The Premium is a certain percentage on the amount of risk. There are different modes of insurance, but all are dependent on the principle of percentage. EXAMPLES. 1. What is the premium on property on which a risk of $6000 is taken, at 1% for one year? $6000 x 1 을 VO = $30.00. 100 2. What is the premium on a risk of $5000, on which a premium note is given for 5% of the risk, and the interest on the note is 4% ? Note = 5000 X Tho = $250. Interest on note = 250 X 100 = $10 = Premium. If the policy cost $1.00, the expense for the first year is $11.00. REM.--Sometimes the premium is made to cover both property and premium, in which case the risk is equal to the sum of the value on property and the premium. 3. What amt. must I have insured at 1% prem., to cover property and prem., when the risk on the property is $9950? As the premium is % = 1:8 = Property. = 9950. = 50. = the whole risk = 10000. Interest is an allowance for the use of money. It is reckoned by percentage; thus, 5%, 6%, etc., meaning for a year, when not otherwise expressed; for any other time it is as the ratio of the time; thus, the interest of $100 at 6% is $6 for a year, for two years $12, and for six months $3. PROBLEMS. 1. Find the interest of $150, at 6%, for 1 year. $150 X Too = $9. For 8 months. $1.50 x ma x H = 1.50 X na = $10.50. COR.–At 6%, the rate per cent. for any number of months is the number of months; thus, for 8 months it is 4%, for 6 months it is 3%, and for 14 months 7%. 2. Find the interest of $150, at 6%, for 129 days ? $150 XT X 488 = $150 x = $3.225. 60 Cor.—The interest of a sum of money for any number of days is equal to the product of the sum of money and the number of days divided by 6000; or, if the number of dollars be multiplied by the number of days and this product divided by 6, the quotient is the interest in mills; point off three decimals and it is reduced to dollars, cents, and mills. If the rate of interest is 7%, add t; if 8%, add }; if 9%, add t; if 5%, deduct t; if 4%, deduct }; if 3%, take 1. The rate for 200 months is 100%; that is, the interest is equal to the principal. 200 months of $100 is $100. $1. $.014. $.034 EXAMPLES. 1. Find the interest of $100 for 1 year, at 6%, 1%, 8%, 9%, 10%, 5%, 4%, 3%, and 2%. For 1 year at 6% it is $6.00 1.00 7% add 1 $7.00 8% add , $6 + $2 = 8.00 6 9% add 1, $6 + $3 9.00 10% to; .. 4002 10.00 “ 5% deduct 1, $6 - $1 = 5.00 6 4% deduct 5, $6 4.00 “ 3% take t; f= 3.00 “ 2% take $; f= 2.00 2. Find the interest of $625 at 6% for 8 months. Rate for 8 mo. is Tio or 4%. 625 X 10 = $25.00. 43 100 625 X Ti = $25.00. 625 X X sto = 2.081 $27.081 3. What is the interest of $845 at 6% for 1 year 6 months and 24 days? 93 9 100 100 = 180 Or reduce to days 1 year = 360 24 564 47 24 64 = 845 x 76% = same as above. 500 4. What is the interest of $845 at 7% for 1 year 6 months and 24 days ? at 8% ? 5%? 4%? At 6% = 79.43 $79.43 Add = 13.23% At 6% At 6% At 6% = $79.43 Deduct 13.23% Deduct f= 26.47% At 5% 66.19At 4% = $52.95} 5. What is the interest of $648 at 6% for 3 years 5 months and 18 days? 3 years = 1080 days. 5 months = 150 days. 18 days. 1248 days. REM.—When the denominator is a divisor and is reduced to 10, 100, 1000, etc., it is best not to cancel further, as it is so convenient in use. 2 years 6. What is the interest of $540 from Oct. 10th, 1872, to Aug. 9th, 1875, at 6%? = 720 days. yrs. mos. daye. 9 months = 270 days. 1875 8 9 29 days. 1872 10 10 1019 2 9 29 9 $$40 x HH = $91.71 100 7. What is the interest of $741 at 1% for 1 year 8 months and 20 days ? 20 months and 20 days at 6%? = 360 days. 8 months = 240 days. 20 days. 620 days. 1 year |