September 26 days october 31 days november 30 days

This preview shows page 2 - 5 out of 12 pages.

September 26 days
October 31 days November 30 days December 31 days January 31 days February 28 days March ??? Total = 180 days Answer: March 3 Banker’s rule ↳ Uses exact time for identifying the due date, but uses 360 days as the equivalent for 1 year for the computation. ↳ When computing for interest same as ordinary time ↳ When computing for due date same as exact time Problem 1: Interest rate: 1.3% annual interest Principal: 500,000 Placement Date: 7/08/2018 Time: 60 days (Banker’s Rule) (Subjected to 20% tax) 1. Find the Interest. Thousand Pesos (P25,000) on November 20, 2012 plus interest at the annual rate of 12 percent. 2. Find the Due Date. Interest = (Principal)(Rate)(Time) Interest = (500,000)(0.013)(60/360)(0.8) ⇀ multiply by 0.8/80% due to 20% tax Interest = Placement Date: 07/08/2018 Return Date: 09/06/2018 Interest Rate: 1.3% Total Interest Earnings: P 866.67 How much you’ll get back= 500,000+866.66 = 500,866.66 If I made a loan yesterday (July 8) in one of Facebook’s famous shark loans, what is the interest rate? Payment date: Aug 7,2018 Total repayment: 9,800 Loan amount: 7,000 Loan term: 30 days Due date used exact time r =2,800/7,000 x 100 r = 40% It has a 40% interest rate for 30 days It uses exact time, since the payment date is August 7, 2018, and it considers the 31 st day of July. Shark Loan Under the Usury Law or Act No. 2655 which provided for a legal rate of 6% per annum applicable for “loan or forbearance of any money, good, or credits and in judgements.” Promissory Note ↳ A financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date. - Investopedia Sample Promissory Note: Quezon City, Philippines P25,000 August 1, 2012 Promissory Note FOR VALUE RECEIVED, I promise to pay Dennis Zaragoza the amount of Twenty Five (Signed) Garcia De Jesus Parts of a Promissory Note: Maker ↳ Person, company, or institution obliged to pay the money back Date of note Date the note was made and signed Payee ↳ Is the person, company, or institution that has loaned the money Face value ↳ Amount of money borrowed (same as principal) Maturity Date ↳ Date the money should be repaid Maturity Rate ↳ Face value plus interest (future value) Term ↳ Time period of the note *Monthly Interest: %every month *Annual Interest: %every year Simple Interest in Promissory Notes A loan of P9,000 was made to Mary Richards on June 21 for 90 days. The promissory note specified that the interest was 12% annual interest. Using ordinary time, find the due date, maturity value and interest. The due date is on September 27, she needs to pay P9,270. Interest being 270 pesos.
A loan of P9,000 was made to Mary Richards on June 27 for 90 days. The promissory note specified that the interest was 12% annual interest. Using exact time, find the due date, maturity date and interest. Interest is P266.3 Maturity Value: P9266.3 Maturity date: September 25 Exercises: Interest = 8500 Interest rate per annum = 10% Repayment = 51,000 Time = 2 years Principal = ?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture