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.

Name: 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.
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When calculating interest for a note due in months, the time factor is determined by dividing the number of months by 12 to convert the period into years, as interest rates are typically annualized.

When the Due Date of a Note Is Stated in Months