A basic knowledge of calculus is assumed. Students' main activities are solving problems. After mastering the material in this course, students would be prepared to take the Society of Actuaries Examination 140. This material also is tested on Part 4 of the Casualty Actuarial Society Exams. The present text is The Theory of Interest by Kellison.
Development is based on a stochastic approach to life insurance models.
There are weekly homework assignments, three or four midterms, and a final exam. The required text is Actuarial Mathematics by Bowers, Gerber, Hickman, Jones, and Nesbitt. Material in this course is based on the syllabus of Course 3 of the Casualty Actuarial Society and the Society of Actuaries. This is a required course for all students in actuarial science. This course is designed to aid students in their preparation for the exams of the Society of Actuaries and the Casualty Actuarial Society.