Calculate the simple interest note proceeds. calulate the simple discount note proceeds.
Calculate the simple interest note proceeds.
calulate the simple discount note proceeds.
INTRODUCTION
Simple interest note:
Note receivable is the bill drawn on customer for the due amount of invoice. It is drawn by seller on buyer and buyer is bound to pay amount specified in notes at the maturity period. Here seller collects interest from buyer during period of note. It is simple interest calculated on original due amount as on date of sale.
Proceeds of simple interest note is the total amount received by seller from buyer.
Proceeds from simple interest note = principal value + interest amount
Simple discount note:
Discounting notes is discount of note with bank by seller to collect due amount from buyer on behalf of seller. Her bank collects interest from seller which is the discount amount from seller for collecting notes.
Proceeds in case of discounting bill for seller is total amount received on maturity date.
Proceeds in case of discounting bill = principal value - discount amount
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