Financial Mathematics (FM) - All English

Financial Mathematics (FM) – All English

₹22,100.00

FM – Financial Mathematics – Regular Course
Faculty: Praveen Patwari & Other Quailified Experts
Course Duration: 125+ hours

Category:

SOA Exam FM – Financial Mathematics

Build Strong Foundations in Financial Mathematics, Cash Flow Valuation and Asset-Liability Management

Exam FM – Financial Mathematics is one of the preliminary actuarial examinations conducted by the Society of Actuaries (SOA), USA, and forms part of the pathway towards the Associate of the Society of Actuaries (ASA) designation.

The examination focuses on applying fundamental financial mathematics concepts to calculate the present and accumulated values of cash flows, evaluate financial instruments and understand investment-related financial obligations.

Exam FM covers time value of money, interest theory, annuities, loans, bonds, investment returns and asset-liability management, developing essential mathematical and analytical skills for actuarial and financial applications.

Course Structure & Syllabus

Exam FM combines financial mathematics concepts with practical applications in insurance, banking, investments and financial risk management.

Key Topics Covered:

  1. Time Value of Money & Interest Theory:
    Simple and compound interest, effective and nominal interest rates, discount rates, force of interest, present value and accumulated value calculations.
  2. Annuities & Perpetuities:
    Annuities-immediate, annuities-due, level and varying annuities, perpetuities, increasing and decreasing payments and present value calculations.
  3. Cash Flow Valuation:
    Equations of value, discounted cash flows, payment streams, accumulation functions and valuation of financial obligations.
  4. Loan Amortisation & Repayment:
    Loan principal, outstanding balances, amortisation schedules, interest and principal repayments, balloon payments and loan refinancing.
  5. Bond Valuation & Yield Analysis:
    Bond pricing, coupon payments, redemption values, yield rates, premium and discount amortisation, book values and callable bonds.
  6. Investment Returns & Yield Curves:
    Spot rates, forward rates, yield curves, investment returns and valuation of financial cash flows.
  7. Asset-Liability Management & Immunisation:
    Duration, convexity, interest rate sensitivity, cash flow matching, Redington immunisation and full immunisation.

The Exam FM syllabus focuses on financial valuation, interest rate calculations, cash flow analysis, investment mathematics and asset-liability management.

Syllabus Topics & Weightages

The SOA Exam FM syllabus comprises five principal areas:

Topic Approximate Weightage
Time Value of Money 5–15%
Annuities and Non-Contingent Cash Flows 20–30%
Loans 15–25%
Bonds 15–25%
General Cash Flows, Portfolios and Asset-Liability Management 20–30%

Topic weightages are indicative ranges rather than fixed percentages. Actual question distribution may vary between examination sittings.

Examination Structure

Exam FM is a computer-based multiple-choice examination assessing financial mathematics concepts and their practical applications.

Particulars Details
Examination SOA Exam FM – Financial Mathematics
Conducting Body Society of Actuaries (SOA)
Examination Format Multiple-Choice Questions
Total Questions 30
Examination Duration 2 Hours 30 Minutes
Examination Mode Computer-Based Testing (CBT)
Examination Centre Authorised Prometric Test Centres
Negative Marking No
Exam Months February, April, June, August, October and December

Important Examination Guidelines

  • Multiple-Choice Examination:
    Candidates must solve 30 financial mathematics questions within 2 hours and 30 minutes.
  • Numerical Applications:
    Questions assess interest calculations, annuity valuation, loan amortisation, bond pricing and asset-liability management.
  • Calculators:
    Only SOA-approved calculators are permitted. The Texas Instruments BA II Plus or BA II Plus Professional is particularly useful for financial calculations.
  • Reference Material:
    Candidates should refer to the official SOA syllabus for permitted resources and examination requirements.
  • Examination Booking:
    Candidates must register through the SOA and schedule their examination appointment within the applicable testing window.
  • Examination Conduct:
    Candidates must comply with SOA and Prometric identification, security and examination regulations.

Eligibility Criteria

Exam FM is a preliminary actuarial examination suitable for students beginning their SOA actuarial qualification journey.

