The CPCU® 540 exam is the fourth CPCU® exam in a series of eight required exams to complete your CPCU® designation.
This exam consists of 85 multiple choice questions split up into two sections:
According to the National CPCU® pass rates, the CPCU® 540 is the hardest CPCU® exam with a 72.98% pass ratio. The numbers don’t lie; the CPCU® 540 exam is the largest in terms of content (12 chapters) and is by far the most math-intensive of all the CPCU® exams. This exam will test your will to complete the CPCU®; many students get stuck on the CPCU® 540 and give up after failing a couple of times. Prepare yourself now and set aside a little extra study time for the CPCU® 540 because there are a lot of new concepts to grasp and a lot of formulas to memorize.
For more information, see our CPCU® 540 difficulty blog.
The CPCU® 540 exam focuses on the topics of finance and accounting including financial statements, valuations, investment management and capital management. The reason this exam is so tough is because the questions are heavily math intensive. There are A LOT of formulas to know for the CPCU® 540 exam.
According to The Institutes, there are 34 math formulas that you’ll be required to know to pass the CPCU® 540 exam, but we estimate that there’s closer to 80 formulas that you need to pass the CPCU® 540. Of these 34 formulas; 7 of them are provided to you at the exam (The Institutes will give you the formula) and 27 are not provided to you at the exam (meaning you’ll have to memorize the formula). In addition, The Institutes will provide you with 4 tables to use on the CPCU® 540 exam including: future value table, present value table, future value of an annuity table and present value of an annuity table. You not only have to memorize the formulas but you have to know when to use each formula and how to apply the formulas to a given case question.
For a full list of CPCU® 540 formulas, download our CPCU® 540 practice exam and list of formulas.
The formulas are the most important aspect of the CPCU® 540 exam, in particular, the formulas and content from CPCU® 540 chapter 6 (Cash Flow Valuation) and CPCU® 540 chapter 7 (Bonds and Stocks) are crucial to passing the CPCU® 540 exam.
For more information about exactly which chapter 6 and chapter 7 formulas are important, see our CPCU® 540 most important topics blog.
The Institutes will provide you a small list of some formulas on the CPCU® 540 exam, you do not need to memorize these formulas because they will be given to you. The list of formulas provided to you on the CPCU® 540 exam includes:
These are the 3 most important formulas on the CPCU® 540 exam, memorize these:
For more information about the CPCU® 540 formulas that you need see our blog on the most important CPCU® 540 formulas.
According to The Institutes, this is the criteria for an approved calculator:
Examinees may bring their own solar or battery powered calculators, including business/financial calculator, as long as the calculators are:
For more information about the calculators you can use on the CPCU® 540 exam and how to get your calculator approved, see our CPCU® 540 calculator blog.
For more insight into the CPCU® 540 exam, check out our other helpful resources:
CPCU® 540 online course that cuts out the fluff for easier studying and comprehension so you can pass in less time with less studying
Over 440 practice exam questions for the CPCU® 540 formatted exactly like the real exam. Giving you a real exam feel