paid to the Company is a percentage on the value of the property insured, or on the specified sum, and is called a

Premium.

Ex. 1. The total rental of an estate is $8474.40, and the agent is paid a commission of 5%; how much is the commission?

$8474.40 x .05 $423.72.

Ex. 2. What is the annual premium for insurance on a building worth $7500 at the rate of 24 ct. for $250?

1. After paying 5% to his agent, a man received $1436.40; what was the agent's commission?

2. What is the amount of annual premium for the insurance of a building for $8520 at 1%%?

3. A landlord allowed his tenants 20% reduction from their rents; what was the nominal rent of a tenant whose reduced rent was $1800?

4. A commission merchant sells goods for $2864 and sends to his principal $2824.62 after deducting commission; what was the % commission?

5. A commission merchant is asked to purchase $6800 worth of goods at 21% commission; how much money was paid by his principal?

6. A commission merchant received $6953 with which to purchase goods after deducting 24% commission; what was paid for the goods?

7. An agent sold goods for $5672; his bill for expenses was $56.72, and his commission was 11%; what % of the selling price did the principal receive?

8. A man insured his life for $5000 at an annual premium of 21%; how much had he paid at the end of 13 years?

9. A cargo is insured for $254500, its full value, at 2%; the ship is insured for $120000 at 23%; the owner of the cargo pays all insurance and sells his goods at the end of the voyage at an advance of 9% over total cost, allowing $2000 for freight; what was the selling price?

10. The premium for insuring a building at 21% is $1136.25; find the insurance.

11. A company insured a building and the goods it contained for $117944, the goods being worth 15% of the value of the building. The merchant paid 2% premium on the building and 11% premium on the goods; what was the total premium?

12. A man sold through an agent some merchandise, paying the agent 5% commission. The agent invested. the proceeds in two parts after taking out commissions of $325 at 5%, and $260 at 4%, respectively; what was the value of the merchandise?

13. A man had two houses, each costing $5000; he insured one for $4000 at 14%, and the other for $6000 at 14%; find the difference between the loss on one and the gain on the other, both houses having been burned on the day after insurance.

TAXES AND DUTIES.

225. Persons owning property or importing goods, pay to the government (for its support) a certain per cent of their property or of the foreign value of the goods imported.

The percentages paid on property are called Taxes.

R

The percentages paid on imported goods are called Duties.

Duties levied on articles regardless of their value are called Specific Duties.

Duties levied at a certain per cent on the foreign values of goods are called Ad Valorem Duties.

In some States voters pay annually a small fixed sum of money ($1.50 or $2) before they can vote. Such money is called a Poll Tax

EXAMPLES XCVII.

Written Exercises.

1. The expenses of a certain town are $39512.32 annually; the tax is 16 mills on the dollar; what is the value of the town as fixed by the assessors? (The assessors' valuation is much smaller than the real valuation.)

2. The valuation of a certain town is $6495860, while the assessed valuation is 25% of that; the polls number 1112, and the taxes are $16.25 on each thousand of assessed valuation; what are the expenses of the town?

3. The expenses of a city are $339000, and the assessed valuation is $16950000; what is the tax rate expressed as per cent? Expressed as dollars on a thousand?

4. What is the duty on 5000 bbl. of hydraulic cement at 8 ct. per bbl.?

5. What is the duty on 125 plates of polished unsilvered glass 24 x 30 in., at 8 ct. per sq. ft.?

6. What is the duty on 100 doz. penknives valued at 30 ct. per doz., at 25 % ad valorem ?

7. What is the duty on 3t. of No. 23 steel wire at 2 ct. per lb. ?

8. A merchant imported 1550 yd. of tapestry carpet valued at 80 ct. a yd.; what was the duty at 42% ad valorem ?

9. An invoice of 150 doz. linen collars valued at $1.30 per doz., calls for how much duty at 30 ct. and 30% ?

10. What does the government receive on an importation of 1000 gross of steel pens at 8 ct. per gross?

CHAPTER XI.

INTEREST.

PROMISSORY NOTES.

226. When one person borrows money from another person, he gives to the lender a written promise to repay the money and to pay also a percentage on the money at a given rate % per year. This percentage is called

Simple Interest, or Interest.

The form of note given in the following pages is the form in use by the best business men in the United States. Students are strongly advised to adhere closely to the form while practising the making of notes.

The written promise is called a Promissory Note. For example:

$46700.

Nashville, Tenn., Jan. I, 18 94.

Thirty days after date I promise to pay to the order of James Allen......... www.Four hundred sixty-seven 100 Dollars at the German American Bankum Value Received, with interest.

James Ward.

No. 82. Due fan. 31/Feb. 3, '94.