STATE AND LOCAL TAXES 115 



EXERCISE 



1. I bought at a credit store goods to the amount of 

 $55.08 for 4 mo. How much ready cash will be required to 

 pay the bill, money being worth 6% ? 



2. I bought at a credit store goods to the amount of 

 $101.50 for 3 mo. A neighbor bought the same bill of goods, 

 paying cash. What was his loss, money being worth 6% ? 



3. A farmer sold a horse for $175 on 6 mo. time without 

 interest. What was the cash value of the horse, money 

 being worth 6% ? 



4. A farmer has a cow worth $80. What must be the 

 selling price when she is sold on 3 mo. time without inter- 

 est, money being worth 6% ? 



5. I bought goods at a credit store to the amount of 

 $82.40 on 6 mo. time. I was offered a 5% discount for cash. 

 Did I gain or lose by accepting the offer, money being 

 worth 6% ? 



6. A merchant who conducts a credit store sold during 

 the year $20,000 worth of goods. He marked his goods to 

 sell on the following conditions; namely, 10% net profit; 

 6 mo. time, money being worth 6% ; 2% loss on bad debts. 

 What was the selling price of $1 worth of goods ? What was 

 a cash customer's loss on purchases amounting to $330 ? 



STATE AND LOCAL TAXES 



137. The state must provide for taking care of the insane, 

 the blind, the deaf and dumb, other unfortunates, and the 

 criminals ; it aids in supporting schools to educate the 

 children ; it must pay the salaries of the governor and 

 other state officials, and look after general improvements 

 all of which is worth many more thousands of dollars to the 



