CFA Level 1 - Quantitative Methods Review for CFA Level 1 Prep

Now that you have finished studying Quantitative methods for CFA Level 1, you need to spend a session to review important areas. It could be an additional day or extra time depending on you time availability. 

Global Formula & Concept Review

Quick tour of all Quant LOS

Time Value of Money (TVM): discounting/compounding, annuities, perpetuities, NPV/IRR.

Descriptive statistics: mean/median, variance/Standard deviation (SD), coefficient of variation, skewness, etc.

Probability: basic rules, conditional probability, Bayes, expected value and variance of random variables.

Sampling & estimation: standard error, point vs interval estimate.

Hypothesis testing & Confidence Interval: what you did Days 10–12.

Correlation & simple regression: slope, intercept, R², limitations.

• For each area, write down 3–5 key formulas 
• Do Topic‑wise Mixed Question Sets (VImp)
• Do it “slow but correct”, speed issue to revisit later in the full‑curriculum phase.

Simulate a compact Quant exam:

• Take 35–40 Quant questions from across topics, mixed and not in order, under a time cap (~60 minutes).
• No pausing to check; just mark guesses.

Review (at least another 45–60 min):

• Build a final Quant error sheet:for review later
• Spend a short block doing 5–10 questions on the single area that still feels worst after the mini‑mock

Here are some Quant review resources. The official CFA curriculum is always by far the best resource for preparation. These are additional helpful materials.

Level 1 Quant Cheat Sheet

CFA Level 1 Quantitative Methods Cheat Sheet 2026

Sample Questions

CFA® Level 1 Quantitative Methods (2025) questions and answers

CFA Level I Crash Course | Session 4: Quantitative Methods - Day 4

Day 5: CFA Level I Quant Study Plan: Rates, Compounding, and TVM Practice - 90 Days to CFA

Day 5 of the CFA Level I study plan is focused on rates, compounding, and mixed time value of money practice. The goal today is not to memorize more formulas. The goal is to learn how to identify the problem type before touching the calculator. You have already worked through present value, future value, annuities, and cash-flow timing. Today, the focus is on rates, compounding, discounting, and mixed time value of money questions.

Disclaimer: This is a study-plan blog post, not official CFA curriculum material. Use it to organize your preparation, then rely on your CFA materials, notes, or question bank for the actual readings and problem sets.

Checklist before starting

Spend 10 minutes setting up before you begin.

• Calculator reset: Clear TVM memory. Check decimal places, payments per year, compounding periods per year, and BEGIN/END mode.
• Formula sheet: Open the section on effective annual rate, periodic rate, present value, future value, annuities, and perpetuities.
• Flash Cards - Keep them nearby, ready to fill or filled ones
• Timeline habit: Keep one blank page only for cash-flow timelines.
• Question bank filter: Select time value of money questions that mix single sums, annuities, rates, and compounding.
• Timer: Use three blocks: 40 minutes study, 35 minutes questions, 15 minutes review.

Your prep goal today is simple: reduce mechanical errors before they become repeated habits.

Daily Ethics reading and prep

Spend 10-15 minutes on Ethics before the Quant block.

Today’s Ethics focus: integrity and professional judgment.

Read one short scenario involving an analyst who receives pressure from a supervisor, client, or colleague. Ask yourself:

• Is the analyst being pushed to ignore evidence?
• Are facts and opinions clearly separated?
• Is the recommendation based on reasonable analysis?
• Is there any misleading communication?
• What should the analyst do before acting?

Then complete 5 Ethics warm-up questions or review 5 Ethics flashcards. Log any mistake as a Concept gap or Reading error.

Main study block

Today’s Quantitative Methods focus is mixed time value of money practice.

Study these subtopics:

• Nominal rate: The quoted annual rate before adjusting for compounding.
• Periodic rate: The rate applied each period.
• Effective annual rate: The annual rate after compounding is considered.
• Compounding frequency: Annual, semiannual, quarterly, monthly, or continuous compounding.
• Discounting: Moving future cash flows back to the present.
• Compounding: Moving present cash flows forward to the future.
• Perpetuities: Level payments that continue indefinitely.
• Mixed TVM questions: Problems where you must decide whether to solve for PV, FV, PMT, N, or I/Y.

Today’s main skill is diagnosis. Before calculating, ask: “What variable is the question really asking me to solve?”

25-question practice target

Complete 25 questions today.

Use this breakdown:

• 4 questions: Nominal, periodic, and effective annual rates
• 4 questions: Compounding and discounting single sums
• 4 questions: Ordinary annuity and annuity due review
• 3 questions: Perpetuity calculations
• 3 questions: Mixed TVM variable identification
• 2 questions: Calculator setup and sign convention checks
• 5 questions: Ethics warm-up or scenario questions

For each Quant question, write down the unknown variable before solving: PV, FV, PMT, N, or I/Y. This one step can prevent many wrong answers.

Five-question review checkpoint

End the session by answering these five questions:

1. Can I explain the difference between nominal, periodic, and effective annual rates?
2. Did I identify the unknown variable before solving each TVM problem?
3. Which caused more errors today: rate conversion, cash-flow timing, or calculator input?
4. What was my accuracy on the 20 Quant questions and the 5 Ethics questions?
5. Which TVM concept should I revisit before moving into statistics and probability?

