PROMISSORY NOTE
                                                                                                 Selangor, May 18, 2024
150 days after date, I promise to pay to the order of   Ms. Winnie     /   RM X  with interest at 8% per year, payable at Cimb Bank  Puchong.
Due Date: __________                                                                           Mr.Balakumar

Calculate the:
(i)	Due date									  
(ii)	principal, RM X if the maturity value of the promissory note is RM4,080.
(iii)	interest,									
by using the Banker’s Rule.


To solve the problem, let's go through each part step by step.

### (i) Due Date

The promissory note states that the payment is due 150 days after the date of issue, which is May 18, 2024.

1. **Start Date:** May 18, 2024.
2. **Add 150 days:**

   We need to add 150 days to May 18, 2024. To do this, we break it down by months:
   - May: 13 days (31 - 18 = 13 days remaining in May)
   - June: 30 days
   - July: 31 days
   - August: 31 days
   - September: 30 days (Add the remaining days here)

   Summing up the days:
   - 13 (May) + 30 (June) + 31 (July) + 31 (August) = 105 days

   So, after August 31, 2024, we have 150 - 105 = 45 days remaining. Adding 45 days to September 1 brings us to October 16, 2024.

   **Due Date:** **October 16, 2024**

### (ii) Principal (RM X)

We are given the maturity value of RM 4,080 and the interest rate of 8% per year. To find the principal, we use the formula for maturity value:

\[
\text{Maturity Value} = P \left( 1 + \frac{r \times t}{100} \right)
\]

Where:
- \( P \) = Principal (RM X)
- \( r \) = Annual interest rate (8%)
- \( t \) = Time in years (150 days = \( \frac{150}{365} \) years)

Substituting the given values:

\[
4,080 = P \left( 1 + \frac{8 \times \frac{150}{365}}{100} \right)
\]

Simplify:

\[
4,080 = P \left( 1 + \frac{8 \times 150}{365 \times 100} \right)
\]

\[
4,080 = P \left( 1 + \frac{1,200}{36,500} \right)
\]

\[
4,080 = P \left( 1 + 0.03288 \right)
\]

\[
4,080 = P \times 1.03288
\]

\[
P = \frac{4,080}{1.03288} \approx RM 3,950.28
\]

**Principal (RM X):** **RM 3,950.28**

### (iii) Interest

Now, calculate the interest using the principal we just found:

\[
\text{Interest} = P \times \frac{r \times t}{100}
\]

Substitute the values:

\[
\text{Interest} = 3,950.28 \times \frac{8 \times 150}{365 \times 100}
\]

\[
\text{Interest} = 3,950.28 \times 0.03288 \approx RM 129.72
\]

**Interest:** **RM 129.72**

### Summary:
- **(i) Due Date:** October 16, 2024
- **(ii) Principal (RM X):** RM 3,950.28
- **(iii) Interest:** RM 129.72

Would you like more details or have any questions?  

Here are some related questions you might find helpful:
1. How is the Banker’s Rule applied in different countries?
2. What are the differences between simple interest and compound interest?
3. How can you determine the time period if the maturity value and interest rate are known?
4. What would be the principal if the interest rate were 10% instead of 8%?
5. How does the length of the time period affect the maturity value of a promissory note?
6. What are some common types of promissory notes?
7. How is the maturity value calculated if interest is compounded quarterly?
8. How do financial institutions use promissory notes in lending practices?

**Tip:** Always remember to convert days to years when dealing with interest rates that are annual.

Learn how to calculate the due date, principal amount, and interest of a promissory note using the Banker’s Rule. Step-by-step solution for a promissory note with a maturity value of RM 4,080 and an 8% annual interest rate.

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