PROBLEM II. In a sale of goods for $100, at 1% commission, the owner will realize $99; that is, te of the amount of sale. PROBLEM III. When stocks, bonds, drafts, or currency, are purchased at a discount of 2%, the cost of $100 worth will be $98; that is, te of the face of the bond, etc.; but when they are purchased at a premium of 2%, the cost of $100 worth is $102; that is, 10% of the face. PROBLEM IV. In the exchange of currency, when there is a premium on the funds on hand, as that of English money to be exchanged into United States, the premium in favor of England is about 9%; it is computed as follows: Eng. £ x 40 x 18% = $ U. S., and $ U. S. X6 x 18= £ Eng. that is, England gets $109 for every $100 of her money, and the United States must pay $109 of her money for $100 English money. REM.—This is according to the old exchange value. Now, however, the exchange value of £1 is fixed at $4.86. EXAMPLES. 1. A broker sold goods to the amount of $6000, at 2% commission, and invested the balance of the proceeds, after deducting 2% on the amount of purchase; what was the owner's portion of the sale, and what amount of goods were purchased ? $6000 x 1% = $5880 = owner's portion of the sale. $5880 x 18% $5764.7014 = amt. of goods purchased. :: 6000 x xH=6000 41 49 51 $576414, amt. of goods purchased. REM.-Observe the difference in the ratios of the sale and purchase. 2. What is the cost of a bond for $5000 at 5% discount, stocks whose face indicate. $2000 at 4% premium, $1000 currency at 2% discount, and $3000 gold at 8% premium ? $5000 x una = $4750 2008 x 18= 2080 1000 x 980 300 x H88 3240 $11050 COR.—When brokerage is paid in the exchange of money, the percentage is on the amt. purchased, which, if the rate is 2%, is 109 of the funds on hand. 3. If a broker makes sales to the amount of $500, on which he receives 3%, what is his commission? 5 5 $500 x = $15. 2. What is the cost of a draft for $1000 at a premium of 1% ? 10g 201 200 3. What is the face of a draft at % premium, costing $1005 ? XØø 200 XØØ3 5 4. A broker makes sales for $4325, at 2%; what is the brokerage, and what does the owner realize ? 43.25 x = $86.50, commission. 43.25 x $4238.50, owner realized. 98 10 5. A merchant sells to a broker $3275 uncurrent funds at 5% discount; what does he realize? 163.75 x 19 6. An architect charges 14% for plans and specifications, and 21% for superintending a building, the cost of which is $10000; what is the architect's fees? Ans. $400. 7. A broker has 2% commission, and 3% for guaranteeing payment; what does he receive on sales amounting to $42325 ? Ans. $2116.25. 8. I sent my broker $4000 to purchase goods; what amount of goods did he purchase after deducting commissions at 2% on the amount of goods ? $4000 x 188. For every $102 he gets $100 worth of goods. 9. Bought a draft on New York, the face of it $500 premium, 1%; what is the whole cost and the premium? 1001 401 $500 X $501.25 = cost. 100 400 500.00 Premium, $1.25 10. Sold goods to the amount of $4444, and invested the proceeds, after retaining my commissions, which were 2% on the sales, and 1% on the investment; what was the amt. of investment? 11. A man purchased of a broker 1000 dollars in gold, on which he pays a premium of 15%. How much cur. rency does he invest? 12. A merchant sells to a broker $5275 uncurrent funds at 5% discount. What does he realize? $5275.00 $5275 x dax ato = 263.75 Discount. $5011.25 Realizes. 13. My agent made a compromise with a debtor owing $3264, at 60%, and his fee was 5%. What did I receive? 5% on 60 = 3%; :: 3264 x Boy = 14. Paid $116.40 commission on the sales of goods, at 11%. What was the amount of sales ? and also the net proceeds ? 100 13 15. A tax collector receives $2430 for his collections, at 21%. What is the amount of taxes collected ? 100 $2430 x 440 x 2430 = 270 x 400. 24 16. I sent my broker $5000 to purchase goods, his charge was 2% on the amount of goods. What amount did he buy? For $102 he bought $100 goods; .. 5000 x 10 % 17. Goods sold on commission at 21%, the consignee received $3755.40. What was the amount of sales ? 158 971 to = 3755:41. 100 18% = 48 971 Cancel and compute. 18. A broker sells 50 tons of hay, proceeds $862.944, brokerage 11%; how much per ton did the owner realize? Ans. $17. 19. Sold flour at 21% commission, invested of the amount of sales in sugar at 11% commission; the balance, after deducting commissions, was $430. What was the flour sold for, and how much was invested in sugar ? The commission on sugar = $x = 1%. 430. 188 = 1 430 x 1200 = 500. 31% on the whole is 14% on 1; the balance is $500, which is 3 the sales of flour; therefore, flour sold for $2000 and $1500 invested in sugar. 20. Sold goods at 4% commission, and invested the proceeds, except my commissions, in other goods at 4% commission. My commissions were $200; what was the amount of sales and also of the investment? Hala x 101 = invested ; 18 = commission. = 200. 86 430 |