**Financial Mathematics (FM)**

FM Textbook

Interest Theory: Financial Mathematics and Deterministic Valuation

This first edition of this textbook is a suggested textbook for the Exam FM Learning Objectives by the Society of Actuaries. The second edition will become a suggested textbook for the February 2019 exam cycle. Both editions can be used to prepare for the current FM exam.

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.

The second edition incorporates the topics covered by the SOA's three study notes, including the following: interest rate determinants, defaults, inflation, T-bills, corporate bonds, first-order Macaulay approximations, and the U.S. banking system.

The first edition of this textbook, in combination with the three SOA study notes, can still be used to prepare for the FM exam.

How to Order the Textbook

The second edition can be ordered from the Actuarial Bookstore or Actex as a printed textbook, digital edition, or a combination of both.

The solutions to this text can be found below:

While supplies last, the first edition can also be ordered from the Actuarial Bookstore or Actex.

The solutions to this text can be found below:

The above solutions were updated on 11.21.17.

Errata

The errata to the first edition were updated on 08.15.18

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. 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

2018 Edition

The 2018 edition of our Set of 3 FM Practice Exams is for the October 2018 exam cycle and later cycles. It can be ordered as printed exam booklets or as an electronic product.

The 2018 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: 2018 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.

Support

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.

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SOA FM Website

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

**Helpful FM Links**

For more information about the FM Exam, click here.

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 Connect e-Newsletter