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LOANS

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6 views2 pages

LOANS

Uploaded by

evangelistabazil5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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11/11/2024

Objectives: Two Content Layout with Table

1. define loan and its related terms;


2. illustrate business loan and consumer loan;
and
GENERAL MATHEMATICS
3. distinguish business loan from consumer
loan.

According to Max of the movie The Adventures


of Sharkboy and Lavagirl TERMS:
§Collateral – assets used to secure the loan. It
§consumer loan which is money lent to
may be real estate or other investments
“Dream a better dream, an individual for personal or family
§Term of the loan – time to pay the entire loan
purposes.
then work to make it real”. §business loan is money lent specifically
§Guarantor – a person who guarantees to pay
for someone else’s financial obligation if the
for a business purpose. It may be used to borrowers fail to do so.
start a business or expand a business.

Activity 1
Identify whether the following statements are TRUE or FALSE. Write T if the underlined word/s
. is/are correct for the statement, otherwise write the correct word/s to make the statement correct.
1. Business loans are money used to finance a business or to start a new business.
2. Credit cards and car loans are example of business loans.
3. Guarantors are the assets used to secure a loan which include real- states or
investments.
4. Consumer loan has higher interest rate than business loan.
5. Consumer loan has longer term of payment than business loan.

1
11/11/2024

TERMS: TERMS: ExAMpLE 1:


§Amortization- is the process of paying off debt with
regular payments made over time.
§ Collaterals- are assets that can secure a loan.
Mr. Garcia borrowed ₱1,000,000 for the
§ Fixed-rate mortgage- is a type of mortgage where
§Mortgage- is a loan from a bank or other financial interest remains constant. expansion of his business. The effective
institutions that help a borrower purchase a home or
a car.
§ Obligation- is what parties may do under a rate of interest is 7%. The loan is to be
§Mortgagor- is the one who borrows a mortgage.
contract or terms of agreement.
repaid in full after one year. How much is
§Mortgagee- is the one who lends a mortgage.
§ Outstanding balance- is any remaining debt at a
specified time. to be paid after one year?

Mr. Garcia borrowed ₱1,000,000 for the expansion of his business. The
A person borrowed ₱1,200,000 for purchase of a car. If his monthly
effective rate of interest is 7%. The loan is to be repaid in full after one ExAMpLE 2: payment is ₱31,000 on a 5 year mortgage, find the total amount of interest.
year. How much is to be paid after one year?
Given:
Given: Find F: A person borrowed ₱1,200,000 for P = 1,200,000
P= 1,000,000 F = 𝑃(1 + 𝑖) Monthly payment = 31,000
n=1 F = 1,000,000(1 + 0.07) purchase of a car. If his monthly payment Total amount: (31,000)(12 months)(5 years)
i = 7% or 0.07 F = 1,070,000 is ₱31,000 on a 5 year mortgage, find the = 1,860,000
Total interest : total amount – amount of mortgage
An amount ₱1,070,000 must be paid
after one year total amount of interest = 1,860,000 – 1,200,000
= ₱660,000
The total amount of interest is ₱660,000.

Activity 2
Fill each blank with correct term/s which are related to consumer and business loans.
1.____________ is the process of paying off debt with regular
payments made over time.
2.____________ is a loan from a bank or other financial institutions that
helps a borrower purchase a home or a car.
3.____________ is the one who borrows a mortgage.
4.____________ is the one who lends a mortgage.
5.____________ are assets that can secure a loan.

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