Mike Deposited $100, 000 in a Bank and Procured a Certificate

question 75

Multiple Choice

Mike deposited $100, 000 in a bank and procured a certificate of deposit on it, payable to himself, and for repayment in 5 years with a 5 percent interest rate.A year after that, Mike borrows $25, 000 from Jill, and gives her a promissory note to repay it in one year.As collateral, Mike gave Jill the certificate of deposit and asked to put in a prepayment clause to which Jill agreed.They mutually agreed that Mike could repay in monthly payments, as mentioned it in the note.
-What kind of promissory note has Jill and Mike decided on?

• A)a time note
• B)a bearer's note
• C)a mortgage note
• D)an installment note