Browse the Topics, Table of Contents, and Index
Follow us:
Twitter Facebook

6.1 Introduction to Lending

6.1 Introduction to Lending
<
>
  • Math Help

    To help borrowers understand the contractual obligations of a particular loan, the federal government requires lending institutions to disclose to each borrower in writing several pertinent facts regarding the loan before the borrower is asked to sign a promissory note. This requirement is governed by the Truth in Lending Act. Some of the required disclosures include:

    • the loan proceeds
    • the total amount due
    • the finance charge (see page 255)
    • the annual percentage rate (see page 256)
  • Consumer Suggestion

    If you are concerned about having to pay back a loan, visit FinAid.org. Here you will find a Loan Repayment Calculator which estimates your monthly loan payment and the salary needed to pay that amount.

  • Checkpoint Solution

    The loan occurs on March 17 and is due 120 days from that date.

    So the note is due on July 15.

    The total amount due is

  • Comments (1)

    These comments are not screened before publication. Constructive debate about the information on this page is welcome, but personal attacks are not. Please do not post comments that are commercial in nature or that violate copyright. Comments that we regard as obscene, defamatory, or intended to incite violence will be removed. If you find a comment offensive, you may flag it.
    When posting a comment, you agree to our Terms of Use.

     _    _    _    _    ______     ______     _____  
    | || | || | || | || |      \\  /_   _//   / ___// 
    | || | || | || | || |  --  //   -| ||-    \___ \\ 
    | \\_/ || | \\_/ || |  --  \\   _| ||_    /    // 
     \____//   \____//  |______//  /_____//  /____//  
      `---`     `---`   `------`   `-----`  `-----`   
                                                      
    
    Showing 1 comments
    Subscribe by RSS
    system user
    Ron Larson (author)6 years ago |
    I use the following poem to remember the number of days in a month.
    Thirty days hath September,
    April, June, and November;
    All the rest have thirty-one,
    Save February, with twenty-eight
    And one day more you add to it each year in four.
    0
©Larson Texts, Inc. All Rights Reserved.