6
QuizMultiple Choice

Loans — Quiz

Question 6 • Financial Algebra/Mathematics

Which document is a legal one in which one party agrees to pay another party a specific sum of money over a given time period?

Answer
A
amortization schedule
B
loan application
C
promissory note
D
billing statement

Explanation

A promissory note is a legal document in which a borrower promises to repay a lender a specific amount of money, often according to an agreed timeline. An amortization schedule shows how payments are divided between principal and interest, while a loan application requests a loan and a billing statement lists charges owed.

AI-written and checked against the verified answer.

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