Understanding CM1 and the Exam
Before diving into the study plan, let's understand what CM1 entails:

CM1 - Actuarial Mathematics 1: This subject covers fundamental actuarial
concepts related to financial mathematics, including interest rates, annuities,
loans, bonds, and basic derivatives. It's heavily quantitative.

Assumed Knowledge: While you're starting from scratch, the Institute and
Faculty of Actuaries (IFoA) typically assumes a certain level of mathematical
proficiency (e.g., A-level mathematics or equivalent). Don't worry, we'll build
this in.

Exam Format: The CM1 exam is typically a 3-hour and 15-minute exam. It's
a mix of theoretical questions and computational problems. You'll need to be
proficient with a scientific calculator.

Core Reading: The IFoA provides "Core Reading" which is the primary
source of truth for the syllabus.
Phase 1: Foundation Building (Weeks 1-4)
Given you're starting from scratch, the first few weeks are crucial for building a
strong mathematical foundation.
Goal: Master essential mathematical concepts and get comfortable with financial
calculations.
Resources:

Online Math Resources:
o
Khan Academy: Excellent for pre-calculus, algebra, and basic calculus.
o
Corbettmaths: Good for general GCSE/A-level math topics.
o
YouTube tutorials: Search for specific topics if you're struggling.

Scientific Calculator: Get familiar with a scientific calculator now. Practice
basic operations, powers, logarithms, and financial functions if available
(though you'll mostly rely on formulas). Recommended calculators: Casio FX991EX ClassWiz or similar.

CM1 "Formulae and Tables for Actuarial Examinations": Download this
from the IFoA website. You'll be using this extensively in the exam. Start
getting familiar with its layout.
Topics to Cover (Maths Focus):

Basic Algebra:
o
Order of operations (BODMAS/PEMDAS)
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o
Solving linear and quadratic equations
o
Indices and logarithms (critical for compound interest)
o
Manipulation of algebraic expressions
Sequences and Series:
o
Arithmetic progressions (AP)
o
Geometric progressions (GP) - Extremely important for annuities
o
Summation notation (Σ)
Calculus (Basics):
o
Differentiation (power rule, product rule, quotient rule, chain rule) Needed for force of interest, continuous functions.
o
Integration (basic definite and indefinite integrals) - Needed for
continuous functions.
Financial Math Basics:
o
Percentages, decimals, ratios
o
Simple and compound interest (conceptual understanding first)
Weekly Breakdown:
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Week 1: Algebra & Indices/Logarithms:
o
Spend 2-3 hours daily on tutorials and practice problems.
o
Focus heavily on understanding and manipulating indices and
logarithms.
o
Practice solving equations involving these.
Week 2: Sequences & Series (AP & GP):
o
Dedicated time to understanding AP and especially GP formulas.
o
Work through many examples of summing series.
o
Introduce summation notation.
Week 3: Basic Calculus (Differentiation):
o
Understand the concept of a derivative.
o
Practice differentiation rules with various functions.
o
Relate differentiation to rates of change.
Week 4: Basic Calculus (Integration) & Financial Math Warm-up:
o
Understand the concept of integration.
o
Practice basic integration rules.
o
Introduce simple and compound interest calculations. Start using your
calculator for these.
Study Tips for Phase 1:

No shortcuts on Math: If you don't grasp the fundamentals, CM1 will be
incredibly difficult. Be patient and thorough.

Practice, Practice, Practice: Math is learned by doing. Work through
countless examples.

Understand Why: Don't just memorize formulas. Understand the logic behind
them.

Keep a Math Notebook: Jot down key formulas, concepts, and common
pitfalls.
Phase 2: Core CM1 Syllabus (Weeks 5-16)
This is where you'll systematically go through the CM1 Core Reading. Aim to cover
roughly one chapter (or a significant part of a large chapter) per week.
Goal: Understand all CM1 concepts, formulas, and their applications. Be able to
solve standard problems.
Resources:

IFoA Core Reading (CM1): This is your Bible. Read it carefully.

