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Exam PgMP topic 1 question 12 discussion

Actual exam question from PMI's PgMP
Question #: 12
Topic #: 1
[All PgMP Questions]

What is the present value of a program that will be worth $3,567,000 if it lasts for six years and the rate of return is five percent?

  • A. $1,550,850
  • B. $3,532,000
  • C. $2,502,750
  • D. $2,661,750
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Suggested Answer: D 🗳️
by Stu1900 at July 7, 2021, 10:49 a.m.

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tungdt
11 months ago
D is right answer
upvoted 1 times
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FareedKamran
1 year, 1 month ago
Dont Expect Such kind of Questions in PgMP Exam
upvoted 1 times
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SyedCert
3 years, 7 months ago
One oversight in an earlier one, $3,567,000 (1/(1+0.05)^6)= 2,661,750 . 6 is for 6 years and 0.05 is for 5%.
upvoted 3 times
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SyedCert
3 years, 7 months ago
$3,567,000 (1/(1+005)^6)= 2,661,750
upvoted 3 times
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Stu1900
3 years, 10 months ago
PLease can you explain how the answer is derived?
upvoted 1 times
ReevesT
1 year, 4 months ago
Formula: PV = FV / (1+i)^n PV is Present Value FV is Future Value i is Interest n is number of years You will need a Scientific calculator using the big X to exponent Y button. Here is the order of operations: 1. 1 + the interest rate is 1.05 2. 1.05 to the 15th power 3. divide $3,567,00 by that number But with the scientific calculator, do the formula: $3,567,000 / (1.05)^16
upvoted 2 times
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