3. Define the following terms a. Secured loan b. Amortized loun c. Real estate loan d. Collateral e. Line of credit . Balloon payment 4. How are loans classified as short-term, intermediate-term, and long-term loans? List the types of assets that might serve as collateral for each. 5. Assume that a $200,000 loan will be repaid in 30 annual payments at 9 percent annual interest on the outstanding balance. How much principal and interest will be due in the first payment if the loan is amortized with equal principal payments? If it is amortized with equal total payments? How would these figures change for the second payment in each case? Use Appendix Table 1 to find the amortization factor for the equal total payment case. 6. What are the advantages and disadvantages of a 10-year loan with a 50 percent balloon payment versus a completely amortized loan of the same amount, term, and interest rate? 7. Identify the different sources of agricultural loans in your home town or home county. Which types of loans does each lender specialize in? You might interview several lending institutions to learn more about their lending policies and procedures. 8. Select one agricultural lender and find out the rates and terms currently available for an intermediate-or Jong-term loan. Are both fixed and variable-interest rate loans available? What loan closing fees or other charges must be paid? 9. Assume you are a beginning farmer or rancher and need capital to purchase breeding livestock. What information and material would you need to provide a lender to improve your chances of getting a loan? What lenders might be willing to finance you? 10. List several reasons why a request for a loan by one farm operator might be denied while a similar request from another operator is approved. 11. Explain the difference between liquidity and profitability. Give three reasons why a profitable farm could experience liquidity problems