1. The following three one -year "discount" loans are available to you:
Loan A: 0,000 at a 7% discount rate
Loan B: 0,000 at a 6% discount rate
Loan C: 0,000 at a 6.5% discount rate

a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide.Which loan would provide you with the most upfront money when the loan takes place?

b. Calculate the percent interest rate or effective cost of each loan. Which one has the lowest cost?

2. Assume that you can borrow 5,000 for one year from a local commercial bank.

a. The bank loan officer offers you the loan if you agree to pay ,000 in interest plus repay the 5,000 at the end of one year. What is the percent interest rate or effective cost?

b. As an alternative you could get a one-year, 5,000 discount loan at 9% interest. What is the percent interest rate or effective cost?

c.Which one of the two loans would you prefer?

3.At what discount loan interest rate would you be indifferent between the two loans?

3. Rearrange the following accounts to construct a bank balance sheet for Second National Bank. What are the total amounts that make the bank’s balance sheet balance? (m=million$)

Demand deposits :million
Cash assets: 5 m
Loan secured by real estate: 30m
Commercial intdustrial loans : 18m
Owner’s capital:6m
Government Securiies owned: 7m
Bank fixed assets:14m
Time and saving depos: 40m
Federal funds purchased: 6m
Other long term liabilites: 2m

Thank you!!!!

Now that the crooks are trying to liquidate them? "The Daily Capitalist Blog" said It is different at the regional and local banking level. Most of them held on to their bad loans as long as they could to avoid recognizing losses, which would require them to either raise more capital or fail. The banking regulators have largely facilitated this approach by suspending mark-to-market rules, requiring them to take TARP money, plus other accounting rules.

See the rest of this post if interested

http://feedproxy.google.com/~r/TheDailyCapitalist/~3/OxKJFw3TBnk/

But these lenders cannot hold back the flood. Both commercial and residential real estate continues to decline in value. There was so much overproduction (malinvestment) that four years after the crash the problem still festers. The result was that these banks tightened up lending standards, were wary of committing to new loans, and kept bad projects on life support hoping that things would turn around. Thus the credit crunch. They are the lenders that one-half of American businesses rely on for credit.

But now is there a growing trend to liquidate these investments

Trying to understand this statement "permanent loans on commercial real estate with amortizations ranging from 15-25 years and maturities of 5-7 years". How can a loan have a 5 year maturity and a 25 year amortization? If it matures at five years, I would’ve thought that is when the loan is due so there would be no further amortization, on the other hand if it is amortized over 25 years, it couldn’t possibly be "mature" at five years.

Clearly I’m not understanding something here.

Thanx for your help,

I can’t believe how misinformed and easily manipulated people are. Some people still think the Dems were solely responsible for the mortgage blowout because they FORCED banks to give bad loans.

What a crock of crap–the banks freely and willingly peddled trillions in bad loans because they were making truckloads of $$$$$$$$$$$$$$.

The sub-primes for minorities were a minuscule portion. Think about it, the are MINORITIES and many of those mortgage had LOW balances because much minority real estate is valued way less than the rest of the nation.

Also, Fannie and Freddie only do RESIDENTIAL mortgages. What about all the commercial mortgages that went belly up.

I am hoping to earn my master’s degree at a German school, but I do not have enough money to pay for the necessary intensive language courses, or for furnishing an apartment. Neither of my parents has good enough credit to take out loans for me, and nobody else in my family is willing to co-sign. Are any alternative options available to finance this, especially paying rent and buying furniture?

A week ago, my parents packed a couple of suitcases and moved from here on the east coast out to Las Vegas. Something happened – something gambling-related I suspect – and now they are stranded on the street in Vegas with no money. My brothers and I sent what we could, which wasn’t much (definitely not enough for a hotel room) and now we are all wrung completely dry. They are the black sheep of the families they came from so it’s hard to get even relatives to help. My brothers and I have a history of having to borrow money from friends to fix their mistakes and now none of us have anyone who can/will lend us anything. The American Red Cross wouldn’t help because they aren’t victims of a natural disaster. The church near them directed them to a homeless shelter, but the nearest shelters are too far from the hotel they just left for them to walk to. while they have a few dollars for food, there is no money for bus or cab fare. Besides, the shelters are in parts of town where they’re likely to get mugged and if their cell phones get taken, we’ll never know what’s happening to them.

