PROBLEM II. In a sale of goods for $100, at 1% commission, the owner will realize $99; that is, of the amount of sale. When stocks, bonds, drafts, or currency, are purchased at a discount of 2%, the cost of $100 worth will be $98; that is, 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, 18% 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: and Eng. £ × 40 × 188 = $ U. S., $ U. S. X a × 1% = £ 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? $57641, 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 × 25 95 2000 × 18 = $4750 2080 980 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 10% 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 $$♠♠ X xx = $15. 2. What is the cost of a draft for $1000 at a premium of 1%? 5 1001 201 $1000 × 3. What is the face of a draft at 1% premium, costing $1005 ? 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 × 98 = $4238.50, owner realized. 5. A merchant sells to a broker $3275 uncurrent funds at 5% discount; what does he realize? 6. An architect charges 11% for plans and specifications, and 24% 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 × 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? 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 × 1 × = 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 × 5 = 14. Paid $116.40 commission on the sales of goods, at 11%. What was the amount of sales? and also the net proceeds? 116.40 x 100 = 116.40 × 20o 38.80 × 200. 15. A tax collector receives $2430 for his collections, at 21%. What is the amount of taxes collected? 100 $2430 × = 480 × 2430 = 270 × 400. 21 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 × 18% = 17. Goods sold on commission at 21%, the consignee received $3755.40. What was the amount of sales? 159 ANALYSIS. = 188 100 48 = 18. A broker sells 50 tons of hay, proceeds $862.944, brokerage 14%; 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 13% 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 = 4 × 1 The whole commission on sugar and flour = 31%. = 1%. 31% on the whole is 14% on ; the balance is $500, which is 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? |