Determining the Due Date of a Note
To determine the due date of a note, start with the number of days in the term of the
note. Next, subtract the number of days in each month that pass until you reach 30 or
less. That number represents the due date of the note.
For example, assume that a 120-day note is signed on March 11. The due date of that
note is calculated as follows:
Term of the note
Days that pass in March:
Number of days in March
Date of the note
Number of days left
Days that pass in April
Number of days left
Days that pass in May
Number of days left
Days that pass in June
Number of days left
July 9
120
31
11
20
100
30
70
31
39
30
9
9 < 31; therefore, the due date is
Usually, the only aspect of this calculation that troubles students is determining the
number of days that pass in the month the note is signed. Remind students that interest
is not charged on the date the note is signed. Therefore, you should begin counting on
the day after the date on the note to determine the due date.
For example, in the preceding problem, the note was signed on March 11. Therefore,
count the number of days in the month of March, starting with March 12. Some
students will argue that there are 19 days between March 12 and March 31 (31 - 12 =
19 days). However, if you want to begin with March 12, you subtract only the first 11
days (31 - 11 = 20 days). If your doubting students don't agree with that argument,
tell them to count the days on their fingers, beginning with March 12—that will
convince them.
After you convince them that there really are 20 days between March 12 and March
31, your students may ask if it really matters whether you collect the note on July 9 or
July 10. Remind them that accepting payment on a note one day late without charging
interest or a penalty may set a precedent that will make it difficult to collect a note on
time in the future.