### Question
How does General Provisions define actuarial method?


### Answer
Under *15 U.S.C. § 1615*, **actuarial method** is defined as:

> the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed

#### Citation:
  - *15 U.S.C. § 1615*
  - Heading: **CHAPTER 40-DEPARTMENT OF COMMERCE > SUBCHAPTER I-CONSUMER CREDIT COST DISCLOSURE > Part A-General Provisions**

