Interest assessed during each payment period (usually each month) based on the current outstanding balance of the installment loan is referred to as which method of calculating interest?

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The declining-balance method of calculating interest is based on the current outstanding balance of the loan, which is reduced with each payment. This method typically results in lower interest charges over time compared to the add-on and discount methods. The grace period refers to the period of time during which no interest is charged, and is not used to calculate interest charges.

Interest Assessed During Each Payment Period (Usually Each Month) Based