2 points

A promissory note differs from an installment note in which way?

Promissory notes are not based on an effective interest rate, but installment notes are based on an effective interest rate.

Discounts and premiums are not recorded for promissory notes, whereas they are recorded for installment notes.

There are no payments of principal on a promissory note until the note is due, whereas a portion of the principal is included in each payment on an installment note.

There is no difference between a promissory note and an installment note.