My father is a Vietnam vet, but the nearest military base is an air force base (he was in the army) and they told him there was nothing they could do. He has a pension coming, but it isn’t due to come in for weeks. He has used his vet status to take out loans from the military in the past, but he can’t get anymore because he currently has too many out. We tried to get them a payday loan online, but got rejected because we all have terrible credit.

I am desperate. If I really can’t do anything, my parents will be alone and vulnerable on the street for two weeks. My father might make it okay, but my mother is 67 years old and not in the best of health. I can’t stand the thought of her shivering and starving on the street. I really don’t know where else to find answers for this anymore. They’re both in their late 60s and I’m terrified that they will die on the street some way or another.

Please, does anyone have any answers? What else can I do?
If I could get them, I would be on a plane right now. Unfortunately my brothers and I are rather poor and have already sent what little we could.

I will try my relatives anyway, because we’re desperate, but I’m not optimistic because my parents are really good at burning bridges.

Does anyone know of any state or federal laws–or court rulings for that matter–which relate to the notion of tithing 10% of ones income to their church? Specifically those that might apply to the following hypothetical situation:

A member of a family is required to pay monthly supervision fees to the department of corrections, as part of their probation arrangement.
After tallying up total income, subtracting rent, all utility bills, minimum payments on loans and credit cards, and accounting for the 10% tithe for religious purposes, the family does not have enough money left to fulfill the court obligations.

Does the court have the authority to order the family not to pay their tithe? Does the court have the authority to order the family to default on a loan or fail to pay rent, to meet the obligation?

Seeking specific laws, statutes, or court rulings, please. Opinions, while nice, are not what I have in mind.

Im 21 yrs old and i have been abandonded by my husband, or should i get use to saying Ex- husband. This is the saddest part to the story of my life. i need your help to find peace within myself and a diffrent way of looking at things. i was married for about 2 years and a half, this September was going to be 3 years. He went to mexico about 2 years ago to complete his immigration process, he was an illegal immigrant here in the US and i married him out of love, i believe at that time he loved me too. When he went to Mexico i traveled various times to see him and be with him for like a month or two at a time and i would come home to take responsiblilites of my bills. When he needed money i sent him, not only him but his family also, cause its hard over there where they are at. Anyway, i got big loans everywhere to pay for traveling expenses and the lawyer to fix the papers and to pay people over at the Consulant. i got loans every where, from my father like 5,000 and the bank 2,500 and credit cards 2 at 300. well i owed nieghbors, ive been working with my father leveling houses, i work like a guy, i come home tierd and alone. i pay all my bills and at one time i couldnt and was stressing out and lost alot of hair, i would cry to him over the phone all the time. It was hard! it still is. Anyway its been about 8 months since ive seen him and i havent talked to him since hes left his moms house to work in Monterrey, its been 4 months since ive heard from him. his mom knows hes okay cause his uncle works with him, he did commet however he was going to cross over again but as an elligal immigrant and go to New York, but i dont live there so what the heck? His papers have been approved and im just waiting for them to get here, so basically all the loans, and everything we spent and suffered was for nothing. He threw me to a side without giving me a clue y? i was faithful to him, did everything he wanted, i never had much money cause of everything i had to pay, but he had loans in Mexico and i payed them off for him, cause it was supposed to be for us both. I dont understand i got him out of debt to keep myself in debt, i could have used that money for the bills here. i sent him 600 for the loan and 300 cause of the car he missed up, and 50 ever once in a while. right now im hurting for money and so very hurt. i thought marriage was forever and i guess not im 21 and already divorced. i dont understand, im not ugly, im a hard worker, im going to college to better my future, im family oriented, respectful, loyal what more could i have possible done?? when i first realized he didnt care for me i drank so much my parents got scared cause i was always throwing up and sleeping outside like a homeless outside my house with the radio playing the saddest songs. i was loosing everything, i stopped going to church, cause i would ask god sooo much and he never helped me. I just got lost. i havent really met anybody serious but i havent been faithfull anymore and i feel bad but at the same time, i got needs, im not so much sad, more angry, but im hurt still deep inside. i got rid of his close berly like last week, i still have photos i run into that got mixed in with papers i look for, and i get all twisted inside. although he did this to me i think i still love him in some dumb way. the other day my father got a phone call from my mom and he said your mom wants to talk to you and before my mom finished talking to my dad she said " no, u tell her" i asked what and she said "he" wrote to you, it wasnt from him though cause later i found out it was from a company but what im getting at is that when i thought he did write i almost fell into shock, i got all tear eyed and felt sick, what if one day he does come home or if he writes or calls, i dont know how i would react. the other day i called him to "see" if he would answer but again just like all the other times he didnt, but one time he did, he didnt say nothing, i sayd "hello" and he hung up. i havent talked to his family cause i dont really know what to say, i feel emberassed and humiliated, to his family and mine. to myself i look like a failer cause i let college time pass, and i got so in debt, i dont ever get anything for myself and i always have collection on me. he left me so messed up and i dont ever want to be with him again, but the damn feelings are there, y wont they leave. will i ever find someone like him, he was a hard worker, and did everthing for me, when he was here that is, i guess he found some one else, i will to i guess. when his papers get in the mail like his visa so he could be legal here, im just going to look at the papers cause appariantly he didnt care too much about them papers or me. all the heartache, my seperation, my happiness, my struggles, everything, where for those papers, and pretty soon they will be in my hands and put to no use, damn immigration process they destroyed my marriage my happiness, they distroyed who i was.

