Chapter 4 Introduction
Notes Receivable
During the Gold Rush, miners needed a way to exchange their gold nuggets and dust for coins. Merchants
needed a way to pay for and obtain goods ordered from stores in the East. So in 1852, Henry Wells and
William Fargo opened their first banking office in San Francisco – Wells Fargo. They began providing
banking services to the miners, merchants, and farmers who were settling the West. The company used
stagecoaches to transport gold, mail, and merchandise throughout the West.
Today, Wells Fargo leaves the delivery of mail to the U.S. Postal Service and is even more widely being
delivered through electronic devices. One of their main services today is loaning money to depositors and
others to buy items such as cars or houses. The bank’s notes receivable are entered in the bank’s
accounting records and the interest becomes revenue for the bank.
Instructions: Using your iPad as a research tool, navigate to the Wells Fargo website to learn more about the
services they offer to their depositors. Record your findings by responding to the prompts/questions below.
Under the ‘Personal’ tab, click Loans and Credit.
1. What are the current rates for purchasing a new and used car from the dealer?
2. What is meant by the term, refinance?
a. In what situation might a refinance be a good option for a depositor?
3. How long does the depositor have to pay off the loan?
4. If a depositor takes out loan to purchase a new car for $25,000, will the actual amount spent after
the lifespan of the loan equal $25,000? Explain.
Under the ‘Personal’ tab, click Student Loans
1. Under ‘Undergraduate Loans’ click Traditional Colleges and Universities
2. What are some of the benefits of a Wells Fargo Student Loan?
3. Define cosigner.
4. List the current rates for a student loan.
5. Is there a lifetime limit for a Wells Fargo loan? Explain.
6. Scroll down to the student loan debt repayment calculator and click the corresponding link.
a. Navigate to a university or college website of your choice.
b. What is the tuition PER SEMESTER?
c. Calculate the total amount owed after 4 years at this institution. (Remember: 8 semesters
total)
d. Using the total from letter ‘C’, fill out the Student Loan Debt Repayment Calculator to the
best of your ability.
i. NOTE:
1. Do not use commas in your numbers.
2. Enter ‘0’ for graduate school.
3. Estimate how much you expect to make in your career (right out of school).
7. What is your total interest and principal paid amount?
8. What is your monthly loan payment?
9. Thoughts? Reaction? Are you surprised?