What is a Loan Constant?

A loan constant is the percentage of a loan’s principal that is paid as interest each year, expressed as a percentage of the loan’s original principal. For example, if a loan has a loan constant of 10%, then 10% of the loan’s principal will be paid as interest each year. The loan constant is also … Read more

What is a promissory note?

A promissory note is a document by which a person or company agrees with another to pay an amount of money in a specified time. These promissory notes are credit titles, since the person who receives them has the right to collect and demand payment from the person who issued it. The concept of promissory … Read more