Hey there finance pros.
I am new here in the forums and just registered for the first time in the CFA program.
Borrowed a friend’s Schwesser materials from 2015 and read through the first volume of the CFAI curriculum. I’m done with ethics (scored consistent 85-90%) in the mock topic tests, and I’m now at TVM.
I understand the readings just fine but I have hard time recalling the formulas and solving problems regarding the application of TVM basics. It might be because I have a BA in Psychology and had very little math back on college. I’m currently working as a lead product controller at one of the big four.
Any tips you can give me?
Figure out how to do the problems using your calculator. Didn’t memorize a single formula for that section.
Draw out a time line for the problem, then solve using the calculator.
Definitely recommend using time lines for the tricky questions with separate periods like saving for retirement etc. Make sure you know what time period the calculated PV or FV from your calculator belongs to, especially for problems with both ordinary annuity and annuity due.
Formulas may help you understand the concept but you shouldn’t be needing them for TVM problems (except for a perpetuity which is PV = C / r).
For better understanding, listen to the lectures of Arif Irfanullah. You can find them on youtube. https://www.youtube.com/watch?v=ZYUPhpY_QD0&list=PLcmt2ZfkV0M2Fgf6zLEf5CMWrVZKfdJQ4
His lectures are very very helpful to me and in a day, I completed the TVM .