WRITTEN EXERCISE 1. What is the tax on $6500 at 64 mills on a dollar? 2. The rate of taxation being 11%, how much must a company pay whose property is assessed at $75,000? 3. A town has an assessed valuation of $4,500,000, and it has to raise $24,750 by taxation. What is the rate? 4. The rate of taxation being 71⁄2 mills, how much tax must a man pay on $8500, together with $1 poll tax? 5. A town has an assessed valuation of $720,000, and it wishes to levy a tax of $5400 for highways and schools. What must be the rate? 6. What is the total tax of a man whose property is assessed at $8400, the rate being 1 mill for state purposes, 3 mills for county purposes, mill for the town, and 2 mills for school purposes, together with $1 poll tax? Given the following assessed valuations and tax levies, find the rates of taxation: 8. $2,900,000, $8700. 7. $4,200,000, $16,800. 9. $3,700,000, $20,350. 10. $7,875,000, $23,625. 11. $9,250,000, $41,625. 12. $14,500,000, $87,000. Given the following tax levies and rates of taxation, find the assessed valuation: 13. $13,750, 5 mills. 15. $57,750, 7 mills. 14. $21,000, 6 mills. 16. $73,000, 8 mills. Given the following assessed valuations and rates, find the tax levies: 17. $4,230,000, 4 mills. 19. $7,250,000, 5 mills. 18. $6,350,000, 7 mills. 20. $12,780,000, 61 mills. 522. Tax table. Collectors make out a tax table like this: 4510 4565 4620 4675 4730 4785 4840 4895 8 4400 4455 9 4950 5005 5060 5115 5170 5225 5280 5335 5390 5445 Here the first figure of the number of dollars assessed is given at the left, and the second one at the top. Thus, at 51⁄2 mills on $1, the tax on $100 is $0.55; on $250, $1.371⁄2. 523. Collector's commission. The law allows the collector a commission on the tax collected, usually about 1 1%. 524. Illustrative problem. What must a man pay on $8250, at 5 mills on $1, the collector's commission being 1%? By the table, the tax on $8200 is $45.10 Find the tax at 5 mills, as in § 523: 2. $8750. 1. $6500. 3. $4875. 4. $7675. 7. $24,400. 8. $23,500. 11. $18,875. 12. $45,250. FIRE INSURANCE 525. Insurance. An agreement to compensate any one for some specified loss is called insurance. 526. Policy. The written agreement of an insurance company to pay a certain amount in case of loss is called a policy. The insurance companies are often called underwriters. 527. Face of policy. The amount specified to be paid in case of loss is called the face of the policy. 528. Premium. The cost of insurance is called the premium. The rate of premium is sometimes stated as a certain sum for each $100, and sometimes as a certain rate per cent. Houses are usually insured for three or five years, business property is usually insured for one. 529. Illustrative problem. What is the premium for insuring a store against loss by fire, for $4000 at $1.20 a year? 1. Since the rate is $1.20 on $100, it is $0.012 on $1. 2. 4000 times $0.012 equals $48, the premium. ORAL EXERCISE 1. What is the premium on a $650 policy at 2%? 2. What is the premium on a $3000 policy at 11%? 3. A farmer insured his growing crop of wheat for $800 at 4%. What was the premium? 4. A building which cost $24,000 is insured for § of its cost. What is the face of the policy? 5. A man paid $20 for insuring his house, the rate being 1%. What was the face of the policy? 6. A schoolhouse is insured at 1%, the premium being $50. The face of the policy is § of the value of the building. Required the value. State the premiums on the following policies at the rates State the faces of the policies, given the following pre State the rates, given the following faces of policies and 47. A building worth $8000 is insured for of its value at 1%. What is the premium? WRITTEN EXERCISE 1. At $0.95, what is the premium on a $2500 policy? 2. At $1.10, what is the premium on a $2800 policy? 3. At $1.15, what is the premium on a $3750 policy? 4. A building worth $12,000 is insured for of its value 景 at 2%. What is the premium? 5. If you insure the contents of your store for $6000, what is the premium, at $1.25? 6. The premium for insuring some property at $1.50 is $52.50. What is the face of the policy? 7. A man insured his factory, valued at $135,000, for of its value, at $1.90. What was the premium? 8. A dealer insured his stock of goods, valued at $14,000, for 3 of its value, at $1.65. What was the premium? 9. If a 3-year policy for $1750 costs $27, what is the rate of premium for the 3 years? What is the rate per year? 10. If a 3-year policy for $3000 costs $36, what is the rate of premium for the 3 years? What is the rate per year? 11. A merchant insured his stock for 2 of its value, at 13%. The premium was $131.25. What was the value of the stock? 12. A manufacturer insured his factory for g of its value, at $2. The premium was $210. What was the face of the policy? the value of the factory? 13. A factory worth $33,000 is insured for g of its value, at 2%. In case of total loss how much would the owner lose, including his premium paid? 14. A man insured his library for its full value, $2500, at $1.25. What was the premium? If a fire destroyed of the library, how much could he recover? |