3. $764.75.

PHILADELPHIA, PA., Feb. 4, 1892.

Three months after date, for value received, I promise to pay Francis Damon, or order, Seven Hundred Sixty-four 75 Dollars, at the Girard Bank.

Discounted Mar. 10, 1892, at 6%.

4. $537.45.

10

D. B. BARTON.

ST. LOUIS, MO., May 14, 1892.

Three months after date, for value received, I promise to pay Henry R. Grover, or order, Five Hundred Thirty-seven Dollars, at the First National Bank.

45

Discounted May 25, 1892, at 6%.

DONALD MCNAUGHTON.

5. $850.50.

RICHMOND, VA., Oct. 6, 1891.

Sixty days after date, for value received, I promise to pay William Sanford, or order, Eight Hundred Fifty 50 Dollars, at the Union Bank.

Discounted Nov. 1, 1891, at 6%.

6. $235.68.

SAMUEL J. DUNDSON.

BROOKLYN, N.Y., Jan. 8, 1892.

Four months after date, for value received, I promise to pay C. F. Cramer, or order, Two Hundred Thirty-five 68 Dollars, at the Merchants' Bank.

Discounted Apr. 12, 1892, at 6%.

7. $472.48.

100

HENRY C. PEAKE.

SAN FRANCISCO, CAL., Apr. 2, 1891.

Five months after date, for value received, I promise to pay R. B. Goodrich, or order, Four Hundred Seventy-two 48 Dollars, at the Citizens' Bank.

Discounted May 29, 1891, at 7%.

H. BOYLE THOMPSON.

DENVER, COL., June 24, 1891.

8. $1000. Four months after date, for value received, I promise to pay Mary C. Platt, or order, One Thousand Dollars, at the First National Bank.

Discounted Sept. 10, 1891, at 10%.

9. $1100.

DRAPER S. ANDREWS.

BALTIMORE, MD., July 5, 1891.

Three months after date, I promise to pay G. E. Fillmore, or order, Eleven Hundred Dollars, at the Mechanics' Bank, with interest at 6%. Value received.

Discounted Aug. 5, 1891, at 6%.

J. T. HOSMER.

If a note bears interest, find the discount on the amount of the note at its maturity.

10. $135,5%

50 100

CLEVELAND, O., May 3, 1891.

Sixty days after date, I promise to pay F. H. Stowell, or order, One Hundred Thirty-five 50 Dollars, with interest at 6%, for value received.

Discounted May 20, 1891, at 6%.

11. $637.85.

A. L. MUNSON.

DETROIT, MICH., Feb. 16, 1891.

Four months after date, for value received, I promise to pay to the order of C. G. Lamson, Six Hundred Thirtyseven Dollars, with interest at 7%.

85

Discounted Apr. 4, 1891, at 7%.

12. $1200.

SPENCER C. GRANGER.

GALVESTON, TEX., Aug. 3, 1891.

Ninety days after date, I promise to pay Peter R. Goodwin, or order, Twelve Hundred Dollars, for value received, at the First National Bank.

Discounted Sept. 2, 1891, at 8%.

ROBERT C. CROPSEY.

380. To find the face of a note when the proceeds, time, and rate are given.

1. What is the bank discount of a note for $1, due in 1 mo. 27 da. at 6%? What are the proceeds?

2. Since $.99 is the proceeds of $1 when discounted at a bank for 1 mo. 27 da. at 6%, of what sum is $1.98 the proceeds for the same time and rate? $2.97 ? $4.95?

$3.96 ?

3. Of what sum is $1.97 the proceeds when a note is discounted at a bank for 2 mo. 27 da. ? $2.955?

WRITTEN EXERCISES.

381. 1. The proceeds of a note discounted at a bank for 2 mo. 12 da. at 7% were $1182.50. What was the face of the note?

RULE.

SOLUTION.

$1$.0145 = $.98541, Proceeds of $1.

$1182.50 $.98541 $1200, Face of the note.

=

· Divide the proceeds by the proceeds of $1 at the given rate for 3 days more than the specified time.

2. The proceeds of a note discounted at a bank for 3 mo. at 6% were $590.70. What was its face?

3. What must be the face of a note at 60 da., the proceeds of which, when discounted at a bank at 6%, are $336.43 ?

4. The proceeds of a note discounted at a bank for 1 mo. 18 da. at 5% were $1869.35. What was its face?

5. A gentleman wishes to raise $1000 by having his note discounted at a bank at 6% for 2 mo. What must be the face of the note ?

6. For what sum must a note be made so that the proceeds, after it has been discounted at a bank for 2 mo. 17 da. at 7%, may be $895?

STOCKS AND BONDS.

382. 1. Into how many shares of $100 each can the capital stock of a company amounting to $100,000 be divided, at $100 per share?

Shares will be regarded as $100 each unless otherwise specified.

2. How much of the capital does a man own who has 50 shares? 75 shares? 100 shares?

3. How much stock is represented by a certificate entitling the holder to 50 shares? To 100 shares?

4. What is the market value of 20 shares of stock when it is sold at the original or par value?

5. What is the market value of 20 shares of stock when it is sold at 5% above the original or par value?

6. What is the market value of 20 shares of stock when it is sold at 5% below the original or par value?

7. What will be the cost of a share of stock at 5% above par value, if I pay a stockbroker 1% of the par value of the stock for purchasing it?

8. What will be the cost of a share of stock at 5% below par value, if I pay 1% for purchasing it?

9. What is the value of 10 shares of bank stock at 90% of its par value?

10. What will 4 shares of stock cost at 5% above the par value, if % of the par value is paid to the broker for purchasing it?

11. A company with a capital stock of $100,000 gained $10,000 above its expenses. What % of the capital stock was the gain, and if the gain was divided among the stockholders, what % of dividend did each receive?

12. If the gain or dividend upon the capital stock is 10%, when money is loaned at 5%, would the stock sell above or below par?

13. If the dividend was only 1% of the capital stock, how would the stock sell?

14. If a company whose capital stock is $100,000 loses $10,000, what % of the capital stock is the deficiency or loss?

15. If the loss must be made good by the stockholders, how much must a man pay who owns 10 shares of the stock, or what will be his assessment?

16. What will be the annual income of a written obligation called a bond for $10,000, if it pays 10% interest annually?

383. When a large sum of money is to be raised for the purpose of carrying on some enterprise, usually a number of people contribute a portion of the sum or capital stock, and thus form a Company.

384. As soon as the money is subscribed or raised, a Charter, or legal document, which defines the powers and limitations of the company, is obtained.

One of the special advantages of a charter is that it commonly limits each stockholder's liability to the amount he has contributed, whereas as a member of an unincorporated company or a firm, each person is liable for all the debts of the company.

385. Each person receives a Certificate which shows what amount he has contributed. This certificate usually specifies the number of shares of stock to which the person is entitled, and the original value of each share.

386. The value of the shares of stock named in the certificate is called the Par Value.