The rights of the Bank to charge compound interest as conferred on the Bank by this Agreement shall subsist and continue to subsist notwithstanding the covenant by the Borrower to pay interest on daily rest basis monthly in arrears and notwithstanding the issue andor service of a demand for payment of monies or any of the monies intended to be hereby secured andor. Such interest shall be payable only on the Maturity Date or upon acceleration of this Promissory Note pursuant to Section 4 or 5 hereof. With compound interest the interest per period is based on the principal balance plus any outstanding.
To calculate the interest on your promissory note you will not need to use an amortization calculator.
For example for a nine-month promissory note divide 9 by 12 the number of months in a year to equal 075. If the interest is classified as simple interest first take your annual interest rate in percentage form and divide it by 365 to obtain your daily interest rate. Compute interest compounding for later years. The document contains an unconditional promise made by the loan-maker to pay back the money to the loan-giver either on demand or at a future date as specified in the.