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hello everyone here we talk about one application of simple interest it is called promissory note here is an example promissory note happens between two parties these two parties could be anybody could be company could be government could be just two individuals one party is called the debtor who is borrowing money from another party and sign this piece of paper it is called promissory note the paper shows when the money will be returned what kind of term will be carried mr b is the debtor in this case another party mentioned in this note mr a is the creditor who lent money out to mr b the quantity of money being mentioned is called the face value of this promissory note two thousand dollar and carried the term 60 days after this date the date shows on the promissory note september 1st 2009 that is called issue date and the term also followed 2 000 and certain percent of dollar that means interest rate being mentioned for promissory note if theres no compounding situation mentioned so