# Free PMP Exam Sample Question 04 (Earned Value)

Do you know your Earned Value Formulas? Here is a tough PMP Exam sample question that not only requires you to identify the correct formula, but then you also have to adjust the formula or you'll get the wrong result.

The Free PMP Exam Simulator gives you access to 170 questions in a simulated environment.

## Video Transcript

Hello, I'm Cornelius Fichtner and I have another free PMP Exam Sample Question for you from the PM Exam Simulator. Here is the question.

If the CPI is 1.03 and AC is $6,000, how much is EV?

And of course, based on this question, you can immediately see this is an Earned Value question where the CPI is the Cost Performance Index, AC is the Actual Cost and EV is Earned Value.

Here are your potential answers.

It could be: A) 200

It could be: B) 7,000

It could be: C) 6,180

Or D) 7,230

And I also have a quick hint for you because for this particular question, you have to identify the correct formula to calculate the CPI and then you have to invert it. All right. Here is the question and your four answers, and as always, here are 30 seconds for you to think about it.

And we are back. With 30 seconds enough time for you to figure this one out? If not, then press pause right now because here is the answer. The correct answer is of course, C) $6,180.

All right. How do you figure this one out? Well, first of all, you have to realize is that based on the question, CPI 1.03, AC $6,000, how much is EV? There is no formula, no standard formula at least to calculate this. But when you think about this for a little while, you realize that wait a minute, that's the formula down there.

CPI equals Earned Value divided by Actual Cost

And from this formula, I don't have Earned Value but I have CPI and AC. So what you want to do is you want to reverse or rather inverse this formula to calculate:

Earned Value equals CPI multiplied by Actual Cost

And then, you multiply 1.03 by $6,000 and you end up with $6,180. It's that easy when you know how it's done.

And to practice how it's done, why don't you stop by at the Free PM Exam Simulator for more free sample questions just like this one.

Thank you very much for your time and until next time.