You have to spend money to make money, as the old saying goes. But sometimes you have to borrow money to spend money, too.

You should understand the transaction and its principal amount, interest rate, repayment schedule, maturity date and other relevant terms to create the promissory note. Choose a template or create ...

That's why, as the payee, you'll want to be crystal clear on the amount of interest you're committing to pay for any promissory note that you sign. That calculation is a simple three-step process.