(6) Since £12. 10s. = 1 of £100, we have

8) 1476. 4 6 amount in 5 years:

184. 10. 62

=

£1660. 15.02 amount in 6 years :

=

whence, £1660. 15s. 03d. - £819. 4s. = £841. 11s. Oåd. is the compound interest for 6 years.

PAGE 143.

TRANSFERS OF STOCKS.

The solutions of Examples (1)-(6) are omitted, as being merely repetitions of the operations exhibited in the text but the following explain some peculiarities.

(7) The price of £100 stock is in this case = 90/3 + 1/ =£90 sterling; whence, we have

£650

90/1/

58500

325

£588.25

20

s. 5.00

and the cost is therefore £588. 5s. sterling.

=

(8) For £100 stock there is received 90%- £901 sterling; whence, we have

and therefore the sterling money received is £1589. Ss.

Ond.

(9) Here, £761⁄2 : £650 :: 100 : x;

153
2

whence, x = 65000; or, x=

130000

153

is the quantity of stock purchased: and the value of this stock sold at 770 will therefore be

so that the gain = £660. 16s. 8d. – £650 = £10. 16s. 8d.

(10) The price of the stock sold out will manifestly 65 be ·× £10000 £6500 and its investment in the 4 100

=

per cents. at 82 gives a quantity of stock

it follows that the excess of the latter of these above the former, or £15. 38. 04d. is the increase in his income.

(11) Here, £97: £879 :: 100 x, gives x = £

40

13

× 271, the quantity of stock in the original investment at 97:

40

whence, × 271 × 97: x × 881 :: 1 : 1;

13

(12) Since the dividend in 1 year = 13

of £3081

= £237, we have £3 : £237 :: 100 : x; from which we

=

find

x

237
3

× £100 = 79 × £100 = £7900,

the quantity of stock :

whence, x =

and £100 £7900 :: 797: x,
or, 1 : 79 :: 639: 8x;

79

8

× £639 = £6310, is the sterling worth of the stock at the proposed rate.

Attention to the solutions here given, will soon render the student an adept in calculations of this description and with the exercise of a little judgment, the questions may easily be varied so as to make him perfectly conversant with the Theory of the Stock Exchange.

PAGE 147.

fore.

DISCOUNT OR REBATE.

Examples (1)—(6) are omitted for reasons given be

(7)

£4 10s. interest of £100 for 1 year:

=

5s. = interest of £100 for year:

15 = interest of £100 for 14 years:

£106. 15s.

=

amount of £100 in 14 years:

whence, £106. 15s.: £275. 6s. 8d. :: £100: x,

which gives a £257. 18s. 54d. 34 f. the sum required.

x =

61

(8) The amount of £100 in 146 days at 41 per cent.

per annum =

146

· £100 + of £41

365

= £101: also, £241. 12s. 4d. = £24137:

whence, £1011: £24187 :: £100 : x;

and therefore, x = £237

=

worth.

£237. 10s. is the present

(9) The present worth of £715. 17s. due 9 months hence, at 4 per cent. per annum simple interest, is found

from

£103

£715. 17s. :: £100 : x,

which gives x = £695: whence, we have

£922: £695 :: £100 : x;

and therefore, x = £750, the quantity of stock required.

(10) If x be the present value of £100, payable at the end of 6 months, allowing 5 per cent. per annum simple interest, we have

and therefore the fixed ratio of the prices ought to be

(11) Here, 103 : 100 :: £2652.5 : sum due 2 years hence; or, sum due 2 years hence

again, 103 100 :: £2575: sum due 1 year hence;

2575 × 100

or, sum due 1 year hence

=

£2500.

103

(12) Here, 105 : 100 :: £9724.1s. sum due 3 years hence; or, sum due 3 years hence

(1) 1 cwt. 3 cwt. 3 qrs. :: £3. 4s. : x; whence, x = £12, the value of the sugar:

also, 14s. 6d. : £12 :: 1 yd. : x,

which gives x = 16 yds. 25 qrs.

or,

(2)

1 gal. : 3 hhds. :: 6s. 8d. : x,

the price of the brandy is £63 = the price of 126 yards

of cloth: therefore, the price of 1 yard

1

=

of £63=10s.

126