7. What is the value of $2,500 of stock at 8 per cent. advance? 100+8=108 per cent. × $2,500=$2,700. A.

8. A gentleman purchased 35 shares, of $100 each, in the United States Bank, at 85 per cent. advance; what did they cost?

A. $3801.875.

9. What is the value of $4,500 stock at a discount of 5 per cent.? A. $4,263.75.

10. A merchant subscribed for 25 shares, of $50 each, in a certain railroad, which declined afterwards 153 per cent.; what was its real value then. A. $1,053.125.

11. What is the difference between $2,200 stock at par value, and at an advance of 7 per cent.? A. $160. 12. Suppose I purchased stock, the par value of which is $20,000, for 2 per cent. discount, and sold it for 2 per cent. advance; how much did I make on it? A. $800.

13. Suppose an original subscriber for 100 shares, of $50 each, in the Exchange Bank, Providence, receives a dividend of $100; what per cent. is that on his stock? [See LXXV. case .] A. 2 per cent. 14. What per cent. is equal to a dividend of $1,000 on $20,000 stock? A. 5 per cent. 15. Suppose you receive a dividend of $1,000, being at the rate of 5 per cent., on your bank stock; what amount of stock have you? [See LXXV. case iv.] A. $20,000.

16. Suppose a merchant to have been an original subscriber for 500 shares, of $50 each, in the Bank of America, payable by installments, as follows:-in three months, which he sold for 5 per cent. advance; in six months, which brought him 63 per cent. advance; and the balance in nine months, which he was compelled to sell at 8 per cent. discount; what did he gain by the whole transaction? A. $808.333.+

COMMISSION.

LXXVII. 1. COMMISSION is an allowance of so much per cent. made to factors, brokers, and other agents, for their services in buying and selling for their employers.

2. A Factor is a person employed by another at a distance, to transact business on his account.

3. A Broker is a person who deals in stocks, goods, &c., or exchanges money, either on his own account or for others.

LXXVII. Q. What is Commission? 1. Factor? 2. Broker? 3. What is the rule? 4. How many dollars does the commission of 2 per cent. on $300 amount to?-5 per cent. on $400? How many dollars must I pay for changing $5,000. when the brokerage is per cent.? How much for changing $2,000 at the same rate?

RULE.

4. The rule is the same as that for estimating the value of stocks. 5. If my agent sells goods amounting to $400, what is his commission at 2 per cent.? $400 × 2 per cent. $10. A.

6. My correspondent writes me that he has purchased goods to the amount of $5,000; what will his commission amount to at 3 per cent.? A. $150. 7. What is the commission on $417 at 1 per cent.?-at 1 per cent.?-at 2 per cent.?-at 3 per cent.?-at 43 per cent.?

A. $4.17; $6.251; $8.34; $14.59; $19.8075. 8. Suppose a factor purchases 300 pounds of indigo for $2.50 a pound; what will his commission amount to at 6 per cent.?

A. $48.75.

9. What does a broker exact for changing $3,700 in bills on the Bank of America, New York, for the same sum on the Phoenix Bank, Connecticut, the rate of exchange being 3 per cent.? A. $13.87.

10. Suppose a broker purchase on your account $20,000 stock in the "Great Western Canal," at 13 per cent. advance; what will the stock cost, and what will his brokerage amount to at the rate of per cent.? A. $22,625, cost; $28.281.

11. If a broker receive 80 cents for changing $400, at what per cent. does he reckon the exchange?

A. per cent.

12. Suppose I remit to my factor in New York, $6,000, for the purchase of flour, and he writes me that the flour cost $10 a barrel, and that his commission is 2 per cent.; how many barrels of flour shall I receive, after deducting his commission? A. 585 barrels.

13. Suppose a commission merchant sells on my account 200 bales of cotton, each bale containing 315lb. 8oz., at 13 cents a pound, for a note at six months, and charges 2 per cent. for selling, and 3 per cent. more for guaranteeing the paper; what will be the balance due me? A. $7759.587.+

14. A commission merchant sold 200hhd. 7gal. 3qt. 1.504pt. of molasses for $30 a hogshead, for which he charged 3 per cent. commission; what will be the balance due his employer?

