When the due date of a note is stated in months, the time factor in calculating interest, if it is due monthly, is the number of months divided by 12.

Due Date

A Due Date is the specific day by which a task, obligation, or payment is required to be completed or submitted.

Time Factor

An element affecting the valuation of financial instruments or transactions, often related to the duration until maturity or the timing of cash flows.

Calculating Interest

The process of determining the interest payment on a loan or investment based on the principal, rate, and time.