  • No prior actuarial examination pass is required before attempting Exam FM.
  • Students from Mathematics, Statistics, Commerce, Economics, Finance, Engineering and other academic backgrounds may prepare for the examination.
  • A strong understanding of algebra, calculus and mathematical reasoning is recommended.
  • Familiarity with basic financial concepts, interest calculations and cash flows is beneficial.
  • Candidates must meet SOA’s applicable registration, identification and examination entry requirements.

Learning Objectives

Studying Exam FM develops the ability to:

  • Understand and apply interest theory and the time value of money.
  • Calculate present and accumulated values of financial cash flows.
  • Evaluate different types of annuities and perpetuities.
  • Construct loan amortisation schedules and determine outstanding balances.
  • Price bonds and calculate investment yields.
  • Understand spot rates, forward rates and yield curves.
  • Calculate duration and convexity.
  • Apply cash flow matching and immunisation techniques.
  • Develop mathematical modelling and financial risk assessment skills.

Practical Applications of Exam FM

The knowledge gained in Exam FM is applicable across several actuarial and financial disciplines:

  1. Life Insurance:
    Valuing future insurance payments, discounting liabilities and analysing long-term financial cash flows.
  2. Pensions:
    Calculating annuity values, evaluating retirement benefits and analysing long-term pension obligations.
  3. Banking & Finance:
    Loan amortisation, interest rate calculations, bond valuation and financial product analysis.
  4. Investment Management:
    Evaluating fixed-income securities, investment returns, duration and interest rate risks.
  5. Asset-Liability Management:
    Matching financial assets and liabilities, managing interest rate exposures and applying immunisation techniques.

Exam FM establishes essential financial mathematics knowledge that supports advanced actuarial studies, including Fundamentals of Actuarial Mathematics (FAM) and other actuarial subjects involving valuation, pricing and financial risk management.

Technical Requirements – AEI Learning Application

To access online classes, recorded lectures and digital study resources, students must ensure their devices meet the following minimum technical requirements of the Actuators Educational Institute (AEI) Learning Application.

Device / Platform Minimum Requirement
Android Android 9.0 or above
Windows PC / Laptop Windows 10 or above
iPhone / iPad (iOS) iOS 12.0 or above
MacBook / iMac (macOS) Apple M1 chip or above with macOS 14 or later
WHAT YOU WILL GET

Course Deliverables

gold medal
Recorded Lectures
gold medal
Live Discussion & Practice Sessions
gold medal
Softcopy of AEI Own Study Materials
gold medal
Access to Student Dashboard
gold medal
Technical Support
gold medal
Chapter Wise MCQ Bank
gold medal
Course Extension (2 More Terms)
gold medal
Interactive Q & A Forum

Ishika MakkarCleared
Bishakha AgarwalCleared
Neel MundhraCleared
Rakshita BabbarCleared
Harshvardhan VijayCleared

FACULTY

Meet The Instructor


Praveen Patwari is a Chartered Accountant (CA), Financial Risk Manager (FRM) and Associate of the Institute of Actuaries of India (AIAI), with additional professional credentials including CIRA, CCRA, CIDT, CIIB and NISM Series VIII (Equity Derivatives). With over 15 years of experience in finance, actuarial education, mentoring and professional training, he has built a strong reputation for simplifying complex concepts and guiding students across multiple professional pathways.

As the Founder and Lead Mentor at Actuators Educational Institute (AEI), Praveen has taught and mentored 50,000+ students across Actuarial Science, FRM, CFA, finance and related professional programmes. He has mentored numerous rankers and top-performing students and is a regular speaker at leading institutions including SRCC, Miranda House, Hansraj College, Lady Shri Ram College, St. Xavier’s College, NMIMS, Ramjas College, NM College and HR College of Commerce.

Mokshit Kothari is a Qualified Chartered Accountant and CA Final AIR 26 rank holder, along with being an actuarial candidate with 10 actuarial papers cleared. He has secured All India Rank 1 in CM1 and CM2, and was also the Nagpur City topper in CA Intermediate, clearing both groups in his first attempt. He currently works with Mosaic Asset Management in the Private Credit team, bringing together strong interests in finance, mathematics and actuarial science.

At Actuators Educational Institute, Mokshit teaches CM1, CM2 and SOA Exam FM. His teaching approach focuses on conceptual clarity, structured problem-solving and application-oriented learning, helping students build strong mathematical and financial foundations and approach professional examinations with greater confidence.

PLAYLIST

Demo Class Videos


× Popup