The declining-balance method is widely used by credit unions and consumer finance companies to calculate interest.

Question

Quizplus · Accepted Answer

The declining-balance method is primarily used for calculating depreciation on an asset over time, not for calculating interest by credit unions and consumer finance companies. Interest calculations by these institutions are typically based on the outstanding balance, but methods like simple interest or compound interest are more common.

The Declining-Balance Method Is Widely Used by Credit Unions and Consumer