FM Exam Workshop Sean Ke. Basic Introduction - Registration Exams provided every two months. (even #) Register at www.soa.orgwww.soa.org Fees: $225 Deadline:

Slides:

Advertisements

Similar presentations

Chapter 5 Mathematics of Finance.

Advertisements

Chapter 03: Mortgage Loan Foundations: The Time Value of Money

Chapter 5 Mathematics of Finance.

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11 The Time Value of Money.

Chapter 3 Mathematics of Finance

Mathematics of Compound Interest

MER439- Design of Thermal Fluid Systems Engineering Economics Lecture 2- Using Factors Professor Anderson Spring 2012.

Exam 2 Practice Problems

PSU Study Session Fall 2010 Dan Sprik

Compound Interest and Present Value

Time Value of Money.

Chapter 3 Mathematics of Finance

PSU Study Session Fall 2010 Dan Sprik

Exam FM/2 Review Introduction and Time Value of Money

Time Value of Money (2) and Inflation Personal Finance: Another Perspective.

Marywood Math Contest Saturday, March 29, 2014 Marywood University Liberal Arts Center 10:00 – 11:00 am (Arrive by 9:30 am)

SOA Sample Problems Topics: Put-Call Parity

L2: Time Value of Money ECON 320 Engineering Economics Mahmut Ali GOKCE Industrial Systems Engineering Computer Sciences.

Chapter 4: Time Value of Money

5 Time Value of Money 5.1 Explain the importance of the time value of money and how it is related to an investor’s opportunity costs. 5.2 Define simple.

Simple Interest Lesson

Winter Quarter 2012 Professor Loong Kong. No cell phone/texting Get Textbook Use 3 ring binder to store handouts Required calculator – Texas Instrument.

Interest Rates Chapter

Copyright © Cengage Learning. All rights reserved.

Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 5.1 Interest Rate Markets Chapter 5.

MATH 3286 Mathematics of Finance

Present value, annuity, perpetuity

Copyright © 2008 Pearson Education Canada11-1 Chapter 11 Ordinary Simple Annuities Contemporary Business Mathematics With Canadian Applications Eighth.

Chapter 3 Mathematics of Finance Section 3 Future Value of an Annuity; Sinking Funds.

Chapter 5. The Time Value of Money Simple Interest n Interest is earned on principal n $100 invested at 6% per year n 1 st yearinterest is $6.00 n 2.

Exercises 2010 September

Lecture 12 Compound Interest Ana Nora Evans 403 Kerchof Math 1140 Financial Mathematics.

HW 2 1. You have accumulated $4,400 in credit card debt. Your credit card rate is 8.5% APR and you are charged interest every month on the unpaid balance.

1 Chapter 05 Time Value of Money 2: Analyzing Annuity Cash Flows McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

1 Chapter 11 Time Value of Money Adapted from Financial Accounting 4e by Porter and Norton.

Chapter 5 Time Value of Money

D- 1 TIME VALUE OF MONEY Financial Accounting, Sixth Edition D.

Chapter 2 Applying Time Value Concepts Copyright © 2012 Pearson Canada Inc. Edited by Laura Lamb, Department of Economics, TRU 1.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER3CHAPTER3 CHAPTER3CHAPTER3 The Interest Factor in Financing.

5- 1 McGraw Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved Fundamentals of Corporate Finance Sixth Edition Richard.

Chapter 03: Mortgage Loan Foundations: The Time Value of Money McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Why Pass Exams?  Much more important to employers than GPA (within reason) Big advantage for internships Nearly required for full-time work  Best thing.

Ch 4. Time Value of Money Goal:

© The McGraw-Hill Companies, Inc., Irwin/McGraw-Hill Chapter 3 Fundamentals of Corporate Finance Third Edition The Time Value of Money Brealey.

Financial Accounting, Sixth Edition

British Columbia Institute of Technology

7-8 simple and compound interest

Basics  Annuities are streams of payments, in our case for a specified length  Boil down to geometric series.

Lecture 1 Introduction Math 1140 Financial Mathematics Ana Nora Evans 403 Kerchof

TVM Sample Problems (ver. 2.1 Fall 13) 1 More Than One Future Cash Flow? YesNo Even or Uneven Cash Flows Uneven Even CF Worksheet Annuity (5 parameters)

Ch 5. Time Value of Money Goal: to learn time value of money and discounted cash flows To understand a tool to value the expected future value in terms.

1 Chapter 5 Discounted Cash Flow Valuation. 2 Overview Important Definitions Finding Future Value of an Ordinary Annuity Finding Future Value of Uneven.

Chapter 3 Mathematics of Finance

Interest Rates Chapter Outline Interest Rate Quotes and Adjustments – The Effective Annual Rate (EAR) and the Annual Percentage Rate (APR) The.

