About this Course

Exam FM tests the candidate's understanding of the fundamental concepts of financial mathematics, and how those concepts are applied in calculating present and accumulated values for various streams of cash flows as a basis for future use in: reserving, valuation, pricing, asset/liability management, investment income, capital budgeting and valuing contingent cash flows. The Financial Math for Actuaries, Part 1 course will give you opportunities to better understand the time value of money in preparation for the Exam FM through these learning activities: Perform calculations relating to the present value, current value, and accumulated value of cash flows, using rates of interest, rates of discount and the force of interest. Calculate the present value, current value, and accumulated value for sequences of non-contingent payments (annuities). Reflect payment timing, longevity, and arithmetic/geometric payment changes in the annuity valuation process.

Created by: The University of Wisconsin-Madison

Level: Intermediate