$500.

SAN JOSE, Feb. 1, 1885.

3. Three months after date, I promise to pay to the order of C. H. ALLEN, five hundred dollars, with interest at 11% a mouth. Value received. JOHN SWETT. Indorsements: May 1, 1885, $40; Nov. 13, 1885, $20; May 1, 1886, $75. What was due Sept. 16, 1886?

$475

RACINE, May 1, 1882.

4. Nine months after date, I promise to pay A. R. SPRAGUE, or order, four hundred seventy-five and dollars, with 7% interest. Value received. B. B. NORTHRUP.

The following payments were made on this note:

Dec. 25, 1882, $50.

Sept. 1, 1883, $25.50.

July 10, 1883, $15.75.

What was due April 13, 1885?

June 16, 1884, $104.

5. Find what would be due on the same note Oct. 10, 1884, at 8%.

6. D. W. McWilliams holds a bond against Jacob Gosler, dated June 20, 1882, for $4800, on interest at 6%. Indorsements: May 5, 1883, $1200; Aug. 14, 1884, $950; May 12, 1885, $2000. What will be due Nov. 24, 1885 ?

7. A note for $900, dated March 10, 1881, payable on demand, with interest, at 61%, bears the following indorsements: July 3, $175; Oct. 21, $284.50; Jan. 6, 1882, $310. What is due May 16, 1882?

8. What would be due upon this, if settled Nov. 15, 1883, at 3% a mo. ?

9. A mortgage for $3840, dated Rochester, April 1, 1879, bearing int. at 5%, has the following payments indorsed upon it: Jan. 1, 1880, $550; Aug. 7, 1880, $1000; Feb. 10, 1881, $790; July 13, 1881, $264.50. What amount will be due April 1, 1882 ?

324. The following method of computation is often used by merchants in the settlement of notes and of interest accounts running a year or less; hence called the

MERCANTILE RULE.

1. Find the amount of the note or debt from its date to the time of settlement.

2. Find the amount of each payment from its date to the time of settlement.

3. Subtract the sum of the amounts of payments from the amount of the note or debt.

An accurate application of this rule requires that the time should be reduced to days, allowing 365 da. to the year.

1. On a note for $600 at 7%, dated Feb. 15, 1884, were the following indorsements: March 25, 1884, $150; June 1, 1884, $75; Oct. 10, 1884, $100. What was due Dec. 31, 1884?

2. A note for $950, dated Jan. 25, 1883, payable in 9 mo., at 7% int., had the following indorsements: Mar. 2, 1883, $225; May 5, 1883, $174.19; June 29, 1883, $187.50; Aug. 1, 1883, $79.15. Find the balance due at the time of its maturity?

3. Payments were made on a debt of $1750, due April 5, 1882, as follows: May 10, 1882, $190; July 1, 1882, $230; Aug. 5, 1882, $645; Oct. 1, 1882, $372. What was due Dec. 31, 1882, interest at 6%?

For methods of computation in the States of Vermont, New Hampshire, and Connecticut, see "Addenda."

STOCKS AND

INVESTMENTS.

325. A corporation is a body of individuals, or a company, authorized by law to transact business as one person.

326. Stock is the capital or money subscribed by a corporation to carry on its business.

327. A share is one of the equal parts into which the stock of a corporation is divided.

The value of a share varies in different companies. When not otherwise stated, $100 will be understood to be the value.

328. A certificate of stock is a paper issued by a corporation specifying the number of shares to which the holder is entitled, and the original value of each.

329. The par value of stock is the sum for which the scrip or certificate was issued.

330. The market value of stock is the sum for which it can be sold.

Stock is at par when its market value is 100% ; above par, or at a premium, when its market value is above 100%; and below par, or at a discount, when its market value is below 100%. When stock is at par, it is quoted at 100; when it is 5% above par, at 105; when it is 5% below par, at 95.

331. A stock broker is one who buys and sells stocks for a commission, called brokerage.

332. Premium, discount, and brokerage are each a percentage computed upon the par value of the stock.

333. A dividend is a sum paid to the stockholders from the profits of the business.

Dividends and assessments are a percentage computed upon the par value of the stock as the base.

334. Net earnings are the moneys left from the profits of a business after paying expenses, losses, and the interest upon the bonds.

335. A bond is a written instrument securing the payment of a sum of money at or before a specified time.

The principal bonds dealt in by brokers are Government, State, City, and Railroad bonds.

336. A coupon is a certificate of interest attached to a bond, to be cut off and presented for payment when the interest is due.

Bonds are quoted in commercial language by the rate of interest which they bear. Thus, U. S. bonds bearing 6% int. are quoted as U.S. 6's; U. S. bonds bearing 44% int., payable in 1891, are quoted as U. S. 4's, '91.

Bonds issued by States, cities, etc., are quoted in a similar manner. Thus, S. C. 6's are bonds bearing 6% interest, issued by the State of South Carolina; so, also, Mo. 7's, N. Y. 5's, etc.

337. The corresponding terms in stocks are as follows:

1. The par value is the base.

2. The rate % of premium or discount is the rate.

3. The premium or discount is the percentage.

4. The market value is the amount or difference.

WRITTEN

EXERCISES.

338. Find the cost

1. Of 250 shares of Lake Shore R. R. stock, the market value of which is 104, brokerage 1%.

2. (Market value of 1 share + brokerage) x No. shares cost.

2. Find the cost of 250 shares of Western Union Telegraph stock, market value 97, brokerage %?

3. A broker bought for me 15 one-thousand-dollar U. S. 5-20 bonds, at 1121, brokerage 1%. What was their cost?

4. Bought 120 shares of Pacific R. R. stock, at a discount of 21%, and sold the same at an advance of 12%. What was my gain?

339. Find the number of shares

1. Of bank stock at 105, that can be bought for $25260, including brokerage at 1%?

SOLUTION.-(105% +1%) of $100 $1051, cost of 1 share. $25260 $105 = 240, No. of shares.

FORMULA: No. of shares = investment ÷ cost of 1 share.

. 2. How many shares of telegraph stock can be bought for $12240, at 10% discount? At 20% premium?

3. How many shares of Mo. 6's, at 974, brokerage 1%, will $21560 purchase?

4. How many shares of the Bank of Commerce, at 110, can be bought for $22567.50, brokerage %?

340. Find the amount of investment

1. In U. S. 5's of '81, at 111, so as to realize therefrom an annual income of $2500?

SOLUTION.-$2500÷$5, income on 1 share = 500, No. of shares. $111, price of 1 share × 500

FORMULAS:

{

= $55500, investment.

1. Given income inc. of 1 share=No. shares. 2. Cost of 1 share × No. shares = investment. 2. What sum invested in Tennessee 6's at 85, will yield an annual income of $1800?

3. What sum invested in any stock at 105, which pays 5% semi-annual dividends, will secure an annual income of $2000?