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1. Find the commission on £572:4:64 at 127 per cent.
2. Find the brokerage on £456 : 7:6 at i per cent.
£. s. d.
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?
£. d. 23455 13 4
TO FIND THE EXPENSE OF INSURING A GIVEN SUM,
Rule. Calculate the expense as in Commission, adding to the rate of premiumn that of Commission (if any) and of the stamp duty.
Ill. TO FIND WHAT SUM MUST BE INSURED TO COVER A GIVEN SUM
AND ALL EXPENSES OF INSURANCE.
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 % per cent.; policy duty } per cent.
Rate of premium = £4} per cent.
2. Find what sum must be insured to cover £3540: 16 : 0 at a premium of 33 per cent. ; commission i per cent.; duty & per cent.
Rate of premium.... = £3.5 per cent.
commission.. = £ .75 ...
= £ .125....
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.
TO FIND THE COST OF A GIVEN AMOUNT OF STOCK AT A GIVEN
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 41 per cents. at 913 ? Brokerage } per cent.
Cost per cent. = (£913 + 3) = £911 = £91.5
Product divided by 100 = £2447.625
Ans. £2447 : 12 : 6.
11. TO FIND HOW MUCH STOCK CAN BE PURCHASED FOR A GIVEN SUM.
Rule. State a proportion thus: As the price of £100 is to the given sum, so is £100 to the answer.
EXAMPLE. Find what amount of stock may be purchased in the 3} per cents. at 87} for £3425. As £873
£3914 : 5:89 Ans.
III. TO FIND WHAT INTEREST PER CENT. MAY BE OBTAINED BY
PURCHASING STOCK AT A GIVEN PRICE.
Rule. State a proportion thus: As the price of £100 stock is to £100, so is the interest on £100 stock to the answer.
Ans. £3: 8:13 nearly.
IV. TO FIND IN WHICH OF TWO STOCKS IT IS MORE ADVANTAGEOUS
Rule. Compare the ratios of the interest on, to the price of, £100 stock, in each case. The stock to which the greater ratio belongs is the more advantageous.
EXAMPLE In which is it more advantageous to invest, in the 31 per cents. at 913, or in the 34 per cents. at 92% ? 31 913
741 As 26 Х 741
28 Х 731 As 13 Х 741
14 Х 731
V. TO FIND WHAT ANNUAL INCOME MAY BE REALIZED BY INVESTING
A GIVEN SUM IN STOCK AT A GIVEN RATE.
Rule. State a proportion thus: As the price of £100 stock is to the given sum, so is the rate of interest to the answer.
EXAMPLE Find what income may be derived from investing £2865 in the 31 per cents, at 715. As £713 £2865
VI. TO FIND WHAT SUM MUST BE INVESTED IN A GIVEN STOCK TO
PRODUCE A GIVEN INCOME.
Rule. State a proportion thus: As the înterest on £100 stock is to the amount of the income, so is the price of £100 stock to the answer.
£85.375 : Ans.
£170.75 : Ans.