Loan Project ► Types of loans ► Personal loan: Money received by the borrower is paid back in monthly installments, including monthly interest on outstanding.

Slides:



Advertisements
Similar presentations
Benefits of WDP using technology in business E-commerce Websites.
Advertisements

LOAN WORKOUT PROJECT Background, Class Project & Preliminary Report Information January 21, 2009.
Practical Car Ijarah.
Sullivan PreCalculus Section 4.7 Compound Interest
Copyright © 2008 Pearson Education Canada 7-1 Chapter 7 Interest.
Mortgage Loans Fixed Income Securities. Outline  What is a mortgage?  Major Originators  Alternative Mortgage Instruments  Prepayments and their impacts.
Chapter 5 Section 5.4 Amortized Loans. An amortized loan is a type of investment (for the loaner) in which the amount of the loan, plus the interest is.
McGraw-Hill/Irwin ©2001 The McGraw-Hill Companies All Rights Reserved 5.0 Chapter 5 Discounte d Cash Flow Valuation.
Consumer Banking Dollars and Sense. Interest Rates – Rules of Commercial Banks – Interest rates charged for loans higher than Savings Banks and interest.
Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.
Financing Your Business
Welcome to Acadia Bank Presented by Team 1 Jennifer Copenhaver Cheryl Kleiman Kelly Peck Darby Sinding Sample pages from report.
1 Project Description  Business Background  Class Project.
Spreadsheet Software as a Teaching Tool for Introductory Mathematics Courses Shuzo Takahashi Arizona Winter School 2002 March 10, 2002.
Thinking Mathematically
Project 1 Introduction. Bank Loans Two types of loans: - Personal - Commercial.
Expected Value- Random variables Def. A random variable, X, is a numerical measure of the outcomes of an experiment.
Project 1: Loan Workouts. Can someone briefly describe the loan workout project?  Arcadia Bank is in a commercial loan  Borrower is in default  Bank.
Presentations  For presentations: Bring 2 copies of slides, one to turn in (6 slides per page) and one copy in case of computer problems (1 slide per.
Math 115a – Project 1 Loan Work Outs. Project 1 – Loan Work Outs Bank PeopleBusinesses Deposit extra cash in bank Commercial loan Personal loan.
SOURCES OF FINANCE.
Financial Applications -Mortgages Choi. Mortgages  The largest investment most people ever make is buying a house. Since the price of many houses in.
Discounted Cash Flow Valuation.  Be able to compute the future value of multiple cash flows  Be able to compute the present value of multiple cash flows.
FORECLOSURE & MORTGAGE DEBT FORGIVENESS WHAT ARE THEY? WHY ARE WE CONCERNED? IRS Pub 4702 IRS Pub 970.
Jennifer Jones Lindsay Yoshitomi Leslie White Jeff Guba Acadia Bank.
RECAPE LAST CLASS. FINANCIAL SECURITIES & MARKETS IF THE FIRM DECIDE TO ARRANGE ADDITIONAL FINANCING, THEY HAVE TWO CHOICES: 1. TO SEEK ADDITIONAL OWNERS.
Section 4C Loan Payments, and Credit Cards Pages C.
Section 5-1 Monthly Payments. What do you know about Credit? Credit is whenever goods, cash, or services are provided in the promise to pay at a future.
Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.5, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.
Risk, Return, and the Time Value of Money Chapter 14.
Forward rate agreements (FRAs). Forward rate agreement is a forward contract on interest rates between two parties, typically a bank on one hand and a.
Section 4D Loan Payments, and Credit Cards Pages
Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.
Islamic Modes of Financing Diminishing Musharakah.
Speculative Bubbles Holland
Private Mortgage Lending How You Can Securely Earn Double-Digit Interest Rate.
Accounting for Long Term Liabilities Ch 10 – Acc 1a.
Present Value Present value is the current value of a future sum.
Investment To put money to use for something offering potential profitable returns (as in interest, income, or appreciation). Appreciation = the value.
A list of numbers following a certain pattern a 1, a 2, a 3, a 4, …, a n, … Pattern is determined by position or by what has come before 25. Sequences.
Sources of Finance Own funds Profits Loans Overdraft Hire purchase Leasing Selling assets Venture capital Shares Debentures Government Grants.
