THE NEW STUDENT'S REFERENCE WORK 2187
2. A mill is insured for f of its value at 3%. What is the value of the mill if the premium paid was $171?
$171 _,_ .03 = 5700.
5700 = | value of mill
i = iof 5700 = 2850.
f = 3 X2850 == $8550, value of mill.
3. A merchant values his stock at $12,400, and insures it for f of its value. If the premium is $124, what is the rate of insurance ?
| of 12,400 == 9300 (sum insured).
Divide premium by sum insured = rate of insurance.
124 -r- 9300 = .Oli \\% = rate of insurance.
EXERCISE 35.
1. Find the cost of insuring a block of buildings valued at $16,000 for | of the value at 1|%. .
2. A factory which cost $54,000 is insured for $36,000 at 2|%. If it should be totally destroyed by fire, what would be the loss to the owner? How much would the insurers lose ?
3. I insure a ship worth $48,000 at 2|% on f of its value; and the cargo worth $8500 at 4|% on f of its value. How much do I pay for premiums ?
4. My furniture is insured for f %. The premium is $35. What is the insurance?
5. What value do I place on my property when I pay a premium of $175, the rate of insurance being 1|%, and the property being insured for f of its value?
6. A hotel costing $50,000 is insured for f of its value. The premium is $450. What is the rate of insurance?
7. What is the rate of insurance when a policy for $5600 cost $84?
8. A merchant paid $176 for insurance on his goods. The face of the policy is $8000. What is the rate ?
TRADE DISCOUNT.
Trade or commercial discount is a reduction from the marked or list price of goods.
The list price is the price given in a catalogue or price list.
The net price is the price remaining after all discounts have been deducted.
When there are several discounts, the first discount is taken from the list price, the second discount is taken from the remainder, and so on.
