COMMISSION. 396. Commission is a percentage paid to an agent for the transaction of business. 397. An Agent is a person who transacts business for another; he is often called a Commission Merchant, a Factor, etc. 398, The Base in Commission is the actual amount of the sale, purchase, collection, or exchange. 399. The Net Proceeds is the sum left after the comnission and charges have been deducted from the amount of a sale or collection. 400. The Entire Cost is the sum obtained by adding the commission and charges to the amount of a purchase. 401. The Quantities considered are: 1. The Amount Bold, bought, etc.; 2. The Rate of Commission ; 3. The Coinmission ; 4. The Entire Cost or Net Proceeds. The goods forwarded to be sold on commission are called a consignment; the person sending them is called the consignor; and the person to whom they are sent, the consignee, or Factor. An agent residing at a great distance from his employer, is often called a correspondent; the per son for whom an agent does business is called the Principal. CASE I. 402. Given, the base and rate to find the commission or net proceeds, or entire cost. 1. An agent bought a house for $8650, bis rate of commission being 31%; what was bis commission ? OPERATION. SOLUTION.—The commission was .03} times $8650, $8650 which equals $302.75. .03 $302.75 Rule I.-Multiply the base by the rate, to find the commix rion. Rule II.-Multiply the base by 1 minus the rate, to find the net proceeds; or by 1 plus the rate, to find the entire cost. WRITTEN EXERCISES. 2. A factor sold goods to the amount of $7650, rate of commission being 3%; required the commission and the amount paid over. Ans. $7395 paid over. 3. A sells $5472 worth of dry goods, charging 31% com. mission and 17% for insuring payment; what sum will be remit to his employer ? Ans. $5212.08. 4. A lawyer having a debt of $1536 to collect, compromises for 95%; what is his commission at 41%, and what does he remit to his employer ? Ans. Com. $65.66. 5. My agent hought 40 horses for $150 each, and paid $25 for their keeping and $80 for transportation; his commission was 31%; what did the horses cost me? Ans. $6315. 6. What would be the net proceeds of a sale of 450 bbl. of mess pork @ $17.12], allowing 21% commission, and paying 5¢ a barrel storage for 30 days? Ans. $7491.09. 7. A tax collector had a warrant for $25,850, upon which be collected $12,500 at 11%, and the balance at 27%; required the amount of the collector's fees. Ans. $521.25. 8. An architect was employed to erect a city hall which cost $75,000, and was allowed 3% for plans and specifica tions, and 11% for superintendence; but on settling accounts be claimed $1500; how much did he overcharge the city ? Ans. $93 75. prime CASE II. OPERATION. 403. Given, the rate and the commission or the net proceeds or the entire cost, to find the base. 1. An agent receives $84 commission for buying goods, at the rate of 15%, what was the cost of the goods ? SOLUTION.–At a commission of 13%, .013 times the cost of the goods equals the commission, which 84 is $84; hence, the cost equals 84 divided by .013, - 6300 which we find is $6300. .013 2. An agent receives $4920 to be invested in cotton after retaining his commission, 21%; required the amount invested. SOLUTION.—The sum to be invested, increased by 21 % of itself, .equals 1.024 times the sum, which 4920 equals $4920. If 1.024 times the sum equals $4920, =4800 the sum equals $4920 divided by 1.02), which we find 1.027. is $4800. Rule 1.-Divide the commission by the rate, to find tho base. OPERATION. Rule II.-Divide the net proceeds by 1 minus the rate, or the entire cost by 1 plus the rate, to find the base. WRITTEN EXERCISES. 3. A lawyer's commission for making collections for a firm at 21% is $1600; how much did he collect? Ans. $64,000. 4. A miller sent his Detroit agent $9270 to be invested in iour, after deducting his commission of 3%; what was the commission? Ans. $270. 5. An agent buys hides on commission, at %, and pays $25 for cartage; the entire bill was $4558.75; what was the commission ? Ans. $33.75. 6. A commission merchant sells goods for a party at 11%, and charges 23% for guaranteeing the payment of the money; his commission was $284.25; required the amount of goods sold. Ans. $7580. 