Name: Rojean C.

Babaran
Year & Section: FM 3-5

Activity 1 lesson 1

Determine what type of credit is described in the following situation. (2pts each)

Credit of Limited Acceptability 1. (As to Acceptability) Credit instruments are

acceptable means of payment
only within a restricted field.
Long term Loans 2. (As to Maturity) These are payable within a specified period of
time usually
more than five years.
Discount Load 3. (As to Form) This type of credit allows the lender to collect interest in
advance.
Mercantile or Commercial Credit 4. (As to Type of User) This loan is usually extended
to persons dealing in
COMMERCE and TRADE and is used to finance the purchase of inventories.
Unsecured Loans 5. (As to Security) This is also known as character or clean loan
since it does
not require a collateral against loan.

SAQ 1: Lesson 1

The following describes the different types of credit. Match Column A with Column B.
Write the
correct letter before the number.
Column A Column B

b 1. Agricultural credit a. Character/clean loan

I 2. Consumer loan
c 3. Discount loan
J 4. Investment credit
d 5. Long-term loan
i 6. Non-self-liquidating loan
g 7. Secured loan
h 8. Self-liquidating loan
e 9. Short-term loan
a 10. Unsecured loan
b. Development of agricultural land
c. Interest paid in advance
d. Loan payable after 5 years
e. Loan payable within a year
f. Loan payable within 3-5 years
g. Loan with collateral
h. Payments for loans comes from
income of the amount borrowed
i. Payments for loans comes from
personal income of the borrower
j. To obtain fixed capital
l. Used for personal needs
SAQ 4: Lesson 2
1. Identify whether the following checks are stale, post-dated or dated check. Assume a
30-day period/mo.
Date check is presented for payment or deposit: July 3, 2020
Date of the Check Aspect of Check
1 July 24, 2020 Post-Dated Check
2 December 31, 2019 Stale Check
3 September 11, 2020 Post-Dated Check
4 February 13, 2020 Dated Check
5 June 30, 2020 Dated Check
6 January 1, 2020 Stale Check
7 August 4, 2020 Post Dated Check
8 April 11, 2020 Dated Check
9 March 15, 2020 Dated Check
10 May 21, 2020 Dated Check

2. Compute for the Net Proceeds of the loan principal amount of P600,000 and 250,000
if the interest discount is 25% per annum, with service fee of 3%; insurance fee of 2%
and other charges of 1%. Use the Loan Release Sheet below.

LOAN RELEASE SHEET

Principal Amount Php 850,000
Less:
Unearned Interest Discount 212,500
Service Fee 25, 500
Insurance Fee 17,000
Registration Fee 0
Fire Insurance Fee 0
Other Charges 8,500 263,000
Net Proceeds Php 586,500