pRomIssOrY NoTe..

THIS IS THE LAST OUR TOPIC IN BUSINESS MATH...
ABOUT PROMISSORY NOTE ..
THE PROMISSORY NOTE IS SHOWN THERE..

Promissory note or notes in short are debt instrument :

• Use for who wants to borrow money or lend money to another person or party.

Importance :

• To the negotiable instrument in the economy.

Promissoy note can calculated use formula

MATURITY VALUE = FACE VALUE+INTEREST DUE

fOr ExAmPlE :

Rm2500 20 April 2005

Sixty days after date i promise to pay to the order of Mohammed Salleh

Ringgit Malaysia : Two thousands five hundred only

for value received with interest at the rate of 8.00%

per annum until paid.

No.1234 Due :19 June 2005

Mat Hassan

(a) WhO Is tHe MaRkEr tHe nOtE ?

the mAkER is MaT HaSsAn

(b)who iS tHe pAyeE Of ThE nOtE?

cAlCUlAtEd ThE MaTuRiTy VaLuE oF tHE nOtE,,

mAtUrITy VaLuE = fAcE + iNtErEst dUe

= 2500+2500(0.08)(60/360)

=Rm2533.33

tHe ImPoRtAnT tHing In LeArNiNg BuSiNeSSmAth

hUhUhu..

WHy i SAiD ThaT??

bEcAuSe..

ItS iMpOrtAnt La..

aN eXaMPlE..

wHeN wE In EXaMiNaTiOn..

AnD aLsO..

dO a CaLcUlAtIon..

We NEeD iT..

hMM.. MaTh La kAtEkN.. hUhU..

StUdY WiT AnIs.. LiKe StUdY gRoUp La..

hMM.. TeSt aRoUnD a cOrNeR.. FuH!!!! HmMmMm...

i WiTh mY FrEn,aNiS StUdy AbOuT MaRkUp MaRk DoWn,sImPlE iNtErEsT,aNd AlSo BaNk DiScOuNt.. Im sAtiSFiEd StUdy In gRoUp BeCaUsE i CaN MoRe UnDeRsTaNd.. i AlSo CaN cOmPaRe My OpInIoN wItH mYfReN..sO,WiTh ThAt i FeLt I lIkE mOrE KnOwLEDgaBlE..hEhE...nOw.. i AlSo cAn ReMeNmBeR wHaT hAd MiSS ChEnG tEaCh mE..i AnD aNiS MeMoRiEs All THe fOrMulA ANd I aNd AnIs HoPe CaN aNsWer VeRy WeLL anD suCcESfUl..HuhU

sOmE of ThE fOrMuLa :

fOr MaRkUp AnD mArK dOwN..

R= C+NP+OE

R= C+M

bAnK dIsCoUnT..

D= Sdt

P= S(1-dt)

SiMpLe InTeReSt..

I=Prt

S=P(1+rt)

So, nOw I aNd AnIs MoRe MeMoRiES aLL tHe fOrMulA aNd mOrE EaSIeR to CaLcULaTe AbOuT bUSiNeSSMaTH..

LeArNed NeW tHiNgS -> bAnK diScOuNt

ToDaY .. Im ReAliSed AbOUt We AcTuAllY BeeN cHeAtED bEcAuSE oF bAnK dIsCOuNt..
DiD u All KnOwN??
AbOuT sImPlE inTerEst AnD BaNk DisCoUnT???
aCtUaLLy.. tHe VaLuE iTs lIKe SAmE bUt... TruLy vAlUe BeTwEEn sImplE iNtEReST aNd BaNk DiScOuNT vEry DiFfEreNcES wHeN we PaId iT aFtER we BoRRoWed..

FoR exAmPlE WE cAn SEE:
When we want to borrows RM 1000 with a bank.. rate charged 4%
with simple interest we get RM 1000 must paid RM 1010..

But???

When we want to borrows RM 1000 with a bank.. rate charged???
with bank discount we get RM 990 with a bank.. must paid RM 1000
will said same percent..
But.. now calculated it.

I=Prt
10=990 r(3/12)
r= 4.04%
r= the rate charged percent .

Now we can see right???
Think about it,,
ok..

STuDy GrOuP

i Do study GrOuP.. wItH mY FrEN.. AnIs, HaSnA n ME.. bUt WE DiDnt Get ThE aNSwER.. oNlY gEt THe AnSwER qUeStIoN 5,6 AnD 8..ThE qUeStIon IS SiMpLE bUt We DiDnT gET tHe ANsWer.. AlThOuGht, WE uSE tHE fOrMuLa GiVen..

tHE OtHER OnE tHe QuEsTiOn My FriEnDS AnD ME dIdNt GeT :

No. 31 .. PaGe 35
A debt of RM900 ON 12 Febuary 2005 became RM 1000 on 25 May 2005
(a) What was the interest rate being charged using the banker's Rule?
(b) What rule be the value of the debt on 20 March 2005 using Banker's Rule??
huhuhu.. I DidNt Get ThE aNwEr..

ToDaY, i Was sTuDyInG SiMpLe InTerESt..

Hmm.. sO.. dIffIcUlT.. tO dO thESE eXeRcIseS..
I,m TrIED.. BuT dIdNt GeT the RiGht AnSwER..
hUh!!

i lOvE BuSSiNeSS mAtH

hMM.. I eNjOyED sTuDY ThIs..
BuSSiNeSS mAtH
I lEaRnEd A NeW thINgS..
hOw To cAlCulAtEd AnD wHaT iT iS?
sUch As..
InTeResT.. SiMpLe InTeReSt..
mArKUp aNd MaRk DoWn..