Self Assessment Quizzes

CHAPTER 26: Section 1 Promissory Notes

	1.	A written promise to pay a certain amount of money at a specific time is called

		a.	accounts payable note
		b.	accounts receivable note
		c.	a promissory note
		d.	a receivable note

	2.	The amount of time a borrower has to repay a note is its

		a.	term
		b.	length
		c.	rate
		d.	maturity date

	3.	The fee charged for use of money, stated as a percentage of the principal is the

		a.	face value
		b.	interest rate
		c.	borrow rate
		d.	payment rate

	4.	Principal plus interest is the

		a.	maturity value
		b.	face value
		c.	loan value
		d.	term value

	5.	The person or business promising to repay the principal and interest of a note is the

		a.	promisor
		b.	payee
		c.	maker
		d.	lender

	6.	The amount being borrowed is the

		a.	gross value
		b.	issued value
		c.	maturity value
		d.	face value

	7.	The interest rate on a $10,000 sixty day note that had interest of $131.50 would be

		a.	8%
		b.	9%
		c.	10%
		d.	11%

	8.	The formula to calculate interest is

		a.	principal x time = interest
		b.	principal interest rate x interest + time = interest
		c.	principal x interest rate x time = interest
		d.	principal + interest rate x time = interest

	9.	The interest on a $15,500 six month note at 9% interest would be

		a.	$1,395
		b.	$687
		c.	$736.25
		d.	$697.50

	10.	The interest on a $12,000 ninety day note at 12% interest would be

		a.	$1,440
		b.	$355.06
		c.	$2,958.90
		d.	$710.12