5. At 5 per cent will gain $4.27 in 2 yr. 6 mo. ? 6. At 7 per cent will gain $116.127 in 4 yr. 4 mo. 4 da.? 200. Compound Interest. When interest is to be paid at regular intervals, or, if unpaid, is to be added to the principal, to form a new principal on which interest is to be computed, it is called COMPOUND INTEREST. The following example illustrates this: 1. What is the compound interest of $784 for 2 yr. 8 mo. at 6 per cent, payable annually? c+de 880.902 .04 of ef = 35.236 amount due at end of 2d year. e+fg 916.138 amount due at end of 2 yr. 8 mo. ga=h=$132.138= compound interest for 2 yr. 8 mo. 2. To what sum will $437 amount in 2 yr. 6 mo. at 4 per rent, payable semiannually? +j➡k➡,!82.483 = a due at end of 2 vr 4 no 3. What is the compound interest of $938.63 for 4 mo. at 6 per cent, payable annually? 4. What is the compound interest of $573.32 for 2 yr. 3 mo. at 8 per cent, payable quarterly? 5. To what sum will $1000 amount in 3 yr. 2 mo. at 6 per cent, payable annually? 6. To what sum will $500 amount in 4 yr. cent, payable semiannually? 3 mo. at 5 per 201. Table for Compound Interest. Table showing what part of any principal is equal to its amount at 3, 4, 5, 6, 7, and 8 per cent annual compound interest, for any number of years not exceeding 25. Yrs. 3 per cent. 4 per cent. 5 per cent. 6 per cent. 7 per cent. 8 per cent. 3.1.092727 1.124864 1.157625 1.191016 1.225043 1.259712 4. 1.125509 1.169858 1.215506 1.262477 1.310796 1.360489 5. 1.159274 1.216653 1.276281 1.338225 1.402552 1.469328 6.1.194052 1.265319 1.340096 1.418519 1.500730 1.586874 7.1.229874 1.315932 1.407100 1.503630 1.605781 1.713824 8. 1.266770 1.368569 1.477455 1.593848 1.718186 1.850930 9. 1.304773 1.423312 1.551328 1.689479 1.838459 1.999005 10. 1.343916 1.480244 1.628894 1.790848 1.967151 2.158925 11. 1.384234 1.539454 1.710339 1.898298 2.104852 2.331639 12. 1.425761 1.601032 1.795856 2.012196 2.252191 2.518170 13. 1.468534 1.665073 1.885649 2.132928 2.409845 2.719624 14. 1.512590 1.731676 1.979931 2.260903 2.578534 2.937194 15. 1.557967 1.800943 2.078928 2.396558 2.759031 3.172169 16. 1.604706 1.872981 2.182874 2.540351 2.952164 3.425943 17. 1.652848 1.947900 2.292018 2.692772 3.158815 3.700018 18. 1.702433 2.025816 2.406619 2.854339 3.379932 3.996019 19. 1.753506 2.106849 2.526950 3.025599 3.616527 4.315701 20. 1.806111 2.191123 2.653298 3.207135 3.869684 4.660957 21. 1.860294 2.278768 2.785962 3.399563 4.140562 5.033834 22. 1.916103 2.369918 2.925260 3.603537 4.430402 5.436540 23. 1.973586 2.464715 3.071524 3.819749 4.740530 5.871464 24. 2.032794 2.563304 3.225100 4.048934 5.072367 6.341181 25.12.093778 2.665836 3.386355 4.291870 5.42743316.848475 USE OF THE TABLE. — The amount of any sum of money, at compound annual interest, for any time and rate mentioned in the table, may be found by multiplying the principal by the appropriate number selected from the table. This will be illustrated in the following examples and solution. 1. What is the amount of $245.73 for 12 yr. 6 mo. 20 da. annual compound interest at 6 per cent? Solution. By the table, it appears that the amount of a sum for 12 years, at 6 per cent, compound interest, is 2.012196 times the princial. Multiplying $245.73 by 2.012196, we have $494.45692308, or, omitting the denominations below mills, 3 of a = a= $494.457 = amount for 12 years. = b = 16.481 = interest for 6 mo. 20 da. a+b=c=$510.938 = amount for 12 yr. 6 mo. 20 da. What is the amount at annual compound interest of — 4. What is the compound interest of 5. - $1137.38 for 13 yr. 6 mo. at 6 per cent? 6. $328.96 for 9 yr. 3 mo. at 4 per cent? 202. Commission. Money received for services in buying and selling goods for others is called COMMISSION, and is usually reckoned at a certain per cent of the cost of the goods bought, or price of hose sold. A merchant who makes it his business to buy and sell on commission is called a COMMISSION MERCHANT. (See 177th page, Ex. 21, Note.) 1. A commission merchant sold goods for a manufacturer to the amount of $568.36, for which he charged a commission of 2 per cent. What was his commission, and how much will be due to the manufacturer ? 