ipi6 



Farm Loan Act, Etc. 



Continucti from last issue 



Amortization Plan of Repaying Loans 



It has been said that all loans are to 

 be repaid on the anioiiization plan. 

 This plan calls for a number of fixed 

 annual or semi-annual payments, which 

 include not only all interest and 

 charges due the bank, but the principal 

 as well. These payments are so calcu- 

 lated as to extingui.sh the debt in a 

 given number of \ears. After five years 

 the borrower has the right on any in- 

 terest date to make additional pay- 

 ments on the principal in sums of .$25 

 or any nmltiple thereof, thus discharg- 

 ing the debt more quickly. The table 

 given below illustiates how a loan of 

 •$1,000 bearing interest at 5 per cent 

 would be retired in twenty years by 

 an annual payment of -$80.24. A study 

 of the columns shows how from year 

 to year the interest is reduced and the 

 proportion of the payment which goes 

 to discharge the principal steadily in- 

 creases. The final payment cancels 

 the debt: 



Total Amount of 



ANXl^AL annual Interest at Paid on principal 



PERIODS payment 5 per cent principal still unpaid 



1 .$80.24 $50.00 $30.24 $969.7G 



2 80.24 48.48 31.75 938.00 



3 80.24 46.90 33.34 904.67 



4 80.24 45.23 35.01 869.66 



5 80.24 43.48 36.76 832.90 



6 80.24 41.64 38.59 794.31 



7 80.24 39.71 40.52 753.79 



8 80.24 37.68 42.55 711.23 



9 80.24 35.56 44.68 666.56 



10 80.24 33.32 46.91 619.C4 



11 80.24 30.98 49.26 570..39 



12 80.21 28.51 51.72 518.67 



13 80.24 25.93 54.31 404.36 



14 80.24 23.21 57.02 407.34 



15 80.24 20.36 59.87 317. Ki 



16 80.24 17.37 62.87 2S1.III 



17 80.24 14.23 66.01 218.511 



18 80.24 10.93 69.31 119.28 



19 80.24 7.46 72.78 76.50 



20 80.33 3.83 76.50 



Toltil. . ..$1604.89 ?604.81 SIOOO.OO 



Funds Available for Loans 

 .\fter a Federal land bank has loaned 

 on first mortgage $50,000, it can obtain 

 permission from the F^arni Loan Board 

 to issue $50,(100 in farm-loan bonds 

 basetl on these mortgages, sell such 

 bonds in the open market and use the 

 money thus obtained to lend on other 

 mortgages. This process of lending on 



BETTER FRUIT 



P"S'^ ^5 



First National 

 Bank 



HOOD RIVER, OREGON 



A. D. MOE - - 

 E. O. BLANCHAR 



President 

 - Cashier 



Capital and Surplus $125,000 

 Assets Over $500,000 



Member Federal Reserve System 



Winter is 

 comind 



Cold, rainy days— then 

 you'll appreciate t.he 

 cosy, cheery warmth 

 of a good oil heater. 



Can be carried easily and 

 safely from room to room. 

 One gallon of Pearl Oil 

 gives 9 hours of steady, 

 odorless, clean heat. 



Perfedion 



Oii Heaier 



Dealers Everywhere 



STANDARD OIL COMPANY 



(California) 



"BLUE RIBBON" 



Grimes Golden and Jonathan 

 Apples 



Winter ileitis and Bur re D'Jinjou 



Pears 



In straight or mixed cars. 

 All orders given careful and prompt attention. 



Wire for Prices. 



Yakima County Horticultural Union 



FRCD EBERLE. Manager 



NORTH YAKIMA, WASHINGTON 



WHEN WRITING ADVICKTISERS MENIIUN BKTTCR FRUIT 



