Project Manager Street Smarts: A Real World Guide to PMP® Skills

Appendix A. Solutions

Phase 1 Solutions

The following are the solutions for the Hands-on sections for Phase 1.

Hands-on 1.1: Testing Your Knowledge of Finance Principals

Here are the correct answers and how we arrived at them.

1. $98.00 now is equivalent to $105.60 one year from now.

   False: Total amount accrued = $98.00 (1.05) = $102.90

2. $200.00 one year past is equivalent to $205.00 now.

   False: Required investment = $205.00/1.05 = $195.24

3. $3,000.00 now is equivalent to $3,150.00 one year from now.

   True: Total amount accrued = $3,000.00 (1.05) = $3,150.00

4. $3,000.00 now is equivalent to $2,887.14 one year ago.

   False: Total amount accrued = $2,887.14 (1.05) = $3,031.50

5. Interest accumulated in one year on an investment of $2,000.00 is $100.00.

   True: Interest = $2,000.00 ...