L2 Unit – 10 – Quiz

Mr. Rishab needs Rs.11000 annually for 5 years at the end. If the rate of interest is 8% p.a. then how much money he should invest today?

A client has had a long term asset allocation of 70% growth, 30% defensive. She is looking to increase it to 80% growth, 20% defensive due to the strength of the market. Her Wealth Manager suggests she could retain her existing allocation. This is an example of

Ms. Kavitha wants to know what will be the value of Rs.8,00,000 after 7 years by considering the inflation rate 6% p.a.?

The difference between a deduction and a rebate is that

What is the second step in Wealth Planning process?

Which of the following form of co-ownership must be created by an instrument of deed or will?

Which of the following will have least importance for a young unmarried individual who got the job recently with no dependents on him?

The Internal Rate of Return is

A wealth adviser must demonstrate to the underwriter that they have considered

When can a trust created by a will be revoked?

Which of the following statements does not reflect the meaning of wealth planning?

Participating policies are those where

What is the present value of an annuity which pays Rs.10,000 for 5 years at the end of each year? ROI is 9% p.a.

A life insurance contract is based on the principle of

Mr. Deepak invested Rs.77000 in a scheme and got Rs.99000 after a period of 4 years. Calculate the CAGR of this investment.

A 10 year 8% bond of face value Rs.1000, interest payable semi annually maturing in six years from today is available at a yield to maturity of 6%. It is likely to be priced at

Calculate the yearly premium of Mr. X at the age of 30 and the sum assured is Rs.45,000, if tabular premium is Rs.25.83, rebate for modal premium is Rs.2 yearly. Sum assured rebate is Rs.1.50 less for Sum assured Rs.50,000 and above.

The standard deviation of a security Y is 14% and that of market is 18%. The coefficient of correlation is 0.23. Calculate what % of total variance of security Y is explained by the market?

Mr. Arpit invested Rs.1,75,000 in an investment that gives Rs.32,000 for the first three years and Rs.40,000 for next three years. If the discount rate is 10%. Calculate the net present value of these cash flows.

Mr. Keshav has generated long term capital gain on gold amounting Rs.4,00,000, short term capital loss of equity Rs.80,000 and short term capital loss on land amounting Rs.2,00,000. Besides he has income from other sources Rs.2,10,000. Compute his tax liability?

Mr. Jogen 57 years old and going to retire at the age of 58 years (after completing 33 years and 9months of service) is working as an assistant secretary in petroleum ministry. He gets a salary of Rs.48,000 p.m. His present household expenses per month are Rs.22,000. What would be his house hold expenses at the age of 62 if his household expenses are curtailed by 20% after retirement? (Consider inflation rate 5% p.a.)

The average inflation over the last three years is 8.5 % p.a. You invested Rs.2 lakh in a security three years ago which you have redeemed for Rs.2.6 lakh. What real return have you obtained from investment?

Mr. Kapoor has earned total income of Rs.8,60,000 from a trading business. He also earned Rs.6,00,000 from growing and manufacturing of Tea in India. What shall be his tax liability?

A life insurance company is offering a life insurance policy for Mr. Narayan wherein 20 annual contribution of Rs.60,000
starting from today. Given the following three maturity figures after deduction of total charges and with a sum assured of Rs.1 crore for the whole term as follows
1) Guaranteed maturity benefit of Rs.7,41,741
2) Non-guaranteed maturity benefit @6% p.a. Rs.9,08,071
3) Non-guaranteed maturity benefit @10% p.a. Rs.14,60,179
The policy holder has provision that in case of any casualty with the life insured, the company shall be paying higher of the then value available fund value or applicable sum assured. Narayan wants to provide by the company if stand alone term insurance of Rs.1 crore is available of Rs.37,000 p.a. according to you the same is

Ms. Nimita Shah, aged 34 years as on 2nd April 2018, is Vice President in a Mumbai based
firm. She has twin daughters Revati and Savitri of age 12 years and she is the sole guardian of her children pursuant to her recent divorce. Her main concern is about the higher education of both children starts after 6 years, present cost Rs.4.5 lakh p.a. for each child for a term of 5 years. You as a CWM advice her to invest suitably for the higher education of both children on semi annual basis for six years?
(Inflation rate is 6% and the interest rate on deposits is 10% per annum)