of Essex Company's stock, at $27 each, their commission being %; what is Winship's bill? Ans. $108.27. 5. What amount of current money will be given in exchange for $450 of that which is at 5% discount? Ans. $427.50. 6. When gold is at a premium of 25%, what must be paid for $275 of gold? Ans. $343.75. 7. If an auctioneer sells, on a commission of 8%, 14 chairs at $1.25, 1 bedstead for $10, and a miscellaneous lot for $53.79, what sum will be due the person for whom he makes the sale, his commission being deducted? 8. What is the commission on the sale of 200 yards of broadcloth at $4.80 per yard, 6% being paid for selling, and 21% for guaranteeing the sales? Ans. $81.60. NOTE. The seller sometimes guarantees the payment for the goods sold; for this he is paid a premium. 9. What are the net proceeds on the sale of a lot of crockery amounting to $10650, commission being 41%, and 11% being allowed for guaranteeing payment? NOTE. To obtain net proceeds, deduct commission. Ans. $10011. 10. What are the net proceeds from the sale of 1260 barrels flour, at $3.50 per bbl., charges for freight and storage being 40c. per bbl., commission for selling being 2%, and for guaranteeing sales 14% ? 11. What are 50 shares of railroad stock worth, at 4% advance, the par value being $100? $100 X 1.04 × 50 = $5200. Ans. $5200. 12. What would be the value of 15 shares of the above stock. at 7% premium? 13. What would be the cost of 8 shares of the above, at a discount of 35%? 14. What would be the value of 4 shares in the stock of a gas company, originally worth $200, at 3% above par? 15. What would be the value of 12 shares of above stock, at 17% below par? 16. A certain corporation, wishing to increase their capital stock without multiplying their shares, assessed the stockholders 40% on the par value of their stock, which was $500 per share; what was assessed on a person holding 3 shares? 17. What was the par value of the stock per share in the corporation after the assessment was made? 18. If I buy 10 shares of stock, originally worth $100, at 18% above par, and sell it at 7% below par, what do I lose? Ans. $250. 19. What would have been my gain if I had bought the above at 10% discount, and sold it at a premium of 8% ? 20. Bought 75 shares in a savings-bank, par value being $50, at 61% advance, and sold at 31% above par; what did I lose on the lot? 21. The amount of the deposits in the savings-banks of Massachusetts for 1863, was $44,785,438.56; the ordinary dividends were at the rate of 41% of the deposits; what was the total of the dividends? 301. TO FIND THE COMMISSION OR BROKERAGE AND THE SUM INVESTED, WHEN BOTH ARE CONTAINED IN A CERTAIN SUM SENT TO A FACTOR OR BROKER. ILL. EX. I send to my agent at St. Salvador $1224; what part of this sum will remain to invest in sugars, after deducting his commission of 2% on what he lays out? $1224$1.02 $1224-$1200 OPERATION. $1200, sum to invest. Since the commission is 2% of the sum laid out, the agent receives $1.02 for every dollar which he is to lay out. If he receives $1224, he will have as many dollars to lay out as $1.02 is contained times in $1224, which is 1200 times. Hence the Ans. $1200. RULE. To find the sum invested: Divide the amount named by $1 plus the commission on $1; the quotient will be the sum invested. To find the commission or brokerage: Subtract the sum invested from the amount. EXAMPLES. 1. I have sent to a commission merchant in New York $450, of which he is to lay out what he can in butter, after reserving his commission of 2% on the purchase; what is the purchase? Ans. $441.176+. 2. What part of a remittance of $328.25 will remain to be invested after 1% of the investment has been deducted? Ans. $325. 3. How many barrels of flour at $5 each can a factor purchase with a remittance of $2575, after deducting his commission Ans. 500 bbl. of 3% ? 4. How many shares of stock at $100 each can a broker purchase with a remittance of $520, allowing himself a brokerage of 4%? 