ActEd Study Material (highly recommended): ActEd provides study notes,
question packs, and revision notes aligned with the IFoA Core Reading. If you
can afford it, this is an excellent investment, especially for self-study. Their
"Course Notes" break down the Core Reading into more digestible chunks
with examples.

CM1 Core Reading Syllabus Document: Refer to this to track your progress
and ensure you cover all topics.

Scientific Calculator: Your constant companion.

CM1 "Formulae and Tables": Keep this handy.
General Weekly Study Structure for this Phase:
1. Read Core Reading/ActEd Notes: Spend 2-3 hours reading through the
assigned chapter(s). Make notes, highlight key definitions, and understand the
examples.
2. Work Through Examples: The Core Reading and ActEd notes have
embedded examples. Work through them step-by-step without looking at the
solution first.
3. Practice Questions (End of Chapter/Question Bank): Dedicate 3-4 hours
to solving practice questions related to the chapter.
o
Start with easier questions to build confidence.
o
Gradually move to more complex ones.
o
Time yourself as you get more comfortable.
4. Review and Summarize: Spend 1-2 hours reviewing what you've learned.
Create your own concise summary notes or flashcards for key formulas and
concepts.
Proposed Chapter Progression (adjust based on your pace):
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Week 5: Chapter 1: The time value of money
o
Interest rates (simple, compound)
o
Accumulation and discount factors
o
Nominal vs. effective rates
o
Force of interest
Week 6: Chapter 2: Equations of value
o
Present value and accumulated value
o
Concept of an equation of value
o
Solving for unknown interest rates
Week 7: Chapter 3: Level annuities
o
Annuity-due vs. immediate
o
Perpetuities
o
Formulas for an, sn, aˉn, etc.
Week 8: Chapter 4: Annuities with varying payments
o
Increasing/decreasing annuities (arithmetic and geometric progression)
o
Continuous annuities
Week 9: Chapter 5: Loans
o
Loan schedules
o
Amortization
o
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Flat rate vs. effective rate
Week 10: Chapter 6: Project appraisal
o
Net Present Value (NPV)
o
Internal Rate of Return (IRR)
o
Payback period
Week 11: Chapter 7: Fixed interest securities
o
Bonds (coupon, redemption yield, duration, convexity)
o
Pricing bonds
o
Immunisation (basic concepts)
Week 12: Chapter 8: Introduction to derivatives
o
Forwards, futures, options, swaps (basic concepts)
o
No-arbitrage pricing (basic)
o
Binomial trees (basic)
Week 13: Chapter 9: The term structure of interest rates
o
Spot rates, forward rates
o
Yield curves
o
Theories of term structure
Week 14: Chapter 10: Interest rate risk
o
Duration and convexity revisited in context of risk
o
Immunisation strategies
Week 15: Revision & Weak Areas:
o
Go back through any chapters you found particularly challenging.
o
Rework problems you got wrong.
o
Consolidate your formula sheet.
Week 16: More Practice & Initial Mock:
o
Work through more past exam questions (see below).
o
Attempt your first full mock exam under timed conditions.
Study Tips for Phase 2:

Active Reading: Don't just passively read. Engage with the material. Ask
yourself "Why?" and "How?"

Understand Derivations: While you don't need to derive every formula from
first principles in the exam, understanding how the formulas are derived helps
in memorization and problem-solving.

Create a Formula Sheet: As you go through each chapter, create your own
concise formula sheet. This will be invaluable for revision.

Highlight Difficult Concepts: Mark sections you find challenging and revisit
them.

Teach it: Try to explain concepts to an imaginary person or a study buddy.
This reinforces your understanding.

