The approved calculating device for use during the Financial Mathematics examination administered by the Society of Actuaries is a crucial tool. These devices, typically financial calculators, facilitate complex calculations related to time value of money, annuities, and other financial instruments. For example, these calculators enable the efficient computation of present values, future values, and internal rates of return, which are fundamental in solving problems related to interest theory and financial risk assessment.
The availability of these devices during the examination is intended to streamline the computational process, allowing candidates to focus on demonstrating their understanding of the underlying financial principles and their ability to apply these principles to problem-solving. Historically, the explicit permission to use these tools acknowledges the practical application of actuarial science, where efficiency in numerical calculations is often necessary. Their use benefits the candidate by reducing calculation time and minimizing the potential for arithmetic errors, ultimately contributing to a more accurate and reliable assessment of their financial mathematics knowledge.