Treasury & fund Management Fund Management in Money Market.
By Rahul Jain. Hire Purchase is a method of acquiring assets without having to invest the full amount in buying them. Typically, a hire purchase agreement.
The Time value of Money Time Value of Money is the term used to describe today’s value of a specified amount of money to be receive at a certain time in.
Credit is the privilege of using someone else’s money for a period of time and is accepted as a substitute for cash Creditor is any person/ business that.
WELCOME TO MAT116 Fall Instructor Information  Lawrence Morales  Office: 5137  Phone: 
Chapter 16 What is Credit?. Borrower(Debtor) – Someone who borrows money Creditor – Person or company who loans money or extends credit.
Today’s Schedule – 11/28 PPT: Money Supply & Banking Rdg: Pitfalls of Credit Card Debt Bonus Quiz: Money HW: Read 17.2/17.3 Start Studying for Unit 5 Test.
An Overview of Personal Finance The Time Value of Money –Money received today is worth more that money to be received in the future –Interest Rates Nominal.
Copyright © 2011 Pearson Education, Inc. Managing Your Money.
Doing Simple Interest Calculations Extracted from regular lecture notes by Dr. B. C. Paul This slide show is copyrighted in 2007.
Annuities, Loans, and Mortgages Section 3.6b. Annuities Thus far, we’ve only looked at investments with one initial lump sum (the Principal) – but what.
210 – Payment Function. Buying a Car – The ABC’s So you want to buy a car! We must first look at all the variables! Car Price, Down Payment, Interest.
Copyright © 2008 Pearson Education Canada 8-1 Chapter 8 Simple Interest Applications Contemporary Business Mathematics With Canadian Applications Eighth.
Ms. Young Slide 4-1 Unit 4C Loan Payments, Credit Cards, and Mortgages.
Aim: Money Matters: Home Ownership Course: Math Literacy Aim: How does money matter? Home ownership – the big Kahuna! Do Now:
Understanding Car Payments. Mark wants a go-cart. Mark wants a go-cart. A go-cart costs $500. A go-cart costs $500. Mark only has $100. This is his Down.
Mortgages. A mortgage is a loan that is secured by property. Mortgages are large loans, and the money is generally borrowed over a large amount of time.
Personal Finance Section Credit and Debt. Personal Finance Section Credit gives extra punch to your purchasing power; but reckless handling of credit.
Significant debt needs of a company are often filled by issuing bonds. BondsCash Bond Liabilities.
TYPES OF BORROWING, PART I 5.1 Students can identify different types of borrowing and explain the process of paying back borrowed money.
Time Value of Money Loan.
effects of changing conditions
DO NOW 12/5/16 Use Google to define these terms IN YOUR NOTES Credit
Simple Interest By: Ms. Naira.
The Housing Market Crash 2006 What happened?
Credit Default Swap (CDS) Basics
Average Credit Card Debt Average Minimum Payment
Loans.
Discounted Cash Flow Valuation
Presentation transcript:

Loan Project ► Types of loans ► Personal loan: Money received by the borrower is paid back in monthly installments, including monthly interest on outstanding principal ► Commercial loan/business loan: ► Keeps the loan for a fixed period of time. ► Returns the principal as a lump sum payment. ► Makes regular payment of interest on the loan

Terminology used ► Full value of the loan: Total amount of money borrowed ► Foreclosure: Bank takes over the ownership of a particular asset when the borrower fail to make the payments, and sells the asset in the market ► Loan Work out: ► Set up a new schedule of interest payment ► Temporarily deferring interest payment ► Foreclosure Value: Money recovered when bank foreclosed on the loan ► Default Value: The amount recovered if the work out fails

Team Project ► You are loan officers working for the Acadia Bank Loan Information ► You will be given full value of the loan ► Foreclosure Value of the loan ► Default value of the loan

Borrower information ► Years of Experience ► Education level ► Economy at the time of workout

? Should Acadia Bank enter into a work out agreement with the borrower or should it foreclose on the loan?

Good Luck!

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.