Circle the letter of the best response. 1. Which of the following is not a required element needed to compute interest? a. principal b. rate c. time d. I payer 2. The party signing a note payable is called: the maker b. c. the lender d. none of the above a. the payee 3. Interest on a $7,500, 8%, 120-day note is: a. $197 b. $600 c. $6,000 d. $72,000 4. The amount being borrowed is called the: a: loan b. defaulting note c. principal d. note obligation 5. The entry to record the payment of an interest-bearing promissory note is: a. Cash XX Notes Payable XX b. Notes Payable XX Interest Expense XX Cash XX c. Notes Payable XX Cash XX d. Interest Expense XX Cash XX Notes Payable XX