Accounting and Finance Foundations

Unit 2

Accounting and Finance Foundations Unit 2: Accounting and Finance Math Workshop 137

Accounting and Finance Math Workshop

5.2.1 Promissory Notes

Student Assignment

1. On July 8, 20XX, Leslie borrowed $2,500 from her bank to pay for a cruise. Leslie signed a 6-month
   promissory note at 18 percent interest. Find the amount of interest Leslie must pay. Then find the
   total amount she must repay to her bank when the note is due.


2. Ty borrowed $3,500 for 18 months from his bank to have his house repainted. Ty signed a promis-
   sory note that carried 12 percent interest. Find the interest Ty must pay. Then find the total amount
   he must repay to his bank on the due date.


3. Principal: $2,500; Rate: .15; Time in years: 2; Total Interest: _____


4. Principal: $12,500; Rate: .12; Time in years: 3½; Total Interest: ____


5. Principal: $500; Rate: .08; Time in years: ½: Total Interest: _____


6. To finance the remodeling of her kitchen, Rosa borrowed $26,400 on an 18-month home equity loan.
   She signed a promissory note bearing interest at 12 ½ percent. What total amount did Rosa pay on
   the due date?


7. Rondel borrowed $2,000 for a vacation to Mexico. The promissory note he signed was for 3 months
   at 15 ¼ percent interest. How much did Rondel have to pay when the note came due?


8. Kelly borrowed $4,800 for 6 months and paid $264 interest. What rate of interest did she pay?


9. Toney paid $19.50 in interest on a loan of $2,600 for 1 month. What rate of interest did he pay?


10. Jennifer borrowed $5,000 on a 2-year note at 6.25 percent interest. What is her total interest?
    How much did she have to pay when the note came due?

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Chapter 5

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