4th. To find the selling price, when the cost and rate per cent. of gain or loss are given.

354. The Cost is the base on which the percentage is reckoned.

355. The Rate per Cent. is the number of per cent. which the gain or loss is of the cost.

356. The Selling Price is the cost plus the gain, or minus the loss. It corresponds with the Amount, or Difference, as defined in Percentage.

357. The Amount of gain or loss is the difference between the cost and selling price.

358. Therefore, to solve any problem in Profit and Loss, apply the proper rule, or rules, as given in Percentage.

EXAMPLES.

1. Bought a house and lot for $12000, and sold the same for $13500: what was the gain per cent.?

2. Bought a quantity of merchandise amounting to $1000, and sold the same at 25% profit: required the proceeds.

3. I desire to sell a quantity of broadcloth, which cost me $6 per yard, so as to make 15% profit: at what price must I sell it?

4. Sold a horse for $150, and lost 25%: how much did the horse cost me?

5. A farmer bought a yoke of oxen for $150, which was 25% less than their real value, and sold them for 25% more than their real value: what was his gain per cent.? Ans. 66%.

6. Sold flour at $10.45 per barrel, and thereby lost 5% of the cost: what was the cost per barrel?

7. What price must I ask for cloth which cost me $3.80 per yard, in order that I may deduct 5% from my asking price, and still make 25% profit?

8. A broker bought stock at 20% above par, and sold it at 20% below par: what per cent. of the cost did he lose?

Ans. 331%.

9. Bought a cask of wine containing 42 gallons, at $2.50 per gallon, and 12 gallons have leaked out: at what price per gallon must I sell the remainder, to gain 4 per cent. on the first cost?

10. Bought 100 barrels of flour, at $8.10 per barrel, and sold 90 barrels for what the whole cost. If I sell the remaining 10 barrels at the same price, what will be my total gain, and my gain per cent.?

11. A merchant sold a piece of goods which he had marked 25% above cost, at 20% discount from his marked price, thinking he should still make a profit. Did he gain or lose?

12. A grocer sold raisins which cost him $4 per box, at $3.50 per box: how much was the loss per cent.?

13. Sold flour at $9 per barrel, which was 10% less than the original cost. What would have been the gain per cent. if it had been sold at $10.50?

14. A gentleman sold two house-lots at $1200 each. On one he gained 20%, and on the other he lost 20%. Did he gain or lose by the transaction, and how much?

15. A speculator bought 200 shares of railroad stock, at $96 per share. He sold 100 shares of the same at a gain of 5%, and the other 100 shares at a loss of 5%. Did he gain or lose by the operation, and how much?

16. What per cent. advance on the cost of goods must I ask, in order to deduct 10% from the asking price, and still make a profit of 10 per cent.?

17. A merchant purchased cloth at $3.50 per yard, less 5% for cash. What was the net cost per yard, and what per cent. must be added to the invoice price, to give a profit of 10 per cent.?

18. A firm, having failed in business, owes to A $1975, to B $4250, to C $1682, and to D $1140. Their assets, less expenses of settlement, amount to $2397.45. What per cent. of their indebtedness can they pay? What dividend will each creditor receive?

GOLD VALUE OF A DEPRECIATED CURRENCY.

359. To find the value of one dollar in currency, when gold is at a premium.

EXAMPLES.

1. When gold is quoted at 150, what is the value of a dollar "greenback?"

SOLUTION.

1.00
1.50

= = .66.

Since $1.50 in currency is worth $1 in gold, the value of $1 in currency is 88 of $1 in gold 663 cents, Ans. Hence the

=

RULE.-Divide $1 by 1 plus the premium expressed dec

mally.

NOTE.-The term premium is here used in the popular sense, though, scientifically speaking, the currency is at a discount, and not gold at a premium, for gold is the standard.

MONTHLY TABLE

OF THE HIGHEST QUOTATIONS OF GOLD,

From and including January, 1862, the date of the suspension of specie payment, to August 1, 1871.

By the foregoing table, it will be seen that the highest price of gold, from the first issue of paper money by the Government, to August 1, 1871, was in July, 1864, when it reached 285; that is, it took so many dollars in currency to buy 100 dollars in gold. With some fluctuations, paper has gradually appreciated until the present time (August, 1871), when the ruling price of gold is about 112.

2. The greatest depreciation in "greenbacks" occurred in July, 1864, when gold was quoted at 285. of one dollar in currency at that time?

What was the value

Ans. 35 cents.

3. When gold sells at 110 for currency, what is the discount on the currency? Ans. 91%.

INSURANCE.

360. Insurance is a contract by which one party, in consideration of a certain sum paid, engages to indemnify another for a loss which he may sustain by certain casualties.

361. The Insurer, or Underwriter, is the party who makes the contract, or takes the risk.

362. The Premium is the sum paid for the insurance.

363. The Policy is the written contract made by the insurer. 364. There are five kinds of insurance, namely, Fire, Marine and Inland, Health, Accident, and Life Insurance.

365. The Insurance Business is carried on chiefly by incorporated associations, called Insurance Companies.

366. Insurance Companies are divided into two classes,-Stock Insurance Companies, and Mutual Insurance Companies.

A Stock Insurance Company is a company established with a specified sum as Capital. This is divided into shares, and sold to individuals, which gives the company a "paid up" capital as a Reserve Fund, to cover all losses which may occur to the insured, the stockholders receiving all the profits as dividends on their capital invested.

367. A purely Mutual Company, on the other hand, is not only estab lished without any Capital, but takes risks without Cash Premiums, except a small charge for the Policy, and sometimes a percentage on the "Premium Notes," to defray incidental expenses.

The persons insured become members of the company, and give notes for the premiums, and when a loss occurs, each member is "assessed" for his share, to discharge the liability of the company for the loss. The profits are distributed pro rata among the members at stated periods.

368. Some companies, called Mixed Companies, are conducted upon the Stock and Mutual plans combined.

FIRE INSURANCE.

369. Fire Insurance is insurance against loss by fire, on Buildings, Merchandise, Household Furniture, Rents, Leases, Manufactories, and other insurable interests.

370. A Rate List is a schedule of charges for premiums adopted by a company, in which buildings and other property are classified, and the rates given, according to the nature of the risks.

371. The charges are stated either at a certain rate per cent., or a certain number of cents on $100. In the latter case, the rate is a fractional rate per cent. Thus, 30 cents on $100 is of 1% = .003; 75 cents

or

on $100 is .75% = .0075; and $1.50 on $100 is 14%.

A charge is also made for the Policy, and for Revenue Stamps.

The Revenue Tax on Insurance Policies is as follows:-On a Life Insurance Policy, issued for a sum not exceeding $1000, 25 cents; exceeding $1000, and not exceeding $5000, 50 cents; exceeding $5000, $1.00:—On Marine, Inland, or Fire Insurance Policies, when the premium amounts to $10 or more, 25 cents; when it does not exceed $10, 10 cents.

372. Risks are usually taken on furniture and ordinary merchandise, at the same rates as are charged for insuring the houses or stores in which they are contained.

373. In computing Insurance, the rules of Percentage apply.