5. A real estate broker receives $2593.75; what number of acres of land at $1.25 per acre can he purchase with the balance, after allowing himself 33% brokerage on the purchase? 6. Having remitted to my agent in New Orleans $891.75, to be expended for sugars, after reserving his commission of 21%, I received from him 29000 pounds of sugar; what was the cost per pound? 7. I have authorized a broker to employ $292.32 in the purchase of a certain stock for me, allowing him 1% commission; what number of shares originally worth $100 can he purchase, if they are now 72% below par? 8. Wm. H. Ladd sells for Chas. Smith 2500 pounds of butter at 14 cts., and 100 pelts at $1.50; from the proceeds he deducts his commission of 3% and $4 for cartage, &c., and with the balance purchases for Smith, after deducting his commission of 11% on the purchase, a lot of sheeting at 10 cts. per yard; how many yards can he purchase? For Dictation Exercises, see Key. &c. INSURANCE. 302. Insurance is security to indemnify for loss. Property Insurance indemnifies for loss by fire, shipwreck, Life and Health Insurance indemnify for loss of life or health. 303. The persons or company that insure are called under writers. 304. A Policy is the written contract between the insurer and the insured. 305. Premium is a certain per cent. of the sum insured paid to the underwriters for the insurance. 1%. 1. Required the premium for insuring a house for $1600 at 1% of $1600 $16; 1% of $1600 $8, Ans. 2. What is the insurance on $1000 worth of furniture at %, including $1 for policy? = = Ans. $6. 3. Insured of a store valued at $15000 at §%, and paid $1 for policy. What amount is paid? 4. Effected insurance on the ship Susan to Cadiz and back for $10000 at 2%, and on her return cargo, worth $7500, at 11%; what is the amount of insurance, including $1 for policy? Ans. $313.50. 5. A lot of clothing worth $4000 is insured for of its value at 3%; if the goods are damaged by fire to the amount of $500, what will be the net loss to the underwriters, making no account of interest? Ans. $480. NOTE.The underwriters will make good to the insured his actual loss. Their net loss will be $500 minus the premium. 6. What will be the premium for insuring $15500 on a schoolhouse for 10 years at 2%? 7. What would be the loss to the insurance company if the above building should be destroyed by fire, and the insurance be paid in 6 months from the date of the policy? Ans. $15116.84. NOTE. Reckon interest on the premium for 6 months. - 8. Insurance was effected upon of a ship and cargo, valued at $50000, at 17%; what would be the actual loss to the underwriters if the ship and cargo should be totally lost at sea, making no allowance for interest? 9. What would be the actual loss to the owners? Ans. $13203.125. 307. TO FIND FOR WHAT SUM AN INSURANCE POLICY MUST BE TAKEN OUT, TO SECURE A CERTAIN SUM AND COVER THE PREMIUM. ILL. Ex. For what must a policy be taken out to insure $500 on a ship's freight, and cover the premium of 2% ? OPERATION. -.02.98 Since the premium is 2% of the policy, the $500÷.98=$510.204. property ($500) must be 98% of the policy; if $500 is 98%, 1% will be of $500, which is $510.204. of $500, and 100% will be 100 X 8 Ans. $510.204. Hence the RULE. To find for what sum an insurance policy must be taken out, to secure a certain sum and cover the premium: Divide the sum to be secured by 1 minus the rate per cent. of insurance; the quotient will be the amount of the policy. EXAMPLES. 1. What policy will cover $2000 of property and a premium of 3%? Ans $2061.855+. 2. I have loaned $1140 to a friend, to be secured by a policy on his life; for what must a policy be taken to, secure the sun loaned and cover the premium of 5% also? Ans. $1200 3. Having adventured $1800 to Calcutta, what policy should I take out to secure both the adventure and the premium of 6% 4. For what must a policy be taken out to cover a loan of $588 and a premium of 121% upon it? For Dictation Exercises, see Key. |