She approached me this morning and ask if I would get a divorce.
Question Details:She said it was just a piece of paper and was thinking about finances. If she was divorced, she thinks more opportunities will open up for her. She is wanting to start a business and maybe go to college. What would be the advantages and disadvantages . Understand I am in total agreement with her about the piece of paper. We were married in the church and the paper is for the government only. We can put all the property in whichever name that would be most beneficial Any serious input will be appreciated,,,income taxes,,loans..school grants,,scholarships,,welfare,,ect.
come on people,,we can put all the property in my name,,that is the only way that this would work,,as far as cheating the system–I did not write the laws–if I can arrange my circumstances for my benefit ,,how is that cheating–do you realize how many years we took a hit on taxes because we were married
Lori B—we dont need anything related to fraud

When one defaults on a loan or does not repay credit card debt…you are stealing….so, why do so many Christians say this along with bankruptcy, etc…is o.k…

Those who fall into bad financial state because of health or unforeseen circumnstances should be helped by the church to repay their debt…should they not?

Therefore, fundamentalist Christians should not default on loans…because stealing is wrong….yet, according to Newsweek, those who file bankruptcy are equally divided between those who label themselves as Christians and those who don’t.

Quite honestly, I am tired of paying for you people who cannot control your spending and live excessive lifestyles…but, yet you somehow justify it as you do all of the sins that affect yourself…while pointing out everyone elses…why is that?

i’ve been helping out my boy-friend out for the past year.
with his crazy family. see i meet him at church. and i’ve been praying for a christian-solemate and i think i found him.
but his problem is that his stupid a** brother put him in a tight jam.
he his brother bought a run down house thats only worth a ,800
and his stupid a** brother took out 3 loans in his name.the only loan he signed for was the house loan.but the other 2 loans witch
are a 2nd mortgege too finance the house and a second loan for the plumbing he didn’t sign. him witch is my boyfriend and I think the other 2 loans that he didn;t sign were forged. he told me that the house won’t be paid off until 20012. that is when where suposeibly getting married. i’m trying too tell him too claim bankruptcy so the bankruptcy an pay for the house. my boyfriend told me that if he claims bankruptcy willthe sherif go after the and auction it off is that true please help me out.
he signed for is the loan too buy the house.

