CASE III. 449. Given, the market value, and the income or rate of dividend, to find the rate of interest on the investment. 1. What per cent. of income will be realized by purchasing 7% bonds at 95? SOLUTION.-$1 of stock will cost $.95, and pays $.07; if on $.95 the gain is $.07, on $1 it is as many per cent. as .07.95, or 77%. OPERATION. .07.95.07 Rule. Divide the annual income or dividend of the stock by its market value, to find the rate of income. WRITTEN EXERCISES. 2. What is the rate of income of New York Central 6's bought at 106 ? Ans. 5%. 3. When 6% bonds are selling at 104, what per cent. will these bonds yield? Ans. 5.7+. 4. I bought an irredeemable ground-rent of $54 per annum for $850; what per cent. do I realize ? Ans. 60. 5. Which is the better investment, 5% bonds at 113%, or 4% bonds at 110? Ans. The 5's. 6. Mr. Hull bought a ground-rent of $450 for $6575; what rate of income does it pay? Ans. 63%. 7. If I buy a $5000 mortgage at 24% discount, interest at 6%, what rate of income do I receive on it? SUPPLEMENTARY PROBLEMS. To be omitted unless otherwise directed. Ans. 67%. 8. Which the more profitable investment, Missouri 6's at 102, or W. Y. 7's at 120? Ans. Mo. 6's. 9. Mr. Rogers bought Michigan 7's at 112, and afterwards exchanged them for 6% bonds at 1064; which was the better investnent? Ans. Mich. 7's. 10. Wishing to make a permanent investment, I am recommended to take either 5's at 75, 6's at 85, or 7's at 90; which is the best investment? Ans. 7's at 90. GENERAL TAXES. 450. A Tax is a sum of money assessed on persons or property for public purposes. 451. Taxes are assessed by the national government, & state, county, or town. 452. A Property Tax is a tax upon property. Property is of two kinds; Real Estate and Personal Property. 453. Real Estate is immovable property; as land, buildings, etc. Personal Property is movable property; as money, stock, furniture, etc. 454. A Poll Tax is a tax on the person. It is assessed in some states on each male citizen not exempt by law. 455. An Assessment Roll is a list or schedule containing the names of persons taxed, the valuation of their property, and the amount of their taxes. 456. An Assessor is an officer who appraises the pro perty and prepares the assessment roll. 457. The Quantities to be considered are: 1. The Taxable Property; 2. The Rate of Taxation; 3. The Amount of Тах. Real estate is often assessed by the proper officer for not more than or of its real value. The value of personal property may be given in by the owner under oath, or if he neglects to do this, it is valued by the officer. The term poll is from the German polle, the head. A poll tax is a capitation tax, from the Latin caput, the head. In some States the income from a person's occupation is assessed at a small sum and taxed. Moner on interest secured by bond and mortgage is taxed in some States. After the taxes have been assessed, each person receives a notice of his taxation, stating the day of appeal, when he may appear before the proper officers and show reasons for correcting any mistakes that have been made. NOTE.-Government Taxes are taxes levied by the government, including Internal Revenue and Duties. They will be considered under the head of Duties and Customs. CASE I. 458. Given, the taxable property and the rate of taxation, to find the amount of tax. 1. The taxable property of a town is $794800, and the rate of taxation $.009 on a dollar; what is the tax? SOLUTION.-If the tax is $.009 on $1, on $794800 it will be 794800 times $.009, or $7153.20. OPERATION. $794800 x .009 = $7153.20 Rule.-Multiply the amount of taxable property by the rate, to find the tax. NOTE. If there is a poll tax the sum produced by it should be added to the property tax to give the whole tax. WRITTEN EXERCISES. 2. The real estate of a town is valued at $640876, and the personal estate at $750472; there are also 250 polls, at $1.50 each; what is the whole tax, the rate being 7 mills on a dollar? Ans. $10114.436. 459. Table.