SECTION XLI. DISCOUNT. THE object of Discount is to show us what allowance should be made, when any sum of money is paid before it becomes due. The present worth of any sum is the principal that must be put at interest to amount to that sum in the given time. That is, $100 is the present worth of $106 due one year hence; because $100 at 6 per cent. will amount to $106, and $6 is the discount. 1. What is the present worth of $ 12.72, due one year hence? As $100 will amount to $106 in one year at 6 per cent., is evident, that, if 18% of any sum be taken, it will be its present worth for one year, and that 16 will be the discount. And, as $1 is the present worth of $1.06 due one year hence, it is evident that the present worth of $12.72 must be equal to the number of times $ 12.72 will contain $1.06. RULE. ·Divide the given sum by the amount of $1 for the given rate and time, and the quotient will be the present worth. If the present worth be subtracted from the given sum, the remainder will be the discount. 2. What is the present worth of $117.60, due one year hence, at 12 per cent.? Ans. $105.00. 3. What is the discount of $802.50, at 7 per cent., due one year hence ? Ans. $52.50. 4. What is the present worth of $769.60, due 3 years and 5 months hence ? Ans. $638.67,2 24 5. What is the present worth of $986.40, due 7 years 9 months and 20 days hence? Ans. $671.78,251. 6. How much grain must be sent to the miller that a bushel of meal may be returned, the miller taking part for toll? Ans. 34 quarts. 7. What is the months hence, at 7 present worth of $678.75, due 3 years 7 8. I have given my note for $1000, to be paid Dec. 18, 1835. What is the note worth June 7, 1834 ? Ans. $915.89 461 6551 9. James has a note against Samuel for $715.50, dated August 17, 1834, which becomes due January 11, 1835. What ready money will pay the note Sept. 25, 1834 ? Ans. $703.07,8+. 10. A has B's note, which becomes due Nov. 25, 1835, for $914.75. What is this note worth Jan. 1, 1835? Ans. $867.88,4+. 11. A merchant has given two notes; the first for $ 79.87, to be paid Jan. 21, 1836; the second for $87.75, to be paid Dec. 17, 1836. What ready money will discharge both notes Feb. 10, 1835 ? Ans. $154.54,4+. 12. It being now Oct. 14, 1833, and A owing me $ 1728, to be paid Dec. 17, 1837, what ought I now to receive as an equivalent ? Ans. 1381.84,750 13. Bought cloth in Boston at $5.00 per yard. What must be my "asking price," in order that I may fall on it 10 per cent. and still make 10 per cent. on my purchase? Ans. $6.11. 14. James Ober owes Samuel Hall as follows: $365.87, to be paid Dec. 19, 1835; $161.15, to be paid July 16, 1836; $112.50, to be paid June 23, 1834; $96.81, to be paid April 19, 1838. What should he receive as an equivalent, Jan. 1, Ans. $653.40+. 1834 ? SECTION XLII. PER CENTAGE. THIS term is used to express so much by the hundred. It is derived from two Latin words, per and centum, and means by the hundred. It is not only applied to money, but to any commodity. The process of operation is similar to Interest. EXAMPLES. 1. Received a legacy of $1728. I gave 10 per cent. of it to a benevolent society. How much had I remaining? Ans. $1555.20. 2. Bought a horse for $120, and sold him at 6 per cent. advance. What did I gain? Ans. $7.20. 3. Sent 1728 barrels of flour to Liverpool, but in a storm 25 per cent. of them were thrown overboard; how many remained? Ans. 1296 barrels. 4. A certain colonel, whose regiment consisted of 900 men, lost 8 per cent. of them in battle, and 50 per cent. of the remainder by sickness. How many had he remaining? Ans. 414 men. 5. A merchant, having $1728 in the Union Bank, wishes to withdraw 15 per cent.; how much will remain ? Ans. $1468.80. 6. A gentleman, who had an estate of $25,000, gave in his will, to his wife, 40 per cent. of his property, and to his son Samuel, 30 per cent. of the remainder. The residue he divided equally between his daughters, Marcia, Isabella, and Clara, after having deducted $60 as a present to his clergyman. What did each receive? Ans. Wife, $10,000; son, $ 4,500; daughters, $ 3,480 each. 7. What is 15 per cent. on 500 bushels? Ans. 75 bushels. 8. What is 20 per cent. on 75cwt. ? 9. What is 30 per cent. on 150 tons ? 10. What is 75 per cent. on $500 ? 11. What is 95 per cent. on 700 chaldrons ? Ans. 15cwt. Ans. 45 tons. Ans. $375. Ans. 665 chaldrons. 