1. You want to remodel your kitchen and the builder estimates it will cost $50,000. You start with $15,000 in your bank account. You get a loan from a commercial bank for $45,000 and they deposit the $45,000 into your account so that your total balance is now $60,000. You check to the builder for $50,000 and so have $10,000 left over for your other expenses. The builder then deposits the $50,000 into their bank account and remodels your kitchen.