Financial Mathematics (FM)


FM Textbook 


Interest Theory: Financial Mathematics and Deterministic Valuation

This textbook is a suggested textbook for the Exam FM Learning Objectives by the Society of Actuaries.

In combination with the three study notes, this text provides a comprehensive explanation of the required interest theory material on the Financial Mathematics (FM) Exam offered by the Society of Actuaries and the Casualty Actuarial Society.  The concise explanations in this textbook fully prepare the students for the questions that appear on the FM Exam.  Key Concepts are identified throughout the text for easy reference while working practice problems. 

This book contains over 300 end-of-chapter questions that are written in the style of the multiple choice questions on the FM Exam.  Each question has a difficulty rating that can be found at the end of the textbook along with the answer to the question.  Fully worked solutions are available as a free download below. 

The solutions contain step-by-step instructions that demonstrate the quickest and most effective use of the BA-II Plus calculator.

This textbook can be ordered from the Actuarial Bookstore or Actex.



The solutions to this text can be found below:

Solutions to Chapters 1 - 5

Solutions to Chapters 6 - 10

Solutions to Chapters 11 - 13

Solutions to Chapters 14 - 15

Solutions to Chapters 16 - 18

The above solutions were updated on 11.21.17.



The errata to this text were updated on 10.12.17.

Interest Theory Errata



FM Practice Exams


Set of 3 FM Practice Exams Summary

The key to passing an actuarial exam is to practice working exam-style questions.  Certainly, SOA Course FM is not an exception to this rule.  The ActuarialBrew Set of Three FM Practice Exams helps you to focus on the material that is likely to be tested.  By taking a practice exam under exam conditions, students can determine their strengths and weaknesses, which allows them to focus on the areas where improvement is most needed before the exam day arrives.

Each of our three FM Practice Exams has 35 exam-style questions and is designed to mimic the actual exam experience.  The ActuarialBrew Set of 3 Practice FM Exams gives students the exam-taking practice necessary to build confidence for success on exam day.

The Practice Exams are formatted like the actual FM exam and the Practice Exams should be taken under exam conditions to help students best prepare for the actual FM exam. 


How to Order the Practice Exams


2017 Edition

The 2017 edition of our Set of 3 FM Practice Exams is for the June 2017 exam cycle and later cycles.  It can be ordered as printed exam booklets or as an electronic product.

The 2017 edition of our Set of 3 FM Practice Exams can be ordered from the Actuarial Bookstore or Actex.



Solutions to Practice Exams

Solutions to the FM Practice Exams: 2017 edition

Solutions to FM Practice Exam #1

Solutions to FM Practice Exam #2

Solutions to FM Practice Exam #3

For prior editions of the FM Practice Exam Solutions, please visit the FM Archives page. 




Free email support for these Practice Exams is provided to students who purchase our Set of 3 FM Practice Exams.  We are committed to provide quick responses to the questions we receive because we are dedicated to help our customers pass the exam.



SOA FM Website

To visit the SOA's FM website, click here.



Helpful FM Links

For more information about the FM Exam, click here.


Online Sample Exam


Interest Theory Sample Questions and Solutions

ActuarialBrew Solutions to Interest Theory Sample Questions


Financial Economics Sample Questions and Solutions


TI BA-35 Calculator Functions

TI BA II Plus Calculator Functions

Practice Questions Videos and Solutions


Past Exams and Solutions 

November 2005 SOA Exam FM/2 Questions

November 2005 ActuarialBrew FM Solutions

November 2005 SOA Exam FM/2 Solutions


May 2005 SOA Exam FM/2 Questions

May 2005 ActuarialBrew FM Solutions

May 2005 SOA Exam FM/2 Solutions


Other FM Links 

SOA Candidate Resources

SOA Candidate Connect e-Newsletter