Your friend needs to buy a $ 1,000 component to replace some essential sound equipment. He has

Question:

Your friend needs to buy a $ 1,000 component to replace some essential sound equipment. He has neither that much cash nor credit available. He has heard of promissory notes and asks for your help. Explain the concept of a promissory note. Also explain what it will mean when your friend signs the note and why the total of the payments on the note at will be greater than the original $ 1,000.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...