-In the assessment of taxes in a town, city, etc., a table is usually constructed by which the labor of calculation is greatly facilitated. The following table, based on the rate of $.015 to the dollar, is used in problems 3, 4, 5, 6, 7. Prop. Tax. Prop. Tax. Prop. Tax. || Prop. Tax. Prop. Tax. 8. Find by the table A's tax, whose property is $7580, and who pays a poll tax of $1.50. OPERATION. SOLUTION.-We find from the table the Tax on $7000-$105 4. Find B's tax, whose property is $9750, and who pays a poll tax of $1.00. Ans. $147.25. 5. A is worth $7895, and his sister $5634; what is the aggregate amount of their taxes? Ans. $202.935. 6. Mr. Mark's property is assessed at $8500; he pays for 1 poll and .1% on the income from his occupation, assessed at $800; what was his entire tax? Ans. $130.20. 7. Mr. Sidney's real estate is valued at $75000 and his personal property at $8670, both of which are assessed for of their value; he pays a poll tax of $1.00, and also % on an estimated income of $1200; what is his entire tax? Ans. $840.70. SUPPLEMENTARY PROBLEMS. To be omitted unless otherwise directed. 8. Mr. Shank's property was assessed at $3500 last year, and he paid.25% village tax, 1.025 % county tax, .45% school tax, and $1.25 poll tax; what amount of taxes did he pay? Ans. $61.62. 9. I find I have been assessed as follows: Real estate $50,000; personal property, $3600; money at interest, $15,000; income from occupation, $1500; and 3 gold watches. I obtain an abatement of on the real estate, on the personal property, $5000 on money at interest, for occupation, and 1 gold watch; how much does this lessen my tax, the rate being 8.004), and one dollar for each watch? Ans. $122.95. CASE II. 460. Given, the rate of taxation and the tax or the amount left after payment of tax, to find the amount assessed. 1. What is the assessed value of property taxed $37.50, at the rate of 5 mills on a dollar? SOLUTION.-At 5 mills on the dollar, .005 times the amount assessed equals the tax, which is $37.50; hence the amount equals $37.50 divided by .005, which we find is $7500. OPERATION. =$7500 $37.50 Rule I. Divide the tax by the rate, to find the amount assessed. Rule II.-Divide the amount left after payment of tax by 1 minus the rate. WRITTEN EXERCISES. 2. My tax is $37.80 at the rate of 4 mills on the dollar; required the property. Ans. $8400. 3. A's entire tax is $305.50; he pays a poll tax of $1.50; the rate is 8 mills on the dollar; what is the valuation of his property? Ans. $38000. 4. I have $12000 on interest, and my tax for money on interest is $33.07, at 24 mills on the dollar; for how much money at interest am I overtaxed? Ans. $2700. 5. A bridge was built by a certain town at a cost of $7580, which was raised by a tax on the property-holders of 3 mills on uollar; the collector's commission was 24%; what was the valuation of the property? Ans. $2215564.49. NOTE.-The collector's commission is included in the tax. 6. Mr. Mills paid one year .45% township tax, .3% county tax, .48% school tax, and $1.00 poll tax; his whole tax was $315.88; what was the value of his property? Ans. $24600. CASE III. 461. Given, the assessed value and the tax, to find the rate. 1. A tax of $6387.50 is to be assessed in a town; the real estate is valued at $345000, and the personal property at $477500; there are 420 polls, taxed @ $1.50; what is the rate of taxation? SOLUTION. The entire poll tax is $1.50 multiplied by 420, which is $630; subtracting this from the whole tax, we have remaining $5757.50, the property tax; dividing $5757.50 by $822500, the amount of property, we have 7 mills, the tax on $1. OPERATION. $1.50×420-$630 $6387.50-$630=$5757.50 $5757.50-$822500=.007 Rule. Divide the property tax by the amount of taxable property, the quotient will be the rate of taxation. NOTE.-If there is a poll tax, subtract it from the whole tax before dividing. WRITTEN EXERCISES. 2. A's property is valued at $7580, his tax is $35: required the rate of taxation. Ans. .0046+. |