### 6.1 Introduction to Lending

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• 1. Promissory Notes

Find (a) the term of the loan and (b) the total amount due. (See Example 1.)

• Worked-Out Solution
1. The term of the loan is 2 years.
2. The total amount due is \$1900.

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```             ___     _____     __   __   _    _
___     / _ \\  |  __ \\   \ \\/ // | || | ||
/   ||  / //\ \\ | |  \ ||   \ ` //  | || | ||
| [] || |  ___  ||| |__/ ||    | ||   | \\_/ ||
\__ || |_||  |_|||_____//     |_||    \____//
-|_|| `-`   `-`  -----`      `-`'     `---`
`-`
```
• 2. Promissory Notes

Find (a) the term of the loan and (b) the total amount due. (See Example 1.)

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```           __   __   ______    __   __   ______
___    \ \\/ // |      \\  \ \\/ // |      \\
/   ||   \ ` //  |  --  //   \ ` //  |  --  //
| [] ||    | ||   |  --  \\    | ||   |  --  \\
\__ ||    |_||   |______//    |_||   |______//
-|_||    `-`'   `------`     `-`'   `------`
`-`
```
• 3. Due Date

When is the note shown below due. (See Example 2.)

• Worked-Out Solution

The note was signed on March 1, 2012. It is due in 90 days.

So, the note is due on May 30, 2012.

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``` _____     _    _    __   _     _____     _____
|  __ \\  | || | || | || | ||  |  ___||  |__  //
| |  \ || | || | || | '--' ||  | ||__      / //
| |__/ || | \\_/ || | .--. ||  | ||__     / //__
|_____//   \____//  |_|| |_||  |_____||  /_____||
-----`     `---`   `-`  `-`   `-----`   `-----`

```
• 4. Due Date

On April 19, you obtain a 60-day note for \$5000. The costs include \$81.37 for interest and a \$50.99 service charge. When is the note due? How much is due at the end of 60 days? (See Example 2.)

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``` __   _    __   __    _____      ___     _    _
| || | ||  \ \\/ //  /  ___||   / _ \\  | \  / ||
| '--' ||   \ ` //  | // __    | / \ || |  \/  ||
| .--. ||    | ||   | \\_\ ||  | \_/ || | .  . ||
|_|| |_||    |_||    \____//    \___//  |_|\/|_||
`-`  `-`     `-`'     `---`     `---`   `-`  `-`

```
• 5. Due Date

You obtain a 120-day note for \$20,000 to use as a down payment on a home. The loan takes place on January 19. The costs include \$789.04 for interest and \$134 in other charges. When is the note due? How much is due at the end of 120 days? (See Example 2.)

• Worked-Out Solution

The note was signed on January 19, 2012. It is due in 120 days.

So, the note is due on May 18, 2012.

At that time the total amount due is

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```           _    _     _  _     ______    _____
____    | || | ||  | \| ||  /_   _//  |__  //
|    \\  | || | ||  |  ' ||   -| ||-     / //
| [] ||  | \\_/ ||  | .  ||   _| ||_    / //__
|  __//   \____//   |_|\_||  /_____//  /_____||
|_|`-`     `---`    `-` -`   `-----`   `-----`
`-`
```
• 6. Leap Year

On January 19, 2013, you obtain a 120-day note. Is the due date on the same day of the year as in Exercise 5? Explain. (See Example 2.)

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```  _____    __   __   _    _    _    _    __   __