##### Asked by: Elke Quilliot

asked in category: General Last Updated: 2nd March, 2020# What is the actuarial method?

**Actuarial Method**is the process of distributing payments made on a debt between the amount provided as fund and also to the finance charge in accordance to which a payment is used first to the appended finance charge.

Likewise, people ask, what do actuaries calculate?

**Actuaries** primarily use probability, statistics, and financial mathematics. They'll **calculate** the probability of events occuring in each month into the future, then apply statistical methods to **determine** the estimated financial impact.

Furthermore, what is unearned interest? **Unearned interest** is **interest** that has been collected on a loan by a lending institution but has not yet been recognized as income (or earnings). Instead, it is initially recorded as a liability. If the loan is paid off early, the **unearned interest** portion must be returned to the borrower.

Additionally, how do you calculate the Rule of 78s on a loan?

The **rule of 78** methodology calculates interest for the life of the **loan**, then allocates a portion of that interest to each month, using what is known as a reverse sum of digits. For example, if you had a 12-month **loan**, you would add the numbers 1 through 12 (1+2+3+4, etc.) which equals **78**.

Is actuarial work boring?

It can be very **boring**, especially while you're still in the exam process. However, don't ask non-**actuaries** to tell you about **actuaries**. If you want a good paying **job** in business that is a combination of mathematics and computer program, being an **actuary** is a good choice.