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​What is ACST2002?

ACST2002 is a core actuarial unit that makes up one half of the CM1 exemption. It marks your first real exposure to the mathematical foundations of finance and introduces key concepts that will recur throughout your degree. While the ideas themselves aren’t overwhelmingly complex (compared to other units, *cough* STAT2372), the challenge lies in their implementation. Success in this unit depends heavily on developing a deep understanding of financial mathematics and applying it flexibly to a wide range of problems.

What is the most challenging part of the unit?
 

The most difficult aspect of ACST2002 was determining the timing of cash flows and choosing the right formula to apply. Drawing out a timeline for every question was crucial — it clarified the structure of cash flows and helped identify which version of a formula to use. I also struggled initially with continuous interest and integration-based discounting, which lacked the formulaic structure of topics like mortgage repayments. Mastery came from focusing less on memorisation and more on understanding the core concepts. 

 

​How do you balance your academics with everything else?
 

This semester was demanding, with three exemption units, ASSOC responsibilities, and part-time work. I managed by allocating time efficiently and resisting the urge to over-invest in one subject at the expense of others. Despite the workload, I found that I still had free time — and making space for rest was key to staying motivated. We're in a unique phase of life with minimal responsibilities compared to what’s ahead — enjoy it, and don’t burn out!

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General Study Tips/Techniques for Content

• Work through past papers and SGTAs — prioritise understanding why formulas work, not just how to apply them.

• Practice deriving equations from first principles — it solidifies your conceptual foundation.

  • Recognise that most formulas are variations of basic geometric or arithmetic sequences and how they interlink with other formulas.

• Map out how formulas connect — there's often more than one way to solve a problem, so flexibility is crucial.

• Don’t rely too heavily on rigid methods; adjust your approach to suit the question. For example, knowing when to use payments in arrears vs. in advance can save you time.

• Study in groups — even if your friends have different strengths, collaboration leads to more efficient and comprehensive understanding.

 

Final Exam study 

• Complete as many past exam papers as possible — identify recurring question types and patterns.

• Always draw a timeline of cash flows — it simplifies complex scenarios and reduces careless mistakes.

• Write out key formulas and cross-check your logic with reasonableness tests — does your answer make sense in the context of the question?

• Simulate exam conditions when practising to build your speed and accuracy under pressure.

• Don’t skip “easy” questions in your revision — solidifying the basics gives you a time advantage in the exam.

• Make sure to read the questions carefully - I've been tricked countless times by wording, such as “effective vs nominal interest rates”. 

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