When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.

Name: When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.
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When the due date of a note is stated in months, the time factor in computing interest is typically the number of months divided by 12, as interest calculations usually consider a year to be 12 months, not based on a 360-day year.

When the Due Date of a Note Is Stated in Months