CT1 (Financial Mathematics) Exam Tips-
CT1 is basic mathematics based exam. The CT1 concepts are used in other CTs also. Try to make your concepts strong. Follow the given steps which will be helpful to clear exams.
First study the Core Study Material and make notes along with reading and understanding. Solve the questions which comes in chapters. After finishing the Core Study Material of each chapter, move to the Question Bank but make quickly revise the entire Study Material before moving to next chapter/section.
Finish sections 1,2,3 and 4 of the Question Bank. Then revise the entire material once. Then attempt X-series question bank. In this exercise you get an idea as to what is weak part, and which part need to be focused more. Now solve the previous year’s papers and see the result. Keep analyzing and trace out which area needs more effort.
Some key points:
- Prepare a time schedule and stick to it.
- Study in peace and keep Actuarial Tables and calculator at your table.
Here are some inside to subject-
Don’t escape any part but give more emphasize on those chapter which constitute major part of 100 marks exam. At least one big question is expected from chapter 9,10,12,14 and 15.In this Theory and Small question (2-4 marks) may add up to 20 marks. Thoroughly Solve Question Bank and X series along with past exam papers (minimum past 5 years paper). Don’t just go through it, think about the problem and solve them even if you feel it is easy, or else you may go blank during exam due to lack of practice.
As soon as you receive the question paper, go through it and try to attempt those questions first which you are good at. Paper is generally lengthy making it difficult to complete in 3 hours’ time. Solve small question later. Manage your time to attempt the most questions. Nowadays questions are asked to give “comment”. This part of question could be solved if you have a deep understanding of topic and conceptual clarity of the topic.
Don’t rely on actuarial tables, try to learn as many formulas as you can.
Most Expected type of Questions–
Chapter 9 – find annual/monthly/quarterly/half yearly installments, find loan outstanding at certain point, find principal and interest component, find revised installment after some changes in original loan agreement.
Chapter 10 – Every topic is important but most likely is a long question on NPV or one question on MWRR, TWRR or LIRR. You may be asked for a comment like “which is better among TWRR and MWRR and why?”
Chapter 12 – One Question on Index linked security is common in all past exams, others are important too. Don’t omit any part of this chapter.
Chapter 14 – One question to check “immunization” is most likely.
Chapter 15 – One question on Log Normal is common in past papers.
P.S. – Before you write your exam, make it clear in your mind that you can’t simply pass the exam by doing only book work, your concepts should be pretty clear. Be precise in what you write. Don’t write too long for questions that carry less marks or don’t write too less for questions that carry good marks. Write in legitimate hand writing. Please remember 1 marks = 1.8 minutes of exam time. Keep good speed.