A. $5823.666.+

INSURANCE.

LXXVIII. 1. INSURANCE is a security, by paying a stipulated sum, called a premium, to indemnify the party insured against such losses on ships, houses, goods, &c., as may happen from storms, fire, or other accidents.

LXXVIII. What is Insurance? 1. A policy? 2. How is the cost of insuring estimated? 2. How many dollars must you pay for procuring an insurance on your house, valued in the policy at $10,000, the rate being per cent.?

2. The CONTRAct of Indemnity' is called a POLICY, and the premium paid for it is usually stated at so much per cent. as in the foregoing articles.

3. What is the premium for insuring an East India ship valued at $25,000, at 151 per cent.? A. 3,875. 4. What is the premium for insuring $2,000 at 21 per cent. ?—3 per cent. ?-43 per cent.-5 per cent. ?-7 per cent.-8 per cent. ? A. $50; $60; $87.50; $105; $143; $165.331. 5. If you effect an insurance on your house for $5,000 at per cent. per annum, what would it amount to in 5 years? A. $93.75.

6. A manufacturer effected an insurance on his factory building and machinery, both valued in his policy at $15,000, paying a premium of 2 per cent. per annum. In the second year the establishment suffered by fire, as was estimated, $1,200; how much did he save by the insurance? A. $576.

7. Suppose you pay a premium of 30 cents on $100 for insuring $10,000 on your house, $2,000 on your furniture, $450 on your books, $600 on your span of horses, and $350 on your harnesses, buffalo robes and saddles; how many dollars does the insurance on all these articles cost? A. $40.20.

LOSS AND GAIN.

CASE I.

LXXIX. To find the sum gained or lost.

RULE.

1. Find the value of the given rate per cent. as before.

2. If I buy goods amounting to $1,675, and sell them for 15 per cent. gain, what are my profits?

A. $251.25.

3. If I sell goods for 10 per cent. loss, which cost me $500, how many dollars do I lose by them?

A. $50.

4. Suppose I buy 4001⁄2 barrels of flour for $163 a barrel, and sell it for per cent. advance; how many dollars do I gain by it?

CASE II.

A. $25,133.+

To find what price must be demanded to gain or lose a certain per

cent.

RULE.

5. If the given rate is gain per cent. add it to 100 and multiply the

LXXIX. Q. When goods worth $500 are sold for 10 per cent. loss, what do they bring? What is the rule? 1. When calico costs 30 cents per yard, at what price must it be sold to gain 5 per cent.?-to lose 6 per cent.?-to gain 10 per cent.? What is the rule? 5. How is the gain or loss per cent. ascertained? 13.

1 INDEMNITY. Security given to save from harm or loss; security against punish ment.

cost by that sum; but if the rate is loss per cent. deduct it from 100 and multiply by the remainder.

6. If I buy a quantity of wheat for $200 and wish to gain 10 per cent. by the sale of it, what must I ask for it?

A. $220. 7. A man paid $50 for goods which he purchased at auction, and which he was glad to sell at a loss of 10 per cent.; what did he receive for them?

A. $45. 8. A man bought a cow for $44 and sold it for 15 per cent. advance; what did he get for it? A. $50.60, 9. A merchant bought a hogshead of molasses for $44, and by accident, 9 gallons leaked out; what must he sell the remainder for per gallon, so as not to lose but 10 per cent. ? A. 73 cents.

10. A merchant bought 108 barrels of flour for $10 a barrel; paid for carting, 6 cents a barrel, and for assistance in storing it $1,50; now how much must he ask a barrel for it to gain 20 per cent.?