I am going into my first year of university this year. I am also going to a Univeristy of Alberta, which is a long way from home and in a completly different province. Now that I am on my own, I will be able to attend church every sunday- and I will even be able to be baptized! However my parents are paying for all of the down payments on my loans and dorm leases, and I need there money and co signs for my student loan. Well….they have informed me that if I join the church and get baptized, they will give me no money and will not co sign for my student loan. So in other words, I’m done for and my univeristy education is down the drain. So what should I do, go ahead and join the church and hope that they don’t mean what they say, or give up joining the church to save my education?

I was on WIC but I lost the little booklet thing while I was moving close to a year ago. I was pregnant at the time and my parents were helping me out a lot. Now I was just laid off at work (which I believe has everything to do with being pregnant), found a very part time job at my church for 0 a month, have a son, and really need the help. I am receiving Medicaid, so I know I am automatically eligible. I am just wondering since the counselor was so uptight about me losing the book, should I go to another office and reapply for WIC? I am planning to keep on trying to find a job, but nobody wants to hire me for the short period of time (except my church daycare). Once my child is born, I know I will be able to find a job. I’m also applying for Food Stamp Benefits. (Please don’t tell me to go to my parents, I owe them over ,000 in lawyer fees, loans, etc. and they won’t help me anymore.)

II am a 23-year-old single mother to a wonderful three-year-old little girl. My ex-husband does not pay child support and has not seen her in two years. I am also a full time student. I am trying to finish my degree so that I can get a better job and provide more for my daughter. In addition, I work part-time, about 20 hours a week. Well now, all my financial aid is gone and just working part-time is not enough to pay my bills. I have a hundred dollars in my bank account and I am not getting paid for another two weeks. My rent is due today; it was raised this month to 3. I have tried to get loans from the check cashing places but they say I do not make enough money for that much of a loan. I’ve also contacted my church but they are out of funds for their helping hands program. What other options do I have?
I have tired the payday loan places. I do not qualify for the amount I need.
Also, I live in Houston,TX and they are not taking any housing applications due to funds are being fully used. With most of the people on housing here are from New Orleans from when Hurricane Katrina hit. I have nothing against people from there I just find it unfair that they are using Houston’s housing funds still. Leaving people like me, from Houston, without options.

My fiancee is a US Army Ranger and his deployment date just recently got moved up. As it was, we were already strugglin for a way for me to be able to go up to see him since at the last minute they told us he would not be able to come say his goodbyes. This could not have come at a worse time, and we’ve tried loans, charities, churches, but NOTHING! Airline employees have been willing to help but the ones that are willing do not fly out of our hometown. CAN ANYONE HELP?!?!? The departure is from El Paso, TX and the destination is Syracuse, NY. PLEASE!

Can a religious corporation provide insurance to all of its churches under its control? For instance, if the church’s headquarters is located in New York and it owns or provides loans on physical structures across the USA, can the corporation receive insurance payments from those individual churches? Headquarters will send invoices for payment and the individual church congregations will pay the bill. In case of a catastrophic loss, headquarters will pay for the loss.

But my question is, can an non-profit entity avoid the paying of taxes with such a format?

My fiancee is a US Army Ranger and his deployment date just recently got moved up. As it was, we were already strugglin for a way for me to be able to go up to see him since at the last minute they told us he would not be able to come say his goodbyes. This could not have come at a worse time, and we’ve tried loans, charities, churches, but NOTHING! Airline employees have been willing to help but the ones that are willing do not fly out of our hometown. CAN ANYONE HELP?!?!? The departure is from El Paso, TX and the destination is Syracuse, NY. PLEASE!

I love Mike Church. He does a parody on his radio show of a European Game Show, asking about bailouts, loans. It’s very funny and I cannot seem to find it anywhere? Does someone have a link?

Under the guaranty concept, commercial lenders make and administer the loans. The business applies to a lender for their financing. The lender decides if they will make the loan internally or if the application has some weaknesses which, in their opinion, will require an SBA guaranty if the loan is to be made. The guaranty which SBA provides is only available to the lender. It assures the lender that in the event the borrower does not repay their obligation and a payment default occurs, the Government will reimburse the lender for its loss, up to the percentage of SBA’s guaranty. Under this program, the borrower remains obligated for the full amount due.
–What is meant by this (in lay terms)?

