1) David and Joan Mead have a home with appraised value of $380,000 and a mortgage balance of $215,000. The SC Credit Union is willing to lend money at a loan-to-value ratio of 80%, how big a home equity credit line can David and Joan obtain? Are they qualified for the mortgage interest deduction for this second mortgage if they itemize their deduction on the tax return?

2) Assume you borrowed $100, find the finance charges on an 8 percent, 18-month, single-payment loan when interest is computed using the Simple Interest Method. Find the finance charges on the same loan when interest is computed using the Discount Method. Determine the APR in each case