much tea, at 78. per ib, ought I to receive for 1 cwt. of coffee at 2s. per ib?

3. How much brandy, at 23s. per gallon, ought I to receive for 98 gallons of rum at 15s. per gallon?

4. A chandler gave 2 cwt. 3 qrs. of tallow at £1, 188. 6d. per cwt.; how much soap ought he to receive at 5d. per lb.

5. How much iron at 1d. per lb ought a nailer to receive for 9860 nails, at 64d. per hundred?

PROFIT AND LOSS.

The use of this rule is to discover how much is gained or lost in buying and selling goods.

Case I.-When the prime cost and selling price are given to find the entire gain or loss on any quantity of goods. Bought 12 yards of cloth at 98. 8d. per yard, and sold it at 118. 6d.; what did I gain on the whole?

RULE WITH EXAMPLE.-Subtract the cost price, 9s. 8d., from the selling price, 11s. 6d., and multiply the gain upon one yard, 18. 10d., by the number of yards bought, 12. The product, £1, 28., is the gain on the 12 yards.

8. d.

11 6

9 8

1 10

12

£1 2 0

1. Bought 256 yards of cloth at 128. 9d. per yard, and sold it at 148. 9d.; what did I gain?

2. Bought 406 lb of butter at 10d. per Ib, and sold it at 14d. per lb; what was gained on the whole?

3. Bought 248 pairs of stockings at 1s. 8d. per pair, and sold the whole for £12, 16s.; what was the gain or loss?

4. Bought 9 cwt. of cheese at £2, 12s. per cwt., and sold it at £2, 18s. per cwt.; what was the gain upon the whale?

5. Sold a chest of tea containing 144 lb, for £57, 10s.; how much did I gain, the tea having cost me 68. 8d per Ib.

Case II.-The first cost and selling price being given, to find the gain per cent.

Bought cloth at 12s. per yard, and sold it at 14s. per yard; what was the gain per cent.?