Guo′s Manuals SOA exam FM-ASA北美精算师考试.pdf

Deeper Understanding, Faster Calculation --Exam FM Insights Shortcuts Part I: Theories of Interest th 10 Edition by Yufeng Guo Fall 2009 This electronic book is intended for individual buyer use for the sole purpose of preparing for Exam FM. This book may NOT be resold or otherwise redistributed to others. No part of this publication may be reproduced for resale or multiple copy distribution without the express written permission of the author. © 2009, 2010 By Yufeng Guo Guo FM, fall 2009 Page 1 of 670 Contents Part One: Theories of Interest Chapter 1 Exam-taking and study strategy 5 A tale of two Exam FM takers, Mr. Busy and Mr. Lazy 5 Truths about Exam FM 9 How to study hard yet fail the exam miserably 11 Recommended study method 13 How to build a 3 minute solution script 14 How to eliminate errors 30 Chapter 2 Getting started 48 Chapter 3 FM Fundamental 49 Time value of money 49 Principal 49 Interest rate 49 Simple interest rate 50 Compound interest rate 50 Force of interest 52 Nominal interest rate 57 APR 58 Annual effective interest rate 59 Continuous compounding 60 Effective annual rate of discount 60 Simple annual rate of discount 63 Nominal annual rate of discount 63 Relationship between i , d , , i(m) , d (m) 64 Future value 75 Present value 75 Convert interest rate to disco