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2. What is the brokerage upon £673 16s. at £& per cent.?

3. If a broker fell goods to the Id.; what is his demand, at I

Ans. £4 4 2 amount of £709 19s. per cent.? Ans. 101. 12 1

BUYING AND SELLING STOCKS.

Stock is a general name for the capitals of trading companies, banks, &c. and the buying and felling certain sums of money in those funds, is not unusual.

EXAMPLES.

1. What is the purchase of 2751. 15s. bank stock, at 741 per cent.?

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Or, If I had taken parts for 741. the rate per cent. then the fum of the several quotients would have been the anfwer as above.

When the price is above 100, take parts for the furplus of the price above 100, and add them to the given fum for the answer.

2. What is the purchase of 10291. ros. 6d. bank stock, at 110

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per cent ?

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£.

S. d.

1029 10 6 at 100 per cent.
102 19 0 at 10 per cent.
2 11 5 at
4 per cent.

Ans. 1135

I o at£110 per cent.

3. What does 1600l. capital stock in the Massachuchusetts bank come to, at 120l. per cent.?

Ans. 19221.

POLICIES OF INSURANCE.

Insurance is a security or assurance, by means of a Writ called a policy, to indemnify, the insured of such lofsses as shall be specified in the policy fubfcribed by the infurer or infurers, by which the underwriters oblige themselves to make good and effectual the property infured, in confideration of a certain premium at a ftipulated rate per cent. (which varies according to the risk) to be immediately paid down, or otherwife fecured according to the tenor of the agreement.

The average lofs is 10 per cent.-that is, if the infured fuffer any damage or lofs, not exceeding 10 per cent. he bears it himself, and the insurers are free.

A policy should be taken out for a sum sufficient to cover the principal and premium, and the business of this rule is, in general to calculate what that sum should be.

CASE

CASE I.

When the premium at a certain rate per cent. for infuring a sum, is required, the operation is the same as in. intereft or conımiffion.

1. What is the premium upon £537 15 9 at 6+ per

cent.?

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To find the sum for which a policy should be taken out to cover a given sum.

RULE. Take the premium from £100, and say, as the remainder is to £100; so is the fum adventured to the policy.*

1. It

* Now, it is plain that, if I want to recover £92, I must, in this cafe, infure upon £100; therefore, to recover £759 I must insure upon £825, for when 8 per cent. for premium is deducted, I fshall have £759 remaining neat.

For £825 fum insured upon at 8 per cent,
66-Premium to be deducted.

£759 The first outset.

1. It is required to cover £759, premium 8 per cent; for what sum muft the policy be taken?

100
8

92: 100 :: 759

100

92)75900(£825 Anf.
736

230
184

460
460

2. A merchant fent a vessel and cargo to sea, valued at £1525; what sum must the policy be taken out for, to cover his property, premium 19 per cent. ?

100

19,5

80,5 : 100 :: 1525: £1894 8 24 Ans.

CASE III.

When a policy is taken out for a certain fum in order to cover a given sum: To find the premium, fay; As the policy is to the covered sum; so is £ 100 to a fourth number, which, being taken from £150, will leave the premium.

If a policy be taken out for £1250 to cover £500; what is the premium per cent. ?

1250: 500 :: 100

100

1250)50000(40 and £100-40=£60 Ans.

CASE

CASE IV.

When the policy for covering any sum and the premium per cent. are given to find the sum to be covered.

RULE. Deduct the premium per cent. from 100, and say, As 100 is to the remainder; so is the policy to the fum required to be covered.

If a policy be taken out for £1250 at 60 per cent.; what is the adventure, or sum to be covered?

100

60

100: 40:: 1250
40

100)50000(£500 Anf.

CONPOUND INTEREST.

Compound Interest is that which arises from the inter eft being added to the principal, and (continuing in the hands of the borrower) becomes a part of the principal, at the end of each stated time of payment.

GENERAL RULE. Find the amount of the given principal, for the time of the first payment, by simple intereft; next find the interest of that sum, or principal and add it as before, and thus proceed for any number of years, still accounting the last amount as the principal for the next payment The given principal being fubtracted from the last amount, the remainder will be the compound interest.

EXAMPLES.

1. What will £480 amount to in 3 years, at £6 per cent. per annum?

Principal.

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