Fact Pattern 22-3 To borrow the funds to pay tuition at State College, Tia signs an instrument unconditionally promising to pay to "United Credit Company" $17,500 with interest in installments with the final payment due June 30, 2028.
Refer to Fact Pattern 22-3. The instrument that Tia signed is most likely
A) a trade assignment.
B) a draft.
C) an order to pay.
D) a promissory note.

Question

Quizplus · Accepted Answer

The instrument Tia signed is a promissory note because it is a written promise to pay a specified amount of money to a specified party, in this case, United Credit Company, with terms for repayment.

Fact Pattern 22-3 to Borrow the Funds to Pay Tuition