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In this video, Seth provides a brief introduction to promissory notes, which are lending instruments used for centuries. A promissory note is a document outlining the terms and conditions between a borrower and a lender, specifying the owed amount and any associated interest payments. There are various ways to structure promissory notes, including balloon payments—where interest-only payments are made for a set time before a lump sum payment of the balance—or straight-line amortization, which involves fixed payments throughout the loan's duration without a final balloon payment.