Thinking Mathematically

Chapter 8 Plan for Financial Security. Why Save 8.1 Benefits of Saving Saving Strategies Automatic Saving.

Why Pass Exams?  Much more important to employers than GPA (within reason) Big advantage for internships Nearly required for full-time work  Best thing.

1 Chapter 05 Time Value of Money 2: Analyzing Annuity Cash Flows McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Why Pass Exams?  Much more important to employers than GPA (within reason) Big advantage for internships Nearly required for full-time work  Best thing.

Chapter 5 The Time Value of Money Topics Covered 5.1 Future Values and Compound Interest 5.2 Present Values 5.3 Multiple Cash Flows 5.4 Level Cash Flows.

Barnett/Ziegler/Byleen Finite Mathematics 11e1 Chapter 3 Review Important Terms, Symbols, Concepts 3.1. Simple Interest Interest is the fee paid for the.

Financial Mathematics Math 490A. Math 490A – Instructor WTHR 320 Jeff Beckley – –Math 818 – –

MGT 470 Final Exam Review 1 Question Types: Multiple choice, True/false w/ explanation, Short answer, Short essay, Fill-in-the-blank Problems: Multiple.

Section 6.7 Financial Models. OBJECTIVE 1 A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000 is.

Section 5.7 Financial Models. A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000 is deposited.

Chapter 4 Fundamentals of Corporate Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc.

Chapter 5 The Time Value of Money— The Basics. Copyright ©2014 Pearson Education, Inc. All rights reserved.5-2 Slide Contents Learning Objectives Principles.

Chapter 3 Mathematics of Finance

Financial Mathematics

Financial Mathematics

Presentation transcript:

FM Exam Workshop Sean Ke

Basic Introduction - Registration Exams provided every two months. (even #) Register at Fees: $225 Deadline: About a month before the exam. Related class: Math 172A

Basic Introduction - Content Financial Mathematics Interest Theory Time Value of Money, Annuities, Loans, Bonds, Cash Flow and Portfolios,Immunization. Financial Economics (Derivative Market) Derivative, Options, Forwards and Futures, Swaps, Hedging and investment Strategies.

Basic Introduction - Materials Interest Theory – Mathematics Interest Theory (2 nd Edition) Chapter 1 – 9 (excluding 1.13, , 4.7, 5.5, 6.7, 6.8, 6.10, , 9.5; 8.3 only for Chapter 8.) Financial Economics (Derivative Market) – A Basic Course in the Theory of Interest and Derivatives Markets Chapter

Basic Introduction - Materials SOA Sample questions for both interest theory (73) and Financial Economics (34). Study Manual – ASM (Hard) – Actex (Easy) – Guo Yufeng (Shortcuts & methods)

Basic Introduction – Exams 35 multiple-choice questions. 3 Hours. – Average: 5 mins per question. – 5 testing questions, not graded. – 30 questions graded, 70% - passed. 65 – 80% interest theory 20 – 35% financial economics Immediately know the result

Basic Introduction – Calculator Yes, you can bring 2 calculator! BA II Plus & TI – 30XS (MultiView)

Break-Downs – Interest Theory 1.Time Value of Money (5-15%) Easy Play around with interest rate! Monthly, effective, nominal, discount, simple, compound, force of interest, convertible….

Break-Downs - Interest Theory 2.Annuities (5-20%) Medium 3.Loans (5-20%) Medium 4.Bonds (5-20%) Medium Deal with multiple payments.

Break-Downs - Interest Theory 5.General Cash flows and Portfolios (5-20%) Hard 6.Immunization (5-15%) Medium

Break-Downs – Financial Economics 1.General Derivatives (0-5%) Easy 2.Options (0-5%) Easy 3.Forwards and Futures (0-10%) Easy

Break-Downs – Financial Economics 4. Swaps (0-5%) Medium 5. Hedging and Investment Strategies (5-15%) Hard

Some Tips Manage your study time. Distribute your time according to percentage of the break-downs. Start from Easy, and make sure you are comfortable with both Easy and Medium parts Do sample exams at Req/Syllabus-Study-Materials/edu-exam-p- online-sample.aspx

Some Tips Questions you don’t know how to solve? Bring the answers to the question. Eliminate some obviously wrong answers and pick one. No penalty for wrong answers.

Some Tips Example: Kathryn deposits 100 into an account at the beginning of each 4-year period for 40 years. The account credits interest at an annual effective interest rate of i. The accumulated amount in the account at the end of 40 years is X, which is 5 times the accumulated amount in the account at the end of 20 years. Calculate X. (A) 4695 (B) 5070 (C) 5445 (D) 5820 (E) 6195

Some Tips Useful Websites scussion_forum/ scussion_forum/

Some Tips Find your study partners!