In another post i’ve write a preface for draft and in this line i will write about “how to calculate your draft?”. First of all you have to understand some glossary and it’s basic pattern.
Just to review draft have two type, the first is the one who have interest and another don’t have it. So it eill be different to calculate it. Some glossary that you should understand before we step more are:
ü Nominal Value
ü Due date value
ü Discounto periode
ü Interest periode
Nominal value is the value of draft that you will find in the letter. We may said that it’s the amount of payable and receiveable.
Due date value is the value that you will receive when your draft is ready. I mean its already got the due date. In this case, it will be different when it have an interest. When the case come to be like that. The due date value is the nominal value plus interest value. BUT When your draft don’t have interest, due date value = nominal value.
Discounto. When you discounto your draft to bank. Your draft value will be redenominated. It will be discount to the bank.
Discounto periode is the periode since you discount it to the bank until its due.
Interest periode is the periode since you make your draft until its due date.
Mr. Bond get a draft from Miss Yuen in january 1st 2013, The nominal that available in the letter is $1000. And then Mr. Bond discounto the draft in 22nd january. The letter will be due in four month.
1st case it don’t have any interest
2nd case it have an interest for 2 percent per year.
So.. how much money Mr. Bond will receive when he discounto it to the bank in the 1st case and 2nd case?
1st case -> without interest.
Nominal value = $1000
Due date value = $ 1000
Due date = 30 April
Discounto periode = 22 jan – 30 april ->