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2. How much is the premium for insuring a stock of goods for $15000 at 14%

? 3. A man had his house insured for $5000 paying 3%, and his furniture for $3000 paying 1%. How much was the premium?

4. How much must be paid for insuring a flouring mill valued at $18000 for of its value at 21%?

5. A vessel valued at $80000, with its cargo valued at $65000, was insured for i of its value at 14%. What was the premium? What would be the actual loss to the insurance company if the above vessel should be lost at sea ?

6. Property was insured for $15850 at 31%. What amount of premium was paid?

7. Paid $275 for insuring property at 1%. What was the amount insured?

8. Paid $325 for insuring property valued at $16250. What was the rate of premium ?

9. A insured his buildings for $9500, paying a premium of $47.50. What rate did he pay?

10. Mr. Orcott paid $175 for insuring his block of mercantile buildings at 11%. How much insurance did he procure ?

11. Mr. James paid $652.50 for insuring property valued at $43500. What was the rate?

12. A man paid $180 for insuring his saw mill for its value at 3%. What was the value of the mill?

13. A merchant whose stock of goods was valued at $30000 insured it for three-fourths of its value at %. In a fire he saved $5000 of the goods. What was his loss? What was the loss of the insurance companies ?

14. The price of a quantity of silks was discovered by knowing that they were insured at 41% for two-thirds of their value, and the premium paid was $400. What was the price of the silks?

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15. A manufacturing company insured its works for of their value at 21%, paying as premium $1657.50. What was the value of the works?

16. A vessel and cargo were insured for ļof their value at 11%. The premium amounted to $2475.

At what price were the vessel and

cargo

valued ? 17. Paid $225 for insuring a store and its contents for of their value at 11%. The stock - was worth half as much as the store. What was the value of each?

18. For how much must a block of stores worth $20000 be insured, so that the insurance will cover of the value of the property and the amount of the premium at 11% ?

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CASE II.

PERSONAL INSURANCE.

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437. Personal Insurance is indemnity against loss of life, or Life Insurance; against loss occasioned by accidents, or Accident Insurance; and against loss occasioned by sickness, for Health. Insurance.

The policies issued by Life Insurance Companies are of various kinds, the chief of which are the Life Policy and the Endowment Policy.

438, A Life Policy secures a sum of money at the death of the person insured. 439. An Endowment Policy secures a

sum of money at a specified time, or at death, if it occur before the specified time.

440. Accident and Health Policies secure a stipulated sum for a certain time, in case of a disabling accident or sickness, and the face of the policy in case of death by accident.

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441. The rates of premium are based upon the expectation of life, determined by observing the death rate per thousand inhabitants.

WRITTEN EXERCISES.

442. 1. What premium must be paid annually for a life policy of $5000, at $21.10 per $1000 ?

ANALYSIS.-Since the rate of

premium is $21.10 annually for $ 21.10x 5 =$ 0 5.50 $1000, the premium for $5000 is.

5 times $21.10, which is $105.50.

PROCESS.

1

2. How much will be the annual premium on a life insurance policy for $3000 at $31.30 per $1000? | 3. What is the amount of annual premium on a life policy for $5500 at $26.38 per $1000?

4. If a person who is insured for $5000, at an annual premium of $28.90 per $1000, dies after 9 payments, how much more will his heirs get than has been paid in premiums?

5. If a man insures his life for $5000, paying $22.90 per $1000, and dies immediately after paying his annual premium for 30 years, what is the result of the investment, reckoning simple interest at 6% on the premiums paid?

6. If Mr. Bowditch insures his life for $5000 on the endowment plan when he is 40 years of age, the policy to be payable when he is 55 years of age, paying therefor $54.90 for $1000, will he gain or lose by insuring, reckoning simple interest at 7% on the premiums paid, if he lives till the policy is paid?

7. A traveling agent has an accident insurance policy for $3000, for which he pays $50 per year. His weekly compensation, in case of a disabling injury, is $30. Immediately after he makes his fifteenth payment he is disabled by an injury for 20 weeks. Does he gain or lose by the insurance, reckoning simple interest at 6% on the premiums paid ?

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443. 1. When A owes B $500, and B owes A $500, how may the accounts be settled without any transfer of money taking place?

2. When A in Chicago owes B in New York $500, and C in New York owes A $1000, how can A pay his indebtedness to B without remitting the money?

3. What will be the indebtedness of A, B and C to each other after the transaction has taken place?

4. A and C live in the same city, and B in a distant city. A owes B $2000, and B owes C $1000. How

may

B

pay his indebtedness to C without remitting the money ?

5. What will be their indebtedness to each other after A has paid B's order, or draft?

6. What will a draft for $500 cost, payable when it is presented, or at sight, if 1% premium is charged for it?

7. How much should be deducted from the price of the above draft if it is not to be paid until two months, money being worth 6%?

8. What will be the cost of a draft for $50, payable at sight, if it is purchased at 1% discount?

9. What will be the cost of a sight draft for $300, purchased at 1% premium?

10. If A in Nashville owes B in New Orleans $1000, and
C in New Orleans owes D in Nashville $1500, how may

А
pay
his indebtedness without remitting the money?

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11. If the premium is 3%, how much will it cost me to remit a draft for $800 from Cincinnati to Cleveland?

12. If a man sells a draft for $500, at a premium of 4%, how much does he receive for it?

13. A wishes to send to his agent in New Orleans a draft for $5000. If the premium on exchange is 1%, how much will the draft cost him?

14. When I pay $2025 for a sight draft on New York for $2000, what is the premium, or rate of exchange?

15. When I can buy a sight draft on Chicago for $2000, paying for it $1980, what is the rate of exchange?

16. If Mr. Burt pays $4975 for a sight draft on Cincinnati for $5000, at what.rate is exchange?

DEFINITIONS.

444. Excchange is the method of making payments in distant places without transmitting money.

445. A Draft or Bill of Escchange is a written order by one person to another to pay a specified sum of money to the person named in the writing or his order.

FORM OF A DRAFT.

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$384200

CINCINNATI, O., July 20, 1877. Twenty days after sight pay to the order of the First National Bank, Chicago, Ill., Three Hundred Eighty-four 17 Dollars, value received, and charge to the account of To JAMES H. HOOSE & Co.,

JONES BROS. & Co. Chicago, Ill. There are primarily three parties connected with a draft, viz: the person who signs it, the person who is ordered to pay the money, and the person to whom the money is to be paid.

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