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