Don't ignore the theory: While CM1 is mathematical, there are theoretical
aspects. Pay attention to definitions, assumptions, and explanations.
Phase 3: Revision and Exam Practice (Weeks 17-20 + 18 days)
This is the most critical phase. Your goal is to consolidate knowledge, identify
weaknesses, and build exam technique.
Goal: Fluency in all CM1 topics, efficient problem-solving, and strong exam
technique.
Resources:

IFoA Past Exam Papers: The most important resource. Available on the IFoA
website.

Solutions to Past Papers: Crucial for understanding how to structure
answers and award marks.

ActEd Revision Notes/Flashcards: If you have them, use them extensively.

Your own formula sheet and summary notes.

CM1 "Formulae and Tables".
Weekly Breakdown:
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Week 17: Targeted Revision & Initial Past Papers
o
Review your summary notes for all chapters.
o
Start doing full past papers, but don't time yourself initially. Focus on
getting the correct answers and understanding the steps.
o
Identify recurring themes and common question types.
Week 18: More Past Papers & Weakness Analysis
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Continue working through past papers.
o
Start timing yourself for individual questions or sections.
o
Analyze your mistakes: Was it a conceptual error, calculation error, or
time management issue?
o
Revisit Core Reading for topics you're consistently getting wrong.
Week 19: Full Mock Exams (Timed) & Final Review
o
Do at least 2-3 full mock exams under strict timed conditions (3 hours
15 minutes).
o
Simulate exam conditions as closely as possible (no notes, just
calculator and "Formulae and Tables").
o
Review your mock exam performance thoroughly. Where did you lose
marks?
Week 20: Intense Practice & Fine-tuning
o
Focus on your weakest areas identified from mocks.
o
Practice difficult problem types.
o
Ensure your formula sheet is perfect and you know when to apply each
formula.
o
Work on exam technique: neatness, showing working, calculator
efficiency.
Remaining 18 Days (Leading up to Nov 22nd):
o
Last-Minute Mock: Do one final mock exam closer to the date if time
permits.
o
Formula Review: Continuously review your formula sheet.
o
Quick Practice: Do short bursts of practice questions.
o
Rest and Recuperation: Don't burn out. Ensure you get enough sleep
and take breaks.
o
Logistics: Confirm exam venue, time, required materials (ID,
calculator, "Formulae and Tables").
Study Tips for Phase 3:

Past Papers are Gold: They are the best indicator of what to expect and how
to answer.

Practice Under Exam Conditions: This is crucial for building stamina and
managing time.

Detailed Error Analysis: Don't just mark questions wrong. Understand why
you made the mistake.

Time Management: CM1 can be time-pressured. Practice allocating time per
mark. If a question is worth 5 marks, don't spend 20 minutes on it.

Presentation: Practice neat and logical presentation of your solutions. Show
all your working steps clearly. Marks are awarded for method.

Don't Cram: By this stage, you should be consolidating, not learning new
material.

Stay Positive: It's a challenging exam, but consistent effort pays off.
General Study Advice for CM1

Consistency is Key: Short, regular study sessions are more effective than
infrequent, long ones. Aim for 2-3 hours daily during weekdays and longer
sessions on weekends.

Take Breaks: Your brain needs time to process information. Use the
Pomodoro technique (25 min study, 5 min break) or similar.

Stay Hydrated and Eat Well: Fuel your brain!

Find a Study Buddy (Optional but helpful): Explaining concepts to
someone else solidifies your understanding.

Join Online Forums: If you get stuck, actuarial forums (e.g., Actuarial
Outpost) can be helpful for asking questions.

Prioritize Understanding over Memorization: While formulas need to be
memorized, true understanding allows you to apply them in varied scenarios.

Be Patient with Yourself: Learning complex material takes time. There will
be frustrating moments, but persevere.

Know Your Calculator Inside Out: Efficiency with your calculator can save
precious minutes in the exam.
This is a demanding but achievable plan. Starting from scratch means you'll have to
be diligent, especially in the initial math foundation phase. Good luck with your CM1
studies!