12. What is 2 per cent. on 40 miles ? Ans. .8 miles. Ans. $990. Ans. 48bbl. Ans. 60 hogsheads. Ans. 15.12lb. SECTION XLIII. COMMISSION AND BROKERAGE. COMMISSION AND BROKERAGE are compensations made to factors, brokers, and other agents, for their services, either for buying or selling goods. NOTE. A factor is an agent, employed by merchants residing in other places to buy and sell, and to transact business on their account. ker is employed by merchants to transact business. RULE. count. A bro The method of operation is the same as in Interest and Dis EXAMPLES. 1. My agent in New Orleans has purchased cotton, on my account, to the amount of $18,768; what is his commission, at 1 per cent.? Ans. $328.44. amount of $896, Ans. $17.92. 2. If a broker sells goods for me to the what is his commission, at 2 per cent. ? 3. My factor in London writes that he has purchased for me to the amount of 395£. 15s. 5d.; what is his commission, at 21 Ans. 8. 18s. 165d. per cent. ? 4. A factor receives $1976, which he is to lay out for goods; having deducted his commission of 4 per cent. how much will remain to be laid out? Ans. $1900. NOTE. As his commission is to be taken out of the sum remitted he will not receive 4 dollars on every 100, but 4 on every 104; that is, he will receive 104. 5. What is a broker's commission for purchasing goods to the amount of $7658.75, at 1 per cent? Ans. $114.881. 6. My factor at New Orleans advises me that he has purchased on my account 37 bales of cotton, at $107.75 per bale; what is his commission, at per cent.? Ans. $14.951. 7. I have engaged a broker to purchase for me 12 shares in the Boston and Maine Railroad, at $112.25 per share; what is his commission, at per cent.? Ans. $3.36. 8. My agent, S. Cloon, at Cincinnati, advises me that he has purchased on my account a cargo of pork, consisting of 700 barrels, at $12.25 per barrel; what is his commission, at 1 per cent.? Ans. $150.064. 9. Sent to my agent, John Crowell, at Rochester, N. Y, $8960, to purchase a quantity of flour; his commissions are 2 per cent. on the purchase, which he is to deduct from the money sent him; what is his commission ? Ans. $175.6837 10. What is a broker's commission on the sale of 700 barrels of flour, at $5.75 per barrel, at 12 per cent.? Ans. $70.433. 11. What is the commission on the sale of 173cwt. of sugar, at $8.95 per cwt., at 17 per cent. ? Ans. $29.03. 12. My agent in London has purchased goods for me to the value of 879 £. 12s. 9d; what is his commission, at 33 per cent.? Ans. 29. 13s. 95d. 13. Sent a cargo of flour to Liverpool, which my factor sold and for 987£. 18s. 6d. He invested this sum in broadcloths, at 1£. 3s. 8d. per yard. His commission for selling the flour is 24 per cent., and for purchasing the broadcloth 17 per cent., he is to receive his commissions, for selling and buying, out of the proceeds of the flour. Required the number of yards of broadcloth that I should receive. Ans. 8013574yd. 14. I have remitted to my correspondent a certain sum of money, which he is to lay out for me in iron, and having reserved to himself 21 per cent. on the purchase, which amounted to $90, he buys for me the iron, at $95 per ton. Required the sum remitted, and the quantity of iron purchased. S Sum remitted, $3690. Ans. {Iron purchased, 37T. 17cwt. 3qr. 16 lb. SECTION XLIV. STOCKS. STOCKS is a general name used for funds established by government, or individuals, in their corporate capacity, the value of which is often variable. When stocks will bring more in the market than their original cost, their value is said to be above par, and when, from any circumstance, their value is less than the original cost, they are said to be below par. The method for computation is the same as in Interest. EXAMPLES. = 1. What is the value of $24360 of the National Bank stock, at 135 per cent.? $24360 × 1.35 $32886 Ans. 2. Sold 15 shares, $100 each, of the Boston Bank, at 13 per cent. advance. To what did they amount? Ans. $1695. 15 3. What must I give for 12 shares in the Haverhill Bank, at per cent. advance, shares being $100 each? Ans. $1380. 4. What is the purchase of 1058£. 12s. bank stock, at 115 per cent.? Ans. 1225£. 6s. 72d. 5. Sold 30 shares, $100 each, in the Boston and Providence Railroad, at 83 per cent. advance. To what did they amount ? Ans. $3262.50. 6. What is the value of 10 shares in the Philadelphia and Trenton Railroad stock, at 85 per cent., original shares being $100 ? Ans. $850. |