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MISCELLANEOUS QUESTIONS.

1. A merchant, having $1728 in the Union Bank, wishes to withdraw 15 per cent. ; how much will remain ?

Ans. $1468.80.

2. A gentleman has an estate of $15.000. He has given 124 per cent. to his wife, and 25 per cent. of the remainder to his children; how much will he have left ? Ans. $9843.75.

3. What is the difference between 12 per cent. of $560, and 18 per cent. of $400 ? Ans. $2.00.

4. A merchant expended $1890 as follows. He laid out 12 per cent. of his money for calicoes; 20 per cent. for hard ware; 40 per cent. for broadcloths; and with the remainder he bought 2646 pounds of sugar; what did it cost him a pound?

Ans. $0.20.

SECTION XXXIII.

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 ?

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As $100 will amount to $106 in one year at 6 per cent., it is evident, that if 100 of any sum be taken, it will be its present worth for one year; and that will be the discount. And, as $1 is the present worth of $1.06 due one year hence, it is evi

dent, that the present worth of $12.72 must be equal to the number of times $12.72 will contain $1.06. From the above illustrations we deduce the following

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. $638.67.24. 5. What is the present worth of $986.40, due 7 years, 9 months and 20 days hence ? Ans. $671.78.258 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.

203.

7. What is the present worth of $678.75, due 3 years, 7 months hence, at 7 per cent.? Ans. $534.97.5.75 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 $715.50, dated Aug. 1835. What ready Ans. $703.07.8+

9. James has a note against Samuel for 17, 1834, which becomes due, January 11, money will pay the note Sept. 25, 1834 ?

6551

10. A has B's note, which becomes due Nov. 25, 1835, for $914.75. What is this note worth January 1, 1835 ? Ans. $867.88.4+

11. A merchant has given two notes; the first for $79.87, to be paid January 21, 1836; the second $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. $1381.84.7 653

13. Bought cloth in Boston at $5.00 per yard. my "asking price," in order that I may fall on and still make 10 per cent. on my purchase?

2501.

What must be it 10 per cent. Ans. $6.11. $365.87, to be

14. James Ober owes Samuel Hall as follows: 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, 1834 ?

Ans. $653.40

15. A B, of Bradford, has sent shoes at several different times to Spofford and Tileston, New York, as follows.

January 16, 1834, were received shoes to the value of $865.00.

Feb. 17, 1834,

March 29, 1834,

May 25, 1834,

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June 19, 1834,

The above were sold on 6 months' credit. A B has received of Spofford and Tileston, as follows: September 1, 1884, $1000; Oct. 19, 1834, $375.25; Nov. 15, 1834, $681,29; Dec. 8, 1834, $100; March 12, 1885, $275.28. Required the balance at the time of settlement, Sept. 9, 1835.

Ans. Spofford and Tileston owe to A B, $195.51+

SECTION XXXIV.

COMMISSION AND BROKERAGE.

COMMISSION AND BROKERAGE are compensations made to factors, brokers, and other agents, for their services, either for buying or selling goods.

A Broker is

NOTE.-A factor is an agent, employed by merchants, residing in other places, to buy and sell, and to transact business on their account. an agent employed by merchants to transact business.

RULE.

The method of operation is the same as in interest.

EXAMPLES.

1. My agent in New Orleans, has purchased cotton, on my account, to the amount of $18768; what is his commission, at 13 per cent. ? Ans. $328.44.

2. If a broker sells goods for me to the amount of $896, what is his commission, at 2 per cent. ? Ans. $17.92. 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 per cent.? Ans. 8£. 18s. 18 d.

400

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 184

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.

5. 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 2 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, 37 T. 17 cwt. 8 qr. 16.

SECTION XXXV

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 Isaid 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 X 1.35=$32886 Answer. 2. Sold 15 shares, $100 each, of the Boston Bank, at 13 per cent. advance. To what did they amount? Ans. $1695.

3. What must I give for 12 shares in the Haverhill Bank, at 15 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. 7 d. 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. 7. What must be given for 5 shares of the stock in the Ocean Insurance Company, at 7 per cent. advance; the original shares being $100 ? Ans. $535.

SECTION XXXVI.

INSURANCE AND POLICIES.

INSURANCE is a security, by paying a certain sum, to indemnify the secured against such losses as shall be specified in the policy.

Policy is the name of the writ, or instrument, by which the contract or indemnity is effected between the parties.

NOTE.If the average loss does not exceed 5 per cent. the underwriters are free, and the insured bears the loss himself.

RULE.

The same as in interest and discount.

EXAMPLES.

1. What is the premium on $896, at 12 per cent.?

Ans. $107.52.

2. What is the premium on $850, at 184 per cent.?

Ans. $157.25.

3. What is the premium of insuring $9870, at 7 per cent. ? Ans.$690.90.

4. What sum will be secured for a policy of $1728, deducting 15 per cent. ? Ans. 1468.80. 5. What sum must a policy be taken out for, to cover $ 2475, when the premium is 10 per cent ? Ans. $2750.

100

NOTE. As 10 per cent. is already taken out, the sum covered must be 90 of the policy.

6. A certain company own a cotton factory, valued at $ 26250. For what sum must a policy be taken out, to cover the whole property, at 12 per cent. ? Ans. $30.000.

7. If a policy be taken out, for $3600, at 40 per cent. what is the sum covered? Ans. $2160.

NOTE. It is evident, that, if 40 per cent. be taken from any sum, 60 per cent. will be left.

8. If a policy be taken out for $600, at 10 per cent., what is the sum covered? Ans. $540.

9. A merchant adventured $1000 from Boston to New Orleans, at 5 per cent.; from thence to Chili, at 5 per cent. ; and thence to Canton, at 6 per cent.; and from thence to Boston, at 7 per cent. For what sum must he take out a policy, to cover his adventure the voyage round? Ans. $1241.34.8+.

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