11. A stock is paying 5 per cent. dividend, but after seven years the dividend is to be reduced to 4 per cent. What ought to be paid per 1007. share, the value of money being 4 per cent.? 12. A person invests 5,445$ in stock paying 6 per cent. when at 90, and on the stock rising to 91 transfers to another stock paying 7 per cent., which is selling at 97; how much is his income increased? 13. A man invests 3,6007. in 3 per cent. stock at 90. He sells out at 80, and lends ğths of his money at 4 per cent., and §ths at 5 per cent. How long must the loan last, so that when he re-invests his money in 3 per cents. at 90, his gain on interest (simple) may exactly equal his loss upon principal? 14. A person has an income derived from 3,3607. which was originally invested in the four per Cents. at 96. If he now sells out at 94, and invests one half of the proceeds in railway stock at 821, which pays a dividend of 3 per cent., and the other half in bank stock at 164, paying 8 per cent. dividend, what difference will he find in his income? 15. A certain 3 per cent. stock is at 91, and a 4 per cent. stock at 123. One person buys 1,000l. stock in each, and another person invests 1,000l. in each; compare the respective rates of interest obtained by the two on their whole investments. 16. The capital of a trading company consists of 4,000 A shares of 801. each and 2,000 B shares of 25l. each; in dividing the profits 5 per cent. of the amount of each share is first paid, and then the remainder, if any, is divided equally amongst the shareholders. The profits of the undertaking in one year were 34,8537. 12s. 6d. How much would be paid to the holder of an A share and how much to the holder of a B share? 17. A buys 1007. of 3 per cent. stock at 90, and B buys 1007. of 4 per cent. stock at 135; what return per cent. will each get for his money? 18. A man has 1,5837. 17s. 11d. in 3 per cent. stock, and 9827. 12s. 6d. in 3 per cent. stock; he transfers a certain sum from the former to the latter when the stocks are at 91 and 98 respectively, and thus makes the income derived from each the same. How much has he finally in 3 per cent. stock? 19. A dividend is announced at the rate of 6 per cent., free of income-tax. What is the rate, not free of income-tax, when the rate of the tax is fivepence per £? 20. The Chancellor of the Exchequer proposes to reduce the 3 per cents. to 2 per cents., giving the fund-holder the option of being paid at par or of receiving 1027. of the new stock for every 100%. of the old. What percentage of gain or loss in his income does a fund-holder sustain who chooses the latter alternative? 21. It is proposed to issue a new 2 per cent. stock at 1087. Find the percentage return to be obtained by investing in it. The shares of the 22. A man invests 1,000l. equally in shares of two banks. one are at 3 per cent. discount, and of the other at 5 per cent. premium; the price of stock in the former suddenly rises 7 per cent., and that in the latter falls D 6 per cent. lower than when the purchase was made. If the man now sells out what will he gain or lose? 23. The expense of constructing a railway is 1,000,000l., of which 40 per cent. is borrowed on mortgage at 6 per cent. and the remainder is held in shares; what must be the average weekly receipts so as to pay the shareholders 5 per cent., the working expenses being 65 per cent. of the gross receipts? 24. A company with a capital of 200,000l. paid 7 per. cent. to the shareholders; afterwards a new issue of stock was ordered, and the profit to be divided became six times as much as at first, yet the company could pay only 3 per cent. dividends; find the amount of new stock issued. 25. The total amount of the three categories of three per cent. stock is 612,000,000. By how much would the National Debt be increased by the conversion of the whole of this stock according to the proposal of Question 20? SECTION VIII.-EXCHANGE. ART. 45.-Foreign Money. The units of value in use in the principal countries of the world are given in the accompanying table, together with their approximate equivalents in sterling money. It will be observed that several Monetary Unions have been formed. ART. 46. The Latin Union. The Latin Union was instituted by France, Belgium, Switzerland, and Italy in 1865; since then it has been joined by Greece, Spain, Roumania, and Servia. The units are the franc and the centime, which is the one hundredth part of the franc; there is also the decime, the tenth part, but it is not much used. These units have been adopted by all the countries mentioned, but in some cases under different names. Some of the latter countries have not yet adopted the standard of the Union. The standard is gold; and the standard fineness is 900 parts by weight of pure gold in 1,000 parts by weight of the alloy. The gold coins are the 20-franc piece called a Napoleon, 100-franc piece, 50-franc piece, 10-franc piece, and 5-franc piece. The weight of the 20-franc piece is 6-45161 grammes, and that of any of the others is in proportion to its indicated value. The silver coins are 5 francs, 2 francs, 1 franc, franc, franc. The millesimal fineness of the 5-franc piece is 900; that of the others is 835. A silver 5-franc piece weighs 25 grammes; it is at present legal tender for any amount, thus making the standard in a manner double. The other silver coins are only token money. The bronze coins are 10 centimes, having a weight of 10 grammes and diameter of 30 millimetres. 5 centimes, having a weight of 5 grammes and diameter of 25 millimetres. 2 centimes, having a weight of 2 grammes and diameter of 20 millimetres. 1 centime, having a weight of 1 gramme and diameter of 15 millimetres. ART. 47.-United States. The units of value in American States were founded on the old Spanish silver dollar, the value of which fluctuates between 3s. 6d. and 4s. 6d. sterling, according to the price of silver. In the United States the standard is practically the single gold standard. The fundamental unit of value is denominated the eagle. The eagle is 258 grains in weight, and its fineness is 900 grains of pure gold in 1,000 grains of the coin. The unit of account is the dollar, defined as the tenth part of the eagle. It is equivalent to 10 dimes, or 100 cents, or 1,000 mills; but only dollars and cents are used in accounts. The gold coins are (besides the eagle) double-eagle, half-eagle, 3-dollar, 2-dollar, dollar, all of the fineness of the eagle, and having a weight in proportion to their indicated value. The silver coins are dollar, half-dollar, quarter-dollar, 10-cents, 5-cents. There is a nickel 5-cents and a copper-nickel cent. "Milliard " = 1,000 million francs. "Lac " = 100,000 rupees. "Crore = ART. 48.-Germany. One system extends over the different States of the German Empire. It was established in 1876. The standard is gold; 900 parts fine in 1,000 parts of alloy. The cold coins are 20-mark pieces, 10-mark pieces, 5-mark pieces. The weight of the 10-mark piece is 3.982477 grammes; the others have weights in proportion to their values. The silver coins are 5-mark, 2-mark, 1-mark, 50-pfennige, 20-pfennige. Their millesimal fineness is 900, and they are legal tender up to 20 marks. The "thaler" silver pieces have not yet been demonetized; they continue to be legal tender for three marks. ART. 49. The Scandinavian Union. The standard of the Scandinavian Union is also gold. The gold coins are 10-kroner and 20-kroner, having a millesimal fineness of 900. The weight of the former coin is 4·480286 grammes. The krone itself is represented by a silver coin which is legal tender up to 20 kroner only. This Monetary Union was instituted in 1875. ART. 50.-Par of Exchange. By the par of exchange is meant the rate connecting the unit of value of one country with the unit of value of another country, the intrinsic value only of the units being considered. When both units are defined in terms of gold of a constant fineness, the value of the rate is invariable; but when one of the units is defined in terms of gold, and the other in terms of silver, the value of the rate fluctuates with the price of silver. Example of the first case: To find the par of exchange between the pound and the franc. |