INSURANCE. 269. Insurance is security against loss. The policy is the written contract between the insurer and the sured. The premium is the sum paid for the insurance. 270. The corresponding terms are as follows: 1. The amount insured is the base. 2. The rate % of premium is the rate. 3. The premium is the percentage. FORMULA: Amount insured rate = premium. 2. A house and furniture valued at $9700, at %. 3. Dry goods valued at $3840, at 3%. 4. A cargo of 5000 bu. of grain valued at $1.20 a bushel, 21% on of its value. 5. A gentleman has a house insured for $8000, and the f niture for $4000, at 23 per cent.; what is the premium ? 272. Find the rate of insurance, 1. If $48.75 is paid for an insurance of $3250. SOLUTION.-$48.75 ÷ $3250 = .015, or 14%, the rate. (244.) FORMULA: Premium sum insured rate. 2. If $172.20 is paid for an insurance of $9840? 3. If $38.25 is paid for an insurance of $6120 ? 4. A house valued at $6800 was insured for its value 273. Find the amount of insurance, 1. If it cost $38.25 to insure a certain house and furniture, 2. If it cost $93.50 to insure a store for one-half of its value, at 13%, what is the store worth? 3. Paid $245 insurance at 48% on a shipment of pork, to cover of its value. What was its total value? 4. A merchant paid $1500 premium on a cargo of cotton from New York to Belgium, which was 24% on its valuation. What was the amount insured? 5. A steam-mill was insured at 41%, to cover of its value. The premium paid was $526.50: what was the value of the mill? 6. A person insured his house for of its value at 40 cents per $100, paying a premium of $73.50. What was the value of the house? TAXES. 274. A tax is a sum of money assessed upon persons, property, or incomes, for public purposes. A property tax is a tax on personal property and real estate. A poll tax is a tax on the person. 275. An assessor is an officer appointed to estimate the taxable value of property, prepare the assessment rolls, and apportion the taxes. 276. The corresponding terms are as follows: 1 The valuation of the property is the base. 2. The tax rate, or tax on $1, is the rate. 8 The sum to be raised is the percentage. 27. 1. For the purpose of building a bridge, a tax of $2628 was levied upon the taxable property of a town, valued at $584000. What was the tax rate? SOLUTION.—$2628÷$584000=.0041, or 11⁄2 mills, the tax rate (244) FORMULA: Sum to be raised valuation = rate of tax. 2. At what rate must property, valued at $1475000, be assessed to raise a tax of $7743.75? What will be the tax upon a farm assessed at $6840 ? The amount of poll tax, if any, must first be subtracted from the whole sum to be raised, and the rate of tax found on the remainder. 3. In a certain town a tax of $5000 is to be assessed. There are 500 polls, each assessed $.75, and the valuation of the taxable property is $370000. What is the rate of property tax, and what is A's tax, whose property is valued at $7500, and who pays for 2 polls? EXPLANATION.-The sum to be raised is $5000 less 500 polls at $.75, equal to $375; $5000-$375 $4625, sum to be raised; $4625÷$370000 = = .0125, the tax rate; A's tax is $7500 x .0125+$1.50 = $95.25. 4. What is B's tax, who is assessed for $8530, and 3 polls? 5. What is C's tax, who is assessed for $987, and 1 poll? 6. In a certain district, a school house is to be built at a cost of $18527. What amount must be assessed to cover this and the collector's fees at 3%? 7. What sum must be assessed to raise a net amount of $11123, and pay the cost of collecting at 2%? DUTIES OR CUSTOMS. 278. Duties or customs are taxes levied upon imported goods for revenue purposes. A manifest is a detailed statement, or invoice of a ship's cargo. showing the items, quantity, quality, cost, where shipped, and other details. 279. Duties are either ad valorem or specific. 280. An ad valorem duty is a certain per cent. assessed on the cost of goods in the country from which they are brought. 281. A specific duty is a fixed sum imposed on articles according to their weight or measure, without regard to their value. 282. An Appraiser is one who examines imported merchandise, and fixes the dutiable value and the rate of duty of the same. Before estimating specific duties, certain deductions or allowances are made, called tare, leakage, breakage, etc. Leakage is an allowance for waste of liquids in casks. In the U. S. Custom Houses, the long ton of 2240 lb. is invariably used. In weights, less than lb. is not regarded, and more than lb. is taken as 1 pound. 283. The corresponding terms of ad valorem duties and percentage are the following: 1. The net value or quantity is the base. 2. The rate % of duty is the rate. 3. The duty is the percentage. 284. 1. What is the specific duty on 84 bags of coffee, gross weight 136 lb. each, tare 3%, at 3 cents a pound? SOLUTION. 136 lb. × 84 = 11424 lb., gross weight; 11424 lb. x .03 = 342.72, tare; 11424 lb. 342.72 lb. = 11081.28 lb., net weight; $.035 x 11081.28 $387.84, duty. FORMULA: Rate x net quantity = specific duty. Find the duty 2. On 50 hhd. of sugar, each containing 500 lb., at 1 cts. per lb., tare 56 lb. per hhd. 3. On 50 bbl. of sperm oil, each containing originally 31 gal., duty 10 cts. per gal., leakage 2%. 4. On 72 boxes of sperm candles, each weighing 1 cwt., duty 24 cts. per lb., tare 51%. 5. On 120 gross London ale, duty $.60 a dozen, breakage 21%. 6. Imported from Geneva 25 watches invoiced at $125 each, and 15 clocks, at $37.50. What was the duty, the rate being on clocks 25%, and on watches, 35% ad valorem ? FORMULA: Net invoice cost × rate = ad val. duty. Find the duty 7. On 175 chests of tea, each 65 lb., invoiced at $.46 pound, duty 28% ad valorem. 8. On an invoice of French lace, valued at $625, an allowance of 12% being made at the custom-house for damage received since shipped, duty 24%. 9. On 350 boxes of cigars, each containing 100 cigars, invoiced at $7.50 per box; weight, 12 lb. per 1000; duty, $2.50 per lb., and 25% ad valorem. |