Sorry kind of long…

A friend of mine got married based on financial need. She had just graduated High School, her parents didn’t want to support her anymore (they thought she should work, or take out loans to go to college), so she decided to get a roommate (which was a guy, but there were no romantic feelings, just friends) to help pay the bills. Her parents were very unhappy and pressured her into marrying him by claiming good Christian girls do NOT live with boys before marriage etc. (Probably so they didn’t feel guilty about not supporting her while in school). So I don’t think they were in love when they married.

Anyway, they’ve been married 10 years, and they don’t agree on anything. Shortly after marrying they quit going to church because she didn’t want to go w/o him and he didn’t want to get up and go. In the past few months she has come back to church and has started changing her lifestyle (in a good way), but he’s not very good to her. He insists on sex almost every day, and if she doesn’t, he throws fits,or on some occasions has forced he., He will not allow her to work, he says the woman’s place is in the home. Claiming he works and makes the money and everything else is her job, such as taking care of the kids, all the bills, cooking, cleaning, fixing anything inside the house. He does mow the lawn…but that’s about it. He also "carpools" into work, but wants her to drive to pick him up in the afternoon…which makes no sense it’s not saving any gas, the car is still making a trip…I am sure he’s not cheating on her, she’s caught him looking at pornography before and he has asked on several occasions if she’d be open to a threesome, but from what she has said she’s sure he’s never had an affair… But I don’t think they love each other the way they should…I think it’s only a love because they have 3 kids together.

As a Christian I think she is struggling with whether to stay or get a divorce. There has been no cheating, but the marriage was never based on love. One of the church-goers has suggested to her to leave because God would not want her to be this unhappy, even though he hates divorce he does offer forgiveness. She is very unhappy almost unrecognizable to those who have known before she was married. One other leader in the church has suggested she just make it work, they made the decision (maybe not for love but they did marry) so they need to make it work. She’s come to me about it now, and I don’t know how to approach it. part of me thinks it would be okay and is understandable…but at the same time I see why she would need to suck it up and stick it out. Any ideas?

I have a friend, she is not a real close friend, but she has shown me kindness in the past. This gal (my age, 60) lost her job and has asked me for 00 until her vacation pay and severance arrive. She obviously has absolutely no savings or rainy day funds. (I did not know this about her). I asked if she had contacted our church, and she said that her daughter (age 35, they live together) had not paid back a 00 loan the church had made her a while back (I knew about this loan, the daughter had an arrest warrant out for her for a bunch of unpaid parking tickets, so our church lent her 00). So they obviously are reluctant to ask again at the church because they were not faithful to pay back, even in installments, the loan from before.

And all this indicates to me that they must be living above their means and don’t put paying back loans high on their priority list. (2 strikes?)

But then again, hard times can fall on anyone, and where else does one go, but to one’s friends, especially those who have their act together.

How does one know if one is an enabler, a sucker, or a hard-hearted person (if I refuse).
The daughter does have a job, that’s why I am surprised they have no surplus to fall back on, but the mother has been suspended a couple of times from her job, each time for approximately two weeks, without pay. The only extravagance I see is that the daughter gets a manicure and pedicure regularly and is very overweight, so they may spend a lot on food. But I don’t see them as spendthrifts, still I am concerned that they lack even a hint of financial wisdom.
The daughter does have a job, that’s why I am surprised they have no surplus to fall back on, but the mother has been suspended a couple of times from her job, each time for approximately two weeks, without pay. The only extravagance I see is that the daughter gets a manicure and pedicure regularly and is very overweight, so they may spend a lot on food. But I don’t see them as spendthrifts, still I am concerned that they lack even a hint of financial wisdom.

http://together.wels.net/

Considering they were already millions in debt with loans and spent nearly 100% of all their income, it look like they are in for tough times.
yes, 400,000 members.

