FPSBI/M-VI/11-01/09/WN * FV(10%,15,-36000,0,1)

Transcription

1 Solutins : Vinod Gupta 1) A) Initial Investment= lakh Year 1 profit= 3.50/ lakh Year 2 profit= 4.74/ lakh Year 3 profit= 5.17/ lakh Year 4 profit= 6.35/ lakh Year 5 profit= 7.10/2+(25*.25)/ lakh IRR= 8.20% 2) B) The cost of construction incurred five year ago Cost escalation in construction over the last five 70% years Currect cost of construction Insurance require for building on reinstatement basis Insurance require for household contents on market Total Sum Insurance required * ) B) According to the Insurance company projections, the accumulated amount at vesting date is The rate of returns in the immediate annuity pension plan would be FV(10%,15,-36000,0,1) % p.m. RATE(180,11500, ,0,1) Vinod, at this stage, wants to increase his premium amount suitably so as to get this accumulated amount at he end of annuity payment period. Therefore, the revised corpus to be accumulated for immediate annuity of Rs. 11,500 p.m. for 15 years and return of purchase price Assuming the corpus accumulated for annuity is Rs. 100 Monthly pension would be Rs PMT(0.6141%,180,-100,100,1) Thus pension is Rs p.m. by investing Rs. 100 at % p.m. effective so that he would get Rs. 100 at the maturity

2 So to get pension of Rs. 11,500 p.m. The corpus should be Rs *11500/ ) C) He needs to further invest Rs p.a. PMT(10%,11,200000, ,1) 5) C) Total cost of vacation tour= *100/10 Amount to be financed= Rs. 180,000 is the PV of annuity of Rs. 7,500 payable per month for 36 months PV PMT NPER 36 Rate 2.38% p.m. RATE(36,-7500,180000,0,0) Therefore, Annual Effective Rate of Interest 32.61% 6) B) U/s 64(1A) of Income Tax Act (1+2.38%)^12-1 7) C) Since, Long term capital gain for holding of equity shares for more than one year is exempt. 200 shares purchased in and alloted bonus shares sale proceeds exempt from Long term capital gains. Sale of equity share for holding less than one year is liable to short term capital gain Sale Consideration of 100 share issued as Right issue *100 Less : Cost of 100 right shares *100 Short term capital gain ) D) 9) B) 10) B)

3 Sum Assured Add Bonus 45*600* *600* *600* Total Claim ) A) Deduction allowed u/s 24 under Income tax Act Apr Mar Apr Mar Apr Mar Apr Mar Apr Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar IPMT(11.25%/12,49,180, ,0,0) IPMT(11.25%/12,50,180, ,0,0) IPMT(11.25%/12,51,180, ,0,0) IPMT(11.25%/12,52,180, ,0,0) IPMT(11.25%/12,53,180, ,0,0) IPMT(11.25%/12,54,180, ,0,0) IPMT(11.25%/12,55,180, ,0,0) IPMT(11.25%/12,56,180, ,0,0) IPMT(11.25%/12,57,180, ,0,0) IPMT(11.25%/12,58,180, ,0,0) IPMT(11.25%/12,59,180, ,0,0) IPMT(11.25%/12,60,180, ,0,0) 12) B) 13) A)

4 Equity 12% % (1+12%)^(1/12)-1 Debt 8% % (1+8%)^(1/12)-1 Inflation 6% % (1+6%)^(1/12)-1 Present Lumpsum at age time period Amount Needed Saurabh FV(6%,5,0, ,0) 8410 Anmol FV(6%,11,0, ,0) 3757 Assuming Debt Equity Total Saurabh Anmol ) B) present Exp after 10 years FV(6%,10,0, ,1) PV(12%,10,0, ,1) after 15 years FV(6%,15,0, ,1) Solutions : Vikrant Sahabji 15) B) Present Age Retirement Age Expected Life of Harshada 32 Years 52 years 83 Years Harshada's age on Vikrants Retirement 50 Years Present Expenses Inflation 6% % Balanced 10% % Debt 8% % Inflation linked Debt % % House Hold Exp on Retirement Required Corpus at age 52 years p.m. (1+8%)/(1+6%)-1 PV(12%,15,0, ,1) PMT((1+12%)^(1/12)-1,120, ,0,1) FV(6%,20,0,-18000,1) PV(0.1559%,(83-50)*12,-(57728*0.75),0,1) Amount invested per month in Balanced MF PMT(0.7974%,20*12,0, ,1) *100/ *100/25261

5 16) C) Present Age 32 Years Retirement years Age 52 Expected Life Years of Harshada 83 Harshada's age Years on Vikrants Retirement 50 Present Expenses Inflation 6% % (1+6%)^(1/12)-1 Equity 12% % (1+12%)^(1/12)-1 Debt 8% % (1+8%)^(1/12)-1 Inflation linked Debt % % ( %)/( %)-1 House Hold Exp on Retirement p.m. FV(6%,20,0,-18000,1) Required Corpus at age 52 years PV(0.1559%,(83-50)*12,-(57728*0.75),0,1) Suppose he invests Rs. 100 in each of Equity and Debt MF Schemes At the end of Years Equity Debt Closing Balance If by investing Rs. 100 p.m. he gets Rs after 20 years, thus to get Rs he needs to invest Rs ( /145951)*100 17) A) 50% of Equity MF Market Value today *0.5

6 Equity MF Returns Monthly effective rate Yearly Inflation Amount Needed for Himanshu's Higher education 12.00% p.a % p.m. 6.00% p.a. At the age of 17 years *(1.06)^ /1.12^16 At the age of 18 years * /1.12^17 At the age of 19 years * /1.12^18 At the age of 20 years *1.06^ /1.12^19 At the age of 21 years * /1.12^20 Total PV of educational expenses Current Market Value of investment PV of balance amount to be accumulated in 19 more years SIP for the next 19 years to achieve this corpus 6,068 PMT(0.9489%,19*12, ,0,0) 18) B) Basic *100/ Dearness Allowance *100/ Transport Allowance (49836*0.1)*11 19) A) Quaterly Contribution ) B) Outstanding Balance Contribution during the FY Interest Closing Balance end of FY FY From FY To 1-Jan Mar Apr Mar Apr Mar Apr Mar Apr Mar Apr Mar Apr Mar (1+12%)^(1/12)-1 PV of such amounts if p.a.

7 21) B) 22) A) 23) B) Present Expenses Inflation Rate 6.00% % (1+6%)^(1/12)-1 Debt Returns 8% % (1+8%)^(1/12)-1 Inflation adjusted returns % % ( %)^(1/12)-1 present age of Harshada 30 years expected life of abhilasha 83 years Life insurance needed PV(0.1559%,(83-30)*12,-18000,0,1) 24) C) 25) A) Sd of Portfolio = [(Wa^2*SDa^2)+(Wb^2*SDb^2)+(Wc^2*SDc^2)+(2*Wa*Wb*þab*Sda*SDb)+(2*Wa*Wc*þac*SDa*SDc)+(2*Wb*Wc*þbc*SDb*SDc)]^(1/2) Portfolio Weight (W) Exon (a) 0.4 Futon (b) 0.4 Eltron (c) 0.2 correlation coefficient (þ) þab 0.40 þac 0.60 þbc 0.70 The variance of portfolio is ((0.4)^2 * (6)^2 + (0.4)^2 * (9)^2 +(0.2)^2*(10)^2)+((2*.4*.4*.4*6*9)+((2*.4*.2*.6*6*10))+((2*.4*.2*.7*9*10)) 26) D) 27) C) 28) A) The Standard Deviation of Portfolio Return is 6.74