A. $12.388+.

11. A wholesale dealer in flour bought in one week the following lots, viz.-118 barrels for $9 per barrel, 212 barrels for $9 per barrel, 315 barrels for $9 per barrel, and 400 barrels for $10 per barrel. His store rent was $12.50 a week; clerk hire, $17 per week, and insurance per cent.; what price per barrel will cover all the expenses and afford him 15 per cent. profit? A. $11.018.+

CASE III.

To find the gain or loss per cent.

RULE.

12. First find what the gain or loss is by subtraction, then divide the remainder by the actual cost.

13. A merchant bought molasses for 24 cents a gallon, which he sold for 30 cents; what was his gain per cent.?

A. .25 25 per cent.

14. A grocer bought a hogshead of wine for $75, from which several gallons leaked out; the remainder he sold for $60. What did he lose per cent. [.02 is 2 per cent., but .2 is 20 per cent.]

A. 20 per cent. 15. A man bought a piece of cloth for $20, and sold it for $25; what did he gain per cent.? A. 25 per cent.

16. A grocer bought a barrel of flour for $8, and sold it for $9; what was the gain per cent.? A. 12 per cent. $318.50, and sold A. 6 per cent.

17. A merchant bought a quantity of goods for them for $299.39; what was his loss per cent. ? 18. If I buy a horse for $150, and a chaise for $250, and sell the chaise for $350 and the horse for 100, what is my gain per cent.? A. 12 per cent.

19. Bought 20 barrels of rice for $20 a barrel, and paid for transportation of it 50 cents a barrel; what will be my gain per cent. in selling it for $25.62 a barrel? A. 25 per per cent.

INTEREST.

LXXX. 1. INTEREST' is the premium2 given by the borrower to the lender for the use of money.

2. Interest is usually reckoned at so much per cent. like stocks; it however differs from them in limiting the per cent. to definite3 periods of time.

3. Thus, 6 per cent. per annum" means $6, and 8 per cent. per annum, $8; each for the use of $100 for one year, and in the same proportion for a longer or shorter period of time.

4. The rate per cent. in most countries is established by law, and if a higher rate be exacted it is called usury."

5. The legal rate varies in different countries; thus, it is 5 per cent. in England, and 6 per cent. in our country with the following exceptions.

6. In New York, S. Carolina, Michigan and Wisconsin, it is 7 per cent.; in Georgia, Alabama and Mississippi, 8 per cent.; and in Louisiana, 5 per cent.

*

7. When no mention is made of the rate of interest, the lawful one is always understood.

8. If A borrows of B $1,000, and agrees to pay him 6 per cent. interest, that is, $6 for every $100, making $60 interest, A evidently owes B at the year's end, $1000 and $60, making $1060.

9. The sum lent is called the PRINCIPAL; the per cent. agreed on, the RATE; and the principal and interest added together the Amount

CASE I.

To find the interest for one year. [See LXXV. 8.]

RULE.

1. Multiply the principal by the given rate, and cut off two more

LXXX. Q. What is Interest? 1. How is it reckoned? 2. In what respect does it differ from per cent.? 2. What does 6 per cent. per annum mean? 3. What is usury? 4. What legal rates are mentioned? See 5, 6. How is the rate known when it is not mentioned? 7. How many dollars are due for the use of $1,000 for 1 year, when the rate is 6 per cent.? 7. What is the proper name for each of these terms? 9.

CASE I. Q. What is the rule for finding the interest for 1 year? 1.

1 INTEREST. Concern; advantage; good; share; portion. Regard to private property; any surplus advantage.

2 PREMIUM. Award; compensation; prize; bounty; sometimes synonymous with interest.

3 DEFINITE. Limited; determinate; certain; fixed; exact.

4 PERIOD. Circuit; epoch; a definite portion of time; end; stop; time between one occurrence and another.

5 PER ANNUM, from the Latin, per, by, and annum, a year; hence the origin of annually, meaning yearly.

6 USURY. Formerly, interest; now, illegal interest; a premium greater than that allowed by law.

7 LEGAL. Lawful; according to law.

* In some of the Southern Sta es, it is not considered usury to receive a much higher rate; thus, in Louisiana 10 per cent. is the usual rate.