I consider myself a fairly ambitous guy, I’m optimistic but not naive. I noticed that most 22(23 this month) year olds aren’t realistically setting achieveable goals for themselves why is that? I’m a college student who plans to go to law school in a couple of years. After which I will be a practicing criminal attorney. With that said I hope to achieve an income of nearly 80-90k after five years starting out in the low 60′s with as little debt as possible. I then want to save up frugally, and instead of buying a home, buy a 5 or 6 unit apartment building live in one unit and rent out the other 4 or 5 units. Then I will repeat to I have a portfolio of maybe a 10-12 properties is this a real achieveable goal, likely even if I plan? How does one get pass the DTI issues associated with financing 10 properties? When they do the loans they just go stated?
So if anything over four units is commerical, then I’ll just keep it down to four units then.

I made around 50,000 this year. I am claiming 0. I am single with no dependants. I donated around 500.00 to my church. I paid around 925.00 in student interests loans. After doing my taxes online with H/R block, I still owe 594.00!! I don’t get it……I haven’t filed my federal yet. Should I try a different website???

The church publishes financial information because of the law. They have over 0 million in savings right now for the 200,000 members. They only spend million a year on an income of million annually. So this gives them around 10 years of a cushion even if all members stopped paying tithing. But their policy anyways is to spend less then they make so they can easily lower expenses when they want. in addition, this is the income for that country only. Salt lake guarantees to support them financially if they are short.

Unlike most churches who are in the red every year with no savings. They either apply for loans or fire staff just to survive.
which part is unfounded?
Right. this is just for the UK. the same exact principles are applied everywhere.

Hello,
I’m having trouble with my husband deciding whether to buy a piece of land or not.
A little while ago, about 2 months, we bought (well we are making payments) half an acre with 10% interest for ,000 in an out of area place. Now, there’s a family at church that wants to transfer us their land which is not that far as the one we are already making payments at, but it’s more expensive. It’s selling for ,000, 12% interest, irregular lot but about half an acre. My husband wants to buy it because he says it would be another asset that we would have in the future, and later on, we might re-sell it. BUT, I’m not very convinced.

a 12% sounds too high for me. He doesn’t have good credit right now, but it’s been a year since we are trying to fix it….and we are getting there. Right now it’s 650…..and in the next two years we are planning on getting loans and paying them back always on time so that it can go up at least to 750 if possible. My thinking is that we could get a loan once the credit is fixed for a much lower interest rate and bigger lot. (if not, we’ll stay with the one we have)……
but since I can see the economy is not very good right now..and we never know what could happen if it be possible to get a loan in the future or not…..
please let me know…..should i agree with my husband or tell him that the interest rate is too high and it’d be better for us to while 2 years at least and fix the credit?

I will be leaving for college soon and I needed more money for school. I have some. I applied for many different grants, my church will be helping me out,my parents,family and myself of course., oh yeah loans.

Despite overwhelming information about Obama’s past associations with unrepentant 60′s terrorist Ayers, his 20 year membership with a Black Liberation Christian Church and his connection with Acorn who pressured banks to make bad loans, we have yet to learn how this will be detrimental to the foundations of the country.

http://www.infidels.org/library/historical/andrew_white/Chapter19.html

I would say its position on interest.

It was called the Dark Ages for a reason. Innovation crawled at a snail’s pace for a reason. Hundreds of millions of people lived their lives in bondage, unable to escape feudalism, beause they could not borrow money to start their own farms or markets, because credit was not available, because taking interest on loans was considered by the Church to be a deadly sin.

Only cities where merchants ignored this tenet thrived and gave rise to merchant classes. Only when most cities bucked Church law did a middle class start to arise in Europe.

If not for this barrier to credit, life arguably would NOT have been "nasty, brutish and short" for most people by the times Hobbes wrote.

Does the indirect but definite and tangible harm done to hundreds of millions over several centuries trump the direct harm done to thousands over two centuries?
Naz read up – they interpreted usury to mean any interest, for hundreds of years.

to block students of Christian colleges from receiving loans? You just KNOW that eventually they’re going to call it a violation of the separation of church and state.