# Single Payment Loan-BM

Brainstorm
Where can you find the funds for starting up the business?
1 / 22
Slide 1: Tekstslide

In deze les zitten 22 slides, met interactieve quizzen en tekstslides.

Lesduur is: 1 min

## Onderdelen in deze les

Brainstorm
Where can you find the funds for starting up the business?

#### Slide 2 -Woordweb

Chapter8.1:Single Payment Loans
• Describe a single-payment loan
• Compute the maturity value and interest rate of a single payment loan
• Evaluate the due date for loan payment

#### Slide 3 -Tekstslide

Chapter 8.1: Single Payment Loans
Pages 305-307

#### Slide 4 -Tekstslide

Single payment loan
A single-payment loan is a loan that you repay with one payment after a specified period of time.
A business may be short of funds and need to borrow money to meet its payroll or pay for inventory and supplies.

#### Slide 5 -Tekstslide

Definitions
• A promissory note is a written promise to pay a certain sum of money on a specific date in the future.
• The maturity value of the loan is the total amount you must repay. It includes both the principal and the interest owed.
• A loan’s term is the amount of time for which the loan is granted.
1. Ordinary interest is based on a 360-day year.
2. Exact interest is based on a 365-day year.

#### Slide 6 -Tekstslide

What is the significance of a single payment loan?

#### Slide 7 -Open vraag

What is a written promise to pay a certain sum of money on a specific date in the future?
A
Cheque
B
Promissory note
C
Invoice
D
Memo

#### Slide 8 -Quizvraag

What is the total amount you must repay?
A
Promissory note
B
Single payment
C
Maturity Value
D
Multiple payments

#### Slide 9 -Quizvraag

Formula
Interest = Principal × Rate × Time
Ordinary Interest = Principal × Rate × Time/360
Exact Interest = Principal × Rate × Time/365
Maturity Value = Principal + Interest

#### Slide 10 -Tekstslide

Example 1
Anita Sloane’s bank granted her a single-payment loan of \$7,200 for 91 days to pay for new merchandise for her candle shop. Determine the maturity value of the loan if the rate is (a) 6% ordinary interest or (b) 6% exact interest.

#### Slide 11 -Tekstslide

Solution
Step 1: Find the ordinary interest owed.
Ordinary Interest = Principal × Rate × Time/360
\$109.20 = \$7,200.00 × 0.06 × 91/360
Step 2: Find the maturity value with ordinary interest.
Maturity Value = Principal + Interest
\$7,309.20 = \$7,200.00 + \$109.20
Step 3: Find the exact interest owed.
Principal × Rate × Time/365
\$7,200.00 × 0.06 × 91/365
= \$107.704 = \$107.70 Exact Interest

#### Slide 12 -Tekstslide

Step 4: Find the maturity value with exact interest.
Maturity Value = Principal + Interest
\$7,307.70 = \$7,200.00 + \$107.70

#### Slide 13 -Tekstslide

Compute the (a) interest and (b) maturity value for each loan.
1. Parker Logan purchased a new surfboard costing \$600 and financed it at 9% ordinary interest for 90 days.

#### Slide 14 -Open vraag

Give the steps of calculating the interest and maturity value of a loan.

#### Slide 15 -Woordweb

Example 2
Claudia Valdez took out a single-payment loan for \$1,500.00 at 7.8% ordinary interest to pay her federal income tax bill. If the loan’s maturity value is \$1,529.25, when would Claudia have to pay back the loan if she took it out on March 1?

#### Slide 16 -Tekstslide

Solution
Step 1: Find the interest
Maturity Value = Principal + Interest or Interest = Maturity Value – Principal
Interest = \$1,529.25 – \$1,500.00 = \$29.25
Step 2: Find the time of the loan in days, t.
Ordinary Interest = Principal × Rate × t/360
\$29.25 = \$1,500.00 × 0.078 × t/360
\$10,530 = \$117t
90 = t

#### Slide 17 -Tekstslide

Claudia would have to pay back the loan in 90 days.
Step 3: Find the due date. Use the Elapsed Time Table on page A10. March 1 is the day
60 + 90 days = day 150, which is May 30.

#### Slide 18 -Tekstslide

How long would it take a construction loan for \$548,048 to earn interest of \$50,000 at 9% exact interest?

#### Slide 19 -Open vraag

Let t = How long it would take in days
\$50,000 = \$548,048× 0.09 ×t/365
\$18,250,000 =\$49,324.32t
370 = t

#### Slide 20 -Tekstslide

How can you calculate the time to pay back?

#### Slide 21 -Woordweb

Give the main points of the lesson.