4. If 1£. costs $43, 496.764£. will cost 496.764 times $44, which are $2207.84, the cost in U. S. currency. Therefore, the bill of exchange on England, when exchange is at 43 per cent. premium, will cost $2207.84. (a.) RULE.-I. Multiply the amount of the bill expressed in pounds and decimals of a pound by the cost of one pound at the given rate of exchange, and the product will be the cost of the bill. II. Multiply the cost of the bill by $43, the nominal value of a pound, and the result will be the cost of the bill in dollars. 703. What will be the cost in U. S. currency of a bill of exchange on Liverpool of 371£. 8s. 9d., the rate of exchange being 25 per cent. premium? 704. What will be the cost of a bill of exchange on London of 321£. 2s. 3d., the rate of exchange being 6 per cent. premium? 705. I wish to remit 347£. to my agent in Manchester; what will a bill of exchange cost in New York, the rate of exchange being 20 per cent. discount? LESSON XCI. 289. To find the amount of a bill of exchange on England, which can be purchased for a given sum of U. S. currency. What is the amount of a bill of exchange on Liverpool, which I can purchase for $1000, the rate of exchange being 11 per cent. premium? MODEL OPERATION. 1. 1£.+.11 1.11£., the cost of one pound. 2. 1.11×$43=$4.933, the cost of 1£. in U. S. currency. 3. 1000$4.933£ 202.7163, £ 202+14s.+3d., the amount of the required bill. = ANALYSIS.-1. Find the cost of 1£. 2. Find the cost of 1£. in U. S. currency. 3. Find the amount of the bill. If $4.933 at the given rate of exchange are required to purchase 1£.; as many pounds can be purchased for $1000 as $4.933 are contained times in $1000, which are 202.7163, equal to 202£. 14s. 3d. Therefore, $1000 will purchase a bill of exchange in Liverpool to the amount of 202£. 14s. 3d., if the rate of exchange is 11 per cent. premium. (a.) RULE.-Divide the given sum by the value of one pound at the given rate of exchange, and the quotient will be the amount in pounds and decimals of a pound. 706. I wish to make a remittance to London of $4673, exchange being at 83 per cent. premium; what is the amount of the bill that I can remit for that sum? 707. A merchant wishes to send $4834 to his agent in Liverpool, with which to purchase goods; what is the amount of the bill which he can remit for that sum, the exchange being 37 per cent. premium? 708. What is the amount of a bill of exchange on London, that I can purchase for $3783, exchange being at 13 per cent. premium? QUESTIONS.-What is tare? (232.) What is leakage? (233.) What is breakage? (234.) What is gross weight? (235.) What is net weight? (236.) Deduce a rule from the analysis for finding the amount of duty on an invoice of merchandise. (237.) What is interest? (238.) What is the principal? (239.) What is the rate per cent.? (240.) What is the amount? (241.) What is simple interest? (242.) What is compound interest? (243.) What is legal interest? (244.) Deduce a rule for finding the interest on a given principal at a given time at a given per cent. (245.) - LESSON XCII. 290. To find the cost of a bill of exchange on France. What must be paid for a bill on Paris of 234.31 francs, exchange being 5.15 francs per dollar? MODEL OPERATION. 234.31 fr.÷5.15 $45.497, the cost of the bill. (a.) ANALYSIS.-If 5.15 fr. cost $1, at the given rate of exchange, 234.31 fr. will cost as many dollars as 5.15 fr. are contained times in 234.31 fr., which are 45.497. Therefore, a bill of exchange on Paris, of 234.31 fr., at 5.15 fr. per dollar, will cost $45.497. 709. What must be paid for a bill on Paris of 34087 francs, the exchange being 51 francs per dollar? 710. What is the value of a bill on Paris of 83090 fr., exchange being 11.31 francs per dollar? 291. To find the amount of a bill on France, that can be purchased for a given sum of U. S. currency. I wish to remit $500 to Paris; what will be the amount of the bill in francs, the exchange being 7.5 fr. per dollar? MODEL OPERATION. 500X7.5 fr. 3750 fr., the amount of the bill. (a.) ANALYSIS.-If $1 at the given rate of exchange will purchase 7.5 fr., $500 will purchase 500 times 7.5 fr., which are 3750 fr. Therefore, $500 will purchase a bill to the amount of 3750 fr., when the exchange is 7.5 fr. per dollar. 711. A merchant has $1374 with which to purchase a bill of exchange on Paris; what will be the amount, the exchange being 5.14 fr. per dollar? 712. What will be the amount of the bill of exchange on Paris that can be purchased with $5000, exchange being 13.14 fr. per dollar? QUESTIONS.-Deduce a rule from the analysis for finding the interest on a given principal, for a given time, at a given per cent., by the 6 per cent. method. (247.) What are the established rates of interest in the several states? (244., a.) What is a partial payment? (248.) What is an indorsement? (249.) What is the Supreme Court rule for finding the amount of interest on notes, when partial payments have been made? (250.) LESSON XCIII. EQUATION OF PAYMENTS. 292. Equation of Payments is the process of finding the time in which several amounts due at different times without interest may be paid without loss to either party. 293. The Term of Credit is the time from the incurring of the debt to the date at which it becomes due.' 294. The Equated Time is the date at which the several debts may be paid without loss to either debtor or creditor. 295. An Account is a statement of items, or a record of mercantile transactions. 296. The Balance of an account is the difference between the debits and the credits. 297. To find the equated time of payment of an account, when the items are reckoned from the same date. On Mar. 1, 1864, I owe Mr. Blore 3 dollars to be paid in 3 months, 5 dollars to be paid in 8 months, and 12 dollars to be paid in 9 months; at what time may I pay the whole amount without loss to either party? MODEL OPERATION. $ 3X3 (mo.)=$1X9 (mo.) $ 5X8 (mo.) $1X40 (mo.) $12X9 (mo.)=$1X108 (mo.) $20 157 mo.÷20=7.85-7 mo. 25 da. Mar. 1, 18634+7 mo. 25 da. Oct. 26, 1863, Ans. ANALYSIS.*-1. The interest of $3 for 3 mo. is equal to the interest of $1 for 3 times 3 mo., or 9 mo. 2. The interest of $5 for 8 mo. is equal to the interest of $1 for 5 times 8 mo., or 40 mo. 3. The interest of $12 for 9 mo. is equal to the interest of $1 for 12 times 9 mo., or 108 mo. 4. The interest of $3, $5, and $12, to the times of their payment is equal to the interest of $1 for the sum of 9 mo., 40 mo., and 108 mo., (157 mo.) 5. If $1 requires 157 mo, to gain a certain amount of interest, $20 will require of 157 mo., which is 7.85 mo., equal to 7 mo. 25 da., which is the average term of credit. 6. 7 mo. and 25 da. after Mar. 1, 1863, falls on Oct. 26, 1863, which is the equated time of payment. (a.) RULE.-I. Multiply each payment by the time to the date at which it becomes due, divide the sum of the products by the sum of the payments, and the result will be the average term of credit. II. Add the average term of credit to the date at which the items become due and the sum will be the equated time. QUESTIONS.-What is the rule for computing bank discount? (268., a.) What is the rule for finding the proceeds? (268., a.) Deduce a rule from analysis for finding the face of a note, when the *NOTES. This method of averaging accounts is used on the principle of bank discount; that is, that the discount equals the interest. 2. When a payment is to be made down it has no product, but it must be added to the other payments. |