promissory note n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Promissory NotE PowerPoint Presentation
Download Presentation
Promissory NotE

Loading in 2 Seconds...

play fullscreen
1 / 9

Promissory NotE - PowerPoint PPT Presentation


  • 423 Views
  • Uploaded on

Promissory NotE. GT10103 Business Mathematics Prepared by : Kasturi Rajoo Alfera Jausin. Learning Objectives. Explain the meaning and list the main features of a promissory note, Compute the face and maturity values of promissory notes,

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Promissory NotE


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript
    1. Promissory NotE GT10103 Business Mathematics Prepared by : KasturiRajoo AlferaJausin

    2. Learning Objectives Explain the meaning and list the main features of a promissory note, Compute the face and maturity values of promissory notes, Compute bank discounts and the proceeds obtained when a promissory note is discounted. Compute simple interest rate that a bank earns when a promissory note is discounted.

    3. What is Promissory Note?? • or notes in short are debt instruments (short-term debts). • Negotiable instruments  signed document that promises the bearer a stated total of money at a future date/on demand. • Written promise  one person/party  repay a loan/debt on specified future date  another person/party. • Two types interest bearing notes and non-interest bearing notes.

    4. Example Promissory Note.

    5. The features in PN.

    6. The formula. To find the maturity value :- Maturity value = face value + interest due To find the face value :- S = P(1 + rt) I = Prt, where P is face value To find the bank discount :- D = Sdt

    7. To find the proceeds :- P = S-D P = S-Sdt P = S(1-dt) To find the equivalent simple interest rate :- r = d/1 – dt To find discount rate :- r = r/1 + rt