Promissory Notes

Promissory Notes

by Deb Scott

​When you borrow money, you usually sign a promissory note. What do you think a promissory note is?

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​What are some things you might use a promissory note for?

​When you borrow money, in addition to paying back what you borrow, you need to pay back extra. Does anyone know what that extra amount you pay back called?

​Lenders may make you put something as collateral when you borrow money.

​Some lenders have a Home Equity Loan. Home Equity is the difference between what the home could be sold for and what is owed on it.

Open Ended

What do you think might happen is a loan is not payed pack.

​I = PRT

​I ---- Interest ( extra to pay back)

​P ---- Principal ($ borrowed)

​R ----Rate (percent)

​T----Time (years)

Multiple Choice

Write 67% as a decimal

• 67

• 6.7

• 0.67

• 0.067

Multiple Choice

Write 2.5% as a decimal

• 2.5

• 0.25

• 0.025

• 25

Multiple Choice

Find 4% of $3,500

• $140

• $150

• $130

• $145

Multiple Choice

Find 6.5% of $6,340

• $415

• $427.35

• $412.10

• $410.38

Multiple Choice

$300 x 2% x 1/2

• $40

• $30

• $50

• $25

Multiple Choice

Find $5000 x 4% x 1/4

• $30

• $40

• $50

• $60

Multiple Choice

$7,520 x 6.2% x 1 1/2

• $725.36

• $700

• $699.36

• $698.24