Business Hints for Men and Women by Alfred Rochefort Calhoun
page 76 of 204 (37%)
page 76 of 204 (37%)
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Such persons are known as "joint makers."
If one signs his name on the back of a note before it has been handed to the payee, he makes himself not only an endorser, but a joint maker. If the maker of such a note refuses to pay on the expiration of time stated, he is liable for the amount without any notification. DISCOUNTING NOTES If a business man borrows from a bank on his note, he must pay for the privilege. Interest is a sum paid for the use of money. Interest is reckoned as a certain percentage yearly on the principal. Interest on interest is called "compound interest" and is unused in ordinary business transactions. Instead of collecting interest when the amount borrowed on a note is due, or deducting it from the principal in advance, it discounts the note at the rate agreed on and pays the rest. This is called bank discount and its rate is variable, depending on the abundance or scarcity of money. Money is a marketable article, and the price, like that of wheat |
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