On May 1, 2011, Bobs Music renegotiated its overdue account balance of $2,500 with Spectrum Electronics by

Question:

On May 1, 2011, Bob’s Music renegotiated its overdue account balance of $2,500 with Spectrum Electronics by signing a two-month promissory note at an interest rate of 5%. What is the principal amount of the note? What is the due date of the note? How much will Bob’s Music repay on the due date of the note?