Mistake log - As we have been doing so far, create a mistake log book. It will be easy to refer back to those

After practice, record every missed or guessed question using these four labels:

• Concept gap: I did not understand the question's underlying idea.
• Formula gap: I understood the idea but forgot the correct formula or setup.
• Calculator error: I entered values incorrectly, used the wrong mode, forgot to clear memory, or made a sign error.
• Reading error: I misunderstood the wording, timing, rate, or variable being asked.

For Ethics mistakes, use mainly Concept gap or Reading error.

Day 6 begins the next Quantitative Methods block: descriptive statistics, measures of central tendency, dispersion, probability foundations, and distribution basics.

Day 3: CFA Level I Time Value of Money (TVM) Study Plan

 You are now 3 days into your CFA Level 1 preparation.

You’re building your August 2026 CFA Level I study rhythm one focused day at a time. This post is a practical study plan (not official CFA Institute curriculum material), designed to help you master Time Value of Money basics with clean calculator work and a practice schedule.

Take 10 minutes to get things together and prepare a checklist for preparation

Checklist

Calculator

Cleared workdesk

Study material, notes, timer

Flash cards - filled out or empty ones

Question bank

Notebook, for logging progress and errors plus any other inputs.

Daily Ethics mini-block (10 minutes)

·       Read the Code of Ethics once, slowly.

·       Then do one reflection prompt: “Where could I be tempted to ‘round’ or ‘massage’ numbers at work, and how would I handle it?”

·       Finish with 5 quick ethics warm-up questions (any ethics Q-bank set).

Main study block: Time Value of Money foundations (55–65 minutes)

Focus on understanding inputs, timing, and how rates behave.

A. Rates and compounding

·       Simple vs compound growth (what changes when compounding is introduced)

·       Nominal rate vs effective annual rate (EAR)

·       Compounding frequency: annual, semiannual, monthly

·       Converting between rates when compounding frequency changes

B. Discounting vs compounding (direction matters)

·       Future value intuition: “move money forward in time”

·       Present value intuition: “bring money back to today”

·       Sign conventions on the calculator (why PV and FV often have opposite signs)

C. Return measures you’ll see often

·       Holding period return (HPR) concept and basic computation

·       Annualizing intuition (don’t overcomplicate today—get the idea right)

4) 25-question practice target (30–40 minutes)

Do these closed-book. After each set, quickly review wrong answers before moving on.

20 Quant (TVM) questions

·       8 × EAR vs nominal rate conversions

·       6 × PV/FV single cash flow (different compounding frequencies)

·       6 × discounting/compounding direction + sign convention

5 Ethics questions

·       2 × integrity/truthfulness scenario checks

·       3 × professional conduct “best action” questions

5) Mistake-log (write 3–5 bullets)

For every missed question, label it as one of:

·       Concept gap

·       Formula gap

·       Calculator error

·       Reading error

If you miss an ethics question, classify it mainly as Concept gap or Reading error.

6) Five-question review checkpoint (5–10 minutes)

Answer these from memory:

1.      What’s the difference between a nominal rate and EAR?

2.     If compounding frequency increases (same nominal rate), does EAR go up or down?

3.     What does “discounting” mean in plain language?

4.     Why do PV and FV often have opposite signs on the calculator?

5.      What is a holding period return measuring?

·       Note: this is a study plan, not official curriculum material

Important to do

·       20 TVM questions breakdown

·       5 Ethics warm-up questions

·       Mistake-log categories

·       Prepare flash cards from today's formulas

Finally

·       Quick recap: rates, direction, calculator discipline

Tomorrow preview

Tomorrow is Day 4, where you’ll push TVM further into annuities and cash-flow timing (PMT problems) and build speed with repeatable calculator steps.

Did you find this useful> Can you please comment?

Were there many mistakes after your readings and QA session. Remember, its important to log your errors for future reference. 

CFA Level 1 for August - What to Prepare Today - Day 1 | 90 Days to CFA

CFA Level 1 90 Days Journey

Suppose you are starting your CFA Level 1 prep today for August. The right way would be to use the information accumulated from years of CFA prep stories. August exams is approximately 90 Days away. Here is how to start the prep journey.

Very Important

Choose the right starting topic

Evidence‑based study orders for CFA Level 1 recommend starting with Quantitative Methods, especially time value of money, basic statistics, and probability, because these feed into Fixed Income, Derivatives, and Portfolio.

Concrete Day 1 Plan  (Assuming 3-4 hours)

1. Understand format for exams

2. Learn the ecosystem, see dashboard and topics 

(If you haven't done these so far!)

3. Study the first Quant reading on time value of money and cash flow basics from your notes/videos/study provider content

4. Immediately do the end‑of‑reading / topic questions (aim 20–30 questions) to cement formulas like , , annuities, and basic return measures

 You don't want me to explain what FV, PV are!

4. Read a short summary of the Code of Ethics and Standards of Professional Conduct, without trying to memorise every detail

A daily dose of ethics keeps one acquainted with the nuances of Ethics and most study providers suggest that. 

5. Start an excel tracker of topics covered (or you can download those available), and cross off topics. A calendar always helps

6. Start a flash card of key formulas and definitions

7. Write down the exact Day 2 plan.

Come back tomorrow for the Day 2 plan