7. A cotton factor received $1132.71 to invest in cotton at $.24 a pound, deducting 31% commission ; how many pounds did he buy? Ans. 4560 lbs. 8. An agent bought 40 borses on commission, at 41%; be paid $25 for keeping and $50 for transportation, which, with his commission, amounted to $345; what did the horses cost apiece ? Ans. $150. %. I sold some goods on commission at 5%, through an agent, who charged me 3%; my commission, after paying my agent, was $388; required the agent's commission, my commission, and the money paid to my employers. Ans. My com., $970; agent's, $582 ; sum paid, $18,430. CASE III. 404. Given, the base and the commission or the net proceeds or the entire cost, to find the rate. 1. A commission merchant collects $7860, and his com. mission was $393; required the rate of commission. SOLUTION.- The commission, $393, equals the OPERATION. base, $7860, multiplied by the rate; hence, the rate $393 equals $393 divided by $7860, which we find is .05, .05 or 5%. $7860 Rule 1.—Divide the commission by the base, to find the rate. Rule II.- Divide the difference between the base and the net proceeds or the entire cost, by the base, to find the rate. WRITTEN EXERCISES. 2. A factor sold some land, and paid over $7742.10, retaining $117.90 as commission; required the rate. Ans. 1}%. 3. An agent bought some four, paid $54) storage, and charged $180 commission; his entire bill was $8234; what was the rate of commission ? Ans. 24%. 4. I sold a consignment of cotton goods through an agent for $2500; my commission was $112.50, and I paid the agent $37.50; what was the rate of commission of each? Ans, Mine, 45%; Agent's 11%. 5. My factor sold a consignment of sugar for which he remitted a note for $8500; he charged $127.50 for guaran. teeing payment and $191.25 for commission; what was his rate of commission and of guaranty? Ans. Com. 21%; guaranty, 11% STOCKS AND DIVIDENDS. 405. A Company is an association of individuals for the transaction of business. 406. A Corporation is a company regulated in its operations by a general law or a special charter. 407. The Stock of a company is the capital invested in the business. The owners of stock are called Stockholders 408. A Share is one of the equal parts into which the stock is divided. A share is usually $50 or $100. 409. An Installment is a sum required of stockholders as a payment on their subscription. 410. A Dividend is a sum paid to stockholders out of the gains of the company 411. An Assessment is a sum required of stockholders to meet the expenditures or losses of the company. 412. The Base upon which dividends and assessments are estimated is the original or par value of the stock. 413. The Quantities considered are as follows: 1. The Stock; 2. The Rate; 3. The Dividend or Assessment. OPERATION. CASE I. 414. Given, the stock and ra of dividend or as. sessinent, to find the dividend or assessment. 1. A owns $20,000 of the stock of a bank wbicb declares a dividend of 8%; what is his dividend? SOLUTION.--If A has $20,000 worth of stock, and $20000 the bank declares a dividend of 8%, his dividend is .08 .08 times $20,000, which is $1600. $1600.00 Rule.—Multiply the par value of the stock by the rate, to find the dividend or assessment. Note. It is often convenient to find the result by multiplying the divt dend or assessment on one share by the number of shares. WRITTEN EXERCISES 2. Miss Atherton bought 78 shares of Reading R. R stock, at $50; the company declares a dividend of 4%; what is her dividend ? Ans. $156.00. 3. Miss Lyle owns 65 shares, at $50, in an insurance company, which on account of losses, requires an assess ment of 2 per cent. ; what does she pay ? Ans. $81.25. 4. The Union gas company, whose stock is $785,000, declares a semi-annual dividend of 31 per cent.; required the amount of dividend. Ans. $27475. 5. A bas 40 shares, $50 each, of stock in a bank, which declares a dividend of 5%; what is A's dividend, and how many shares of stock would it buy at par? Ans. 2 shares. 6. A man owns 50 shares of Salem turnpike stock ($100); the company declares a dividend of 8%, payable in stock; how many shares will be then own? Ans. 54 shares. 7. A company whose capital is $250,000, pays a dividend of $84 on 24 shares ($100), and reserves as a surplus, $5760; what were the net earnings ? Ans. $14:10 |