2. A commission merchant bought goods for a country trader to the amount of $738.27, for which he charged a commission of 1 per cent. What was his commission, and what sum must the trader remit to pay for the goods and commission? Answer. His commission = .01 of $738.27 = $11.07, and the trader must remit $738.27 + $11.07 = $749.34. 3. I sold for Seth Jones 2024 pounds of butter at 19 cents per pound, and 5276 pounds of cheese at 74 cents per pound. What was the value of my commission at 2 per cent on the sales? How much money ought I to pay him? 4. I bought for Francis Jackson 50 pairs of boots at $3.87 per pair, 100 pairs at $2.75 per pair, 75 pairs at $2.16 per pair, 100 pairs of shoes at $1.56 per pair, and 80 pairs at $1.08 per pair. What was the value of my commission at 2 per cent on the purchase? How much money must Mr. Jackson remit to me to pay for the goods and my commission? 5. I have sent $5000 to my agent in New Orleans, directing him to expend it for cotton, first deducting his commission of 2 per cent on the purchase. What will be his commission, and what will he expend for cotton? Suggestion. The $5000 sent includes the sum to be actually invested and my agent's commission of 2 per cent on that sum, and is therefore 10% of the purchase money. Hence, the purchase money, or sum to be expended by my agent, is 102 of $5000, and his commission is of $5000. For proof, see if the sum expended, plus .02 of it, equals $5000. 6. I have received $5600 from my correspondent in St. Louis, with directions to expend it in merchandise, first deducting my commission of 21 per cent on the money expended. How much ought I to expend? 7. My agent in Rochester writes that he has purchased a lot of flour for me at $5 per barrel, and that the entire cost of the flour, including his commission of 21 per cent, is $1600 How many barrels of flour were purchased? 8. Briggs & Grant sold for Jenks, Clarke, & Co. 1000 brooms at $.25 apiece, for which they charge a commission of 4 per cent. Pursuant to instructions, they invest the balance in sugar at 8 cents per pound, first deducting their commission of 2 per cent on the purchase. How many pounds of sugar did they buy? 9. My agent at Cincinnati writes that he has purchased on my account a lot of provisions, and that his commission of 11⁄2 per cent on the purchase is $13.50. How many dollars worth of provisions has he bought? 10. My agent at New Orleans has purchased for me a lot of cotton at 6 cents per pound, for which he charges a commission of 13 per cent. His commission amounts to $38.80. How many pounds of cotton has he bought, and how much money must I remit to him to pay for the cotton and his commission? 11. Haskell & Latham sell for me, at auction, goods to the amount of $8732. Their charges are as follows: Auction tax, 1 per cent; commission, 4 per cent; guarantying the sales, 3 per cent; advertising, $23.25; truckage and storage, $11.25. How much money will be due me? Suggestion. The auction tax, commission, and guaranty amount to 8 per cent of the value of the goods, which, together with the other expenses, must be deducted from the value of the goods, to leave the sum due me. 12. Lewis & Johnson sell for Field & Dean 96 cases of cassimere, each case containing 276 yards, at $1.25 per yard, for which they charge a commission of 34 per cent. They receive instructions from Field & Dean to remit them half of the net proceeds, and to invest the remainder, after deducting a commission of 14 per cent on the purchase, in wool, at 50 cents per pound. What was the value of the cash remitted to Field & Dean? How many pounds of wool were bought? |