4. A married man, who has two children, whose income is $4800 per year. 5. A married man, who has one child, whose income is $8000 per year? EXERCISE 45 Miscellaneous Review 1. Give the formula for the area of: a. a rectangle ; b. a triangle; d. a trapezoid; e. a circle. 2. a. The side of a square is 8 in. b. The diameter of a circle is 8 in. 3. Multiply 3.1416: a. by 25; b. 4. Find of (3+5). c. a parallelogram; What is its area? by 9; c. by 50. 5. Find -+14. 6. If T=3.2aw, find a when T=95.2 and w=7. 7. A man's annual income from his work is $1750. How much money would have to be invested at 5% to produce that income annually? 8. A man bought a barrel of gasoline containing 54.5 gal. at 39.8¢ per gallon, less a discount of 2% for cash. What was the cash price of the barrel of gasoline? 9. a. Consulting the table of rates on page 64, determine the premium for a three-year fire insurance policy for $6500 on a three-story frame building. b. What is the agent's commission at 25% of the premium? 10. What is the interest at 6% on $1 for: a. 1 mo.? b. 1 yr.? e. 1 yr. 2 mo. 3 da.? c. 1 wk.? d. 1 da.? 11. Find the semi-annual interest on $350 worth of Liberty Bonds at 43%. 12. A grocer bought eggs at 21¢ per dozen. At what price must he sell them to make a profit of 30% of the cost? 13. A grain dealer bought oats for 42¢ per bushel and sold them for 50¢. a. What per cent of the cost was his profit? b. What per cent of the selling price was his profit? 14. Determine the cost of 215 yd. of carpet at $9.50 per yard, less 20% and 5%. 15. How much is at when t is 15? 40? 21? 16. Multiply 2.5G by 4; by 7; by . 17. Find the unknown number in each of the follow 20. Find the tax rate in mills on a dollar if the property taxes are $36,450 and the value of the property of the community is $1,853,500. VII. BANKS AND BANKING 51. Uses of banks. Banks furnish a safe place to deposit money; banks furnish convenient ways of transferring money from one person to another; banks lend money. A depositor of a bank is a person who places money in the bank. SAVINGS ACCOUNTS 52. In a savings bank, or in the savings department of a general bank, money may be deposited in small amounts. Interest is paid on such deposits. The interest is computed quarterly (once every three months) or semi-annually (once every six months). The time between interest payment dates is called an interest period. The interest is computed on the lowest balance of the depositor during the interest period which ends on the interest payment date; also interest is not computed on parts of a dollar. Thus, a certain bank pays interest on the first of January, April, July, and October, at the rate of 4% per year. A boy had $78.25 on deposit on Oct. 1; he withdrew $10 on Oct. 30, reducing his balance to $68.25; later, he deposited enough to make his balance $105.15 by Jan. 1. When his interest was computed on Jan. 1, they used as the principal his lowest balance, $68.25; they gave him 1% of $68 or 68¢ interest, since they do not reckon interest on the 25¢. They used 1% as the rate because the interest for 3 mo. at the rate of 4% for a year is of 4%, or 1%. If the interest is not withdrawn when it becomes payable, it is added to the principal, and draws interest like any other deposit. In this way savings banks pay compound interest. 'The following is a sample record of a depositor in a savings bank. Interest at the rate of 4% for a year is paid on the first of January, April, July, and October. This record shows that Mr. Halsey opened his account on Feb. 5, 1921, with a deposit of $15, and deposited $100 on March 20. On April 1st, he did not receive any interest, since none of his money had been on deposit during all the time between January 1st and April 1st. Between April 1st and July 1st, he increased his balance to $200.75. On July 1st, he received $1.15, the interest for one quarter on $115, which was the smallest balance he had during the time from April 1st to July 1st. He withdrew $40 on Aug. 20, making his lowest balance for this quarter $161.90. He increased his balance to $202.40 by October 1st. He received only $1.61 interest, however, the interest on $161 for the quarter, since his lowest cash balance during the quarter was $161.90. The 90¢ was ignored when computing this last interest. EXERCISE 46 Draw up an account like that above for each of the following examples. 1. The East Side Savings Bank pays interest at the rate of 4% per year computed on January 1 and July 1. Clara Williams had $35.25 on deposit on Jan. 1, 1920. She deposited $25 on the 25th of every month, did not make any withdrawals, and allowed her interest to remain in the bank. How much did she have to her credit on Jan. 2, 1921? 2. Charles Ames opened a savings account on Jan. 2, 1921, by depositing a Christmas present of $10. On the 2nd of each month he deposited $20. The bank paid 4% interest compounded on the 1st of January, April, July, and October. Make out the record of the deposits and interest of Charles Ames up to and including Jan. 2, 1922. 3. Henry Addison opened a savings account on Jan. 2, 1921, by depositing $15 in a bank which paid interest at 4%, payable on the 1st of January, April, July, and October. On the 10th and 25th of every month, he deposited $15 out of his monthly wages. Make out his record up to and including July 2, 1921. 4. Kendall Ware kept his savings in a similar bank. He had a balance of $28.50 on January 2, after interest had been added. He deposited on Jan. 5, $25; Feb. 15, $10.50; Mar. 18, $13.75; Apr. 12, $15.25; May 7, $11.85; June 20, $7.50; July 16, $14.35; Aug. 24, $17.50; Sept. 11, $22; Oct. 19, $10; Nov. 27, $15. He withdrew $40 on Dec. 18. What was his balance on Jan. 2, 1921? 5. George Edwards kept his money in the Peoples Savings Bank, which pays 4% interest computed on the 1st of January, April, July, and October. His deposits are marked +, and his withdrawals. Balance his account on July 2, 1921. |