The interest portion of an installment note payment is computed by multiplying the interest rate by the carrying amount of the note at the end of the period.

Name: The interest portion of an installment note payment is computed by multiplying the interest rate by the carrying amount of the note at the end of the period.
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The interest portion of an installment note payment is computed by multiplying the interest rate by the outstanding balance of the note at the beginning of the period, not the end.

The Interest Portion of an Installment Note Payment Is Computed