2. The same example worked by Rule 2. Amount of £1 for 2 yrs. 8mo. = 1.113£. Interest on debt...... 845.816666 333 333311 845816667 = 845.816 × .113€. 84581667 25374500 2537450 253745 25374 2537 254 25 1.11333333)95.8592219(86.101097£. 890666666 67925553 66800000 1125553 1113333 12220 11133 1087 1012 75 77 Ans. £86: 2:0 nearly. 3. The same example worked by the exact method. Def. 1. Commission is an allowance of so much per cent. made to an agent for buying or selling goods for his employer on the price of the goods sold. Def. 2. Brokerage is an allowance of so much per cent. made to brokers for assisting in the transference of property. Def. 3. Insurance is a contract by which one person, or company, undertakes to make good the loss of another person, on consideration of the latter paying a certain sum, called the premium, which is so much per cent. on the sun insured. When a third person is employed to effect the insurance, commission is charged; and in all cases a duty is payable to Government. I. TO FIND THE COMMISSION, OR BROKERAGE, ON A GIVEN SUM. Rule. Express the rate per cent. in terms of £1, multiply the given sum by it, and divide by 100. If the rate per cent. be less than £1, the multiplication may be effected by aliquot parts. EXAMPLES. 1. Find the commission on £572: 4: 63 at 12 per cent. 2. Find the brokerage on £456: 7: 6 at per cent. 3. An agent is allowed a commission of 6 per cent. for selling goods, and guaranteeing the debts to his employer. His sales in a year amount to £23455 13:4; his losses by bad debts, &c. to £543: 10: 0; his expenses in business to £103: 17: 8; what is his nett annual income? II. TO FIND THE EXPENSE OF INSURING A GIVEN SUM. Rule. Calculate the expense as in Commission, adding to the rate of premium that of Commission (if any) and of the stamp duty. 111. TO FIND WHAT SUM MUST BE INSURED TO COVER A GIVEN SUM Rule. Subtract the sum of premium, commission, and stamp duty on £100, from £100; and state a proportion thus. As this remainder is to the given sum, so is £100 to the answer. EXAMPLES. 1. Find the expense of insuring goods to the amount of £2364 : 15: 0, at a premium of 4 per cent.; commission 3 per cent.; policy duty per 2. Find what sum must be insured to cover £3540: 16: 0 at a premium of 3 per cent. ; commission per cent.; duty per cent. Rate of premium.... £3.5 per cent. Def. 1. Stock is the name given to certain bonds issued by a company or government, in acknowledgment of a debt to the holder, which bonds entitle the holder either to receive a fixed rate of interest, or to share in the gross profits of the company, in proportion to the amount of the bond. Def. 2. The amount of the bonds is called the Funds. Def. 3. If the saleable price of a bond be its nominal value, the stock is said to be at par, and it is said to be above, or below par, or—at a premium or discount-according as its price is above or below this value. Note-In buying and selling stock, the assistance of a Broker is required; the brokerage charge is per cent. I. TO FIND THE COST OF A GIVEN AMOUNT OF STOCK AT A GIVEN PRICE. Rule. Multiply the given stock by the number of pounds in the price, and divide the product by 100. To estimate the total cost, the brokerage must be added to the price. EXAMPLE. What sum of money will purchase £2675 stock in the 4 per cents. at 913? Brokerage per cent. |