Introduction to Actuarial and Financial Mathematical Methods


  • Stephen Garrett, Professor of Mathematical Sciences, University of Leicester, UK

This self-contained module for independent study covers the subjects most often needed by non-mathematics graduates, such as fundamental calculus, linear algebra, probability, and basic numerical methods. The easily-understandable text of Introduction to Actuarial and Mathematical Methods features examples, motivations, and lots of practice from a large number of end-of-chapter questions. Questions range from short calculations to large project-based assignments, all designed to promote independent thinking and the application of mathematical ideas. Model solutions are included.

The intuitive organization of Introduction to Actuarial and Mathematical Methods maximizes its usefulness as a means of self-study and as a reference source. Financial concepts and terminology introduce every mathematical concept and theory. For readers with diverse backgrounds entering programs of the Institute and Faculty of Actuaries, the Society of Actuaries, and the CFA Institute, Introduction to Actuarial and Mathematical Methods can provide a consistency of mathematical knowledge from the outset.
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Actuarial and finance students worldwide who need to learn or revisit fundamental applied mathematical tools and techniques


Book information

  • Published: April 2015
  • ISBN: 978-0-12-800156-1


"This book is an ideal introduction to the mathematical background required for students who wish to embark on an actuarial or financial career. It will be especially useful to students who have not taken a mathematical degree. The extensive examples throughout the book show how the mathematics can be used in practice and enable students to gain a thorough understanding of the material."  --John Millett, University of Kent

"If engineering students switch to actuarial science in their junior or senior year, this text can teach them how to apply mathematical concepts to actuarial science problems.  It’s a great refresher of the topics that serve as the foundation of a successful actuarial career."  --Diane Evans, Rose-Hulman Institute of Technology

Table of Contents

I: Fundamental Mathematics

1. Mathematical Language

2. Exploring Functions

3. Differential Calculus

4. Differential Calculus II

5. Sequences and Series

6. Integral Calculus I

7. Integral Calculus II


II: Further Calculus

8. Complex Numbers

9. Introductory Linear Algebra

10. Probability Theory

11. Implicit Functions and ODEs

12. Multivariate Calculus

13. Introductory Numerical Methods


III: Worked Solutions to Questions


IV: Appendices

A. Mathematical Identities

B. Proof of the Chain Rule

C. Long Division in Algebra