Marks 1,466 at = $350 (see example (a).
Marks 1,466 at 95% 342 = $350 +.11 (3s2 of 1% of S350) = $350.11.
Marks 1,466 at 95% %2 = $350 .11 = $349.89.
In converting dollars into marks you reverse the fractional signs plus or minus: (c) $349.89 at 95% less = 349.89 plus of itself 349.89 +.11 = $350.
(d) $350.11 at plus = 350.11 minus %2 of itself = 350.11 .11 = $350.
We can then proceed as in example (b) and reduce $350 to marks = Marks 1,465.97.
8. Profits.When the rate is quoted in cents per mark, a fluctuation of .01 cent amounts to about 42 cents per $1,000. % of 1 per cent profit would be rep resented by .03 cent advance.
$1,000 at 24 = 4166.67 1,000 at 24.03 = 4161.46 a gain of marks 5.21 or 81.25 on $1,000 When the quotation is cents per 4 marks an in crease in the rate of % cent (96 to 96%) corresponds roughly to of 1 per cent in the dollar amount.
$1,000 at 96 = 4166.67 1,000 at = 4161.25 a gain of 5.42 or $1.31 per $1,000If it is desired to make an exact profit, take the per centage on the rate itself.
Rate .96 Profit, 1/4 of 1% .0024 .9624 per 4 marks or 24.06c. per mark $1,000 at 96 4166.67 1,000 at 96.24 4156.28 1,000 at 4155.84 at 96.24 a profit of 10.39 marks or $2.50 is made, and at a profit of 10.83 marks or $2.60, a difference of ten cents per $1,000 in favor of the seller. The latter method is close enough therefore for ordinary transactions.
A fractional variation of 164 of 1 per cent of course represents 15% cents per $1,000.
9. Purchase of German long demand rate is the basis from which the rates for bills are cal culated.
The German official bank rate and the private dis count rate govern the interest on the different classes of bills.
Quotations for time bills drawn on Germany are arrived at by deducting the interest, stamps, etc., from the demand rate.
The above figures are calculated on the basis of marks 400 being equal to $95 and 360 days to the year.
What price can be paid for 60 days' sight drafts on Hamburg, Reichsbank rate 3 per cent, check rate 95.50? New York cheque rate on Berlin = 95.50 Less stamp duty %o of 1%. .05 60 days at 3% .48 .53 91.97 or 95 per 4 marks If the New York rate is supplemented by a. fractional quo tation, the following decimals should be added or deducted, as the case may be, to the rate in calculating the value of the bills : .015 %2 .00030 %4 .00045 Find the price of a thirty-day sight draft, interest 3°*G, check rate plus %4.
Cheque rate. 95.50 plus 3/44 of 1% .045 95.545 less Stamps of 1% .05 30 days at 3% .24 95.255 or 951'4 In Canada the above calculations would be affected by the discount or premium on New York funds; in German exchange the premium is added or deducted as the case may be.