Solutions - Anamika 1) C) 2) C) RF Rate 7.50% Monthly 0.6045% PV at their starting today No of Years Animesh age amount p.m Anaida age amount Total pm points 1 12 2500 14 2500 5000 112062 538830 2 13 2500 15 2500 5000 112062+(145681/1.075^2)+( 3 14 2500 16 4000 6500 145681 334453/1.075^4)+(89650/1. 4 15 2500 17 4000 6500 075^8) 5 16 4000 18 4000 8000 334453 6 17 4000 19 4000 8000 7 18 4000 20 4000 8000 8 19 4000 21 4000 8000 9 20 4000 0 4000 89650 10 21 4000 0 4000 3) A) Original Investment= 500000 Interest after 3 months= 12500 500000*0.025 TDS on interest @10.30%= 1288 12500*0.103 Balance CF to next 3 months= 511213 500000+12500-1288 Interest after 3 months= 12780 511213*0.025 TDS on interest @10.30%= 1316 12780*0.103 Balance CF to next 3 months= 522676 511213+12780-1316 Interest after 3 months= 13067 522676*0.025 TDS on interest @10.30%= 1346 13067*0.103 Balance CF to next 3 months= 534397 522676+13067-1346 Interest after 3 months= 13360 534397*0.025 TDS on interest @10.30%= 1376 13360*0.103 Total In hand maturity= 546381 each 534397+13360-1376 4) B) No, once policy is assigned under MWP act, assignment can not be withdrawn by policy holder under any condition 5) A) 6) A) FV of investment in NSC FV(EFFECT(8%,2),6,0,- 24015 15000,1) amount invested in MF 14670 after load of 2.25% 15000/(1+0.0225) Required rate to match FPSB India/Public 1
Intrinsic Rate of Growth required by the MF scheme to match NSC returns before Before annual fees & charges of 1.1% 8.56% RATE(6,0,- 14670,24015,0) Intrinsic Rate of Growth required by the MF scheme to give post charges 8.56% 9.77% ((1+0.0856)/(1-0.011))-1 7) A) Cost of Marriage to be covered when Anaida completes 24 year 1000000 Anaida Age completep.m from AkhileshD:E 14 2500 30:70 D=30% E=70% 15 2500 19715 48280 16 4000 FV(((1.09)^(1/12))- FV(((1.14)^(1/12))- 17 4000 1,12*2,-(2500*0.3),0,1) 1,2*12,-(2500*0.7),0,1) 18 4000 19 4000 96850 259181 FV(((1.14)^(1/12))-1,4*12,-(4000*0.7),-48280,1) 20 4000 60:40 FV(((1.09)^(1/12))-1,12*4,-(4000*0.3),-19715,1) D=60% E=40% 21 4000 63088 44141 22 0 FV(((1.09)^(1/12))-1,2*12,-(4000*0.6),0,1) 23 0 24 0 149016 499031 81700 65398 795145 FV(9%,5,0,-96850,1) FV(14%,5,0,-259181,1) FV(9%,3,0,-63088,1) FV(14%,3,0,-44141,1) 149016+499031+81700+653 98 Deficit -204855 795145-1000000 FV(((1.14)^(1/12))-1,2*12,- (4000*0.4),0,1) 8) B) SD of XYZ Ltd 2.20 SD of NIFTY 1.90 Corr Ceoeff(XYZ&NIFTY) 0.90 Beta of (XYZ)? formula Beta= Covariance(A&M)/Variance(M) Covariance(A&M)= SD(A)*SD(M)*Corr Coeff(A&M) Covariance(XYZ&NIFTY)= 3.76 2.2*1.9*0.9 Beta(XYZ)= 1.04 3.76/(E82^2) 9) A) FPSB India/Public 2
10) B) Present Age 42 Retirement Age 60 Years to retirement 18 60-42 expected life 75 Years to live after retirement 15 75-60 present take home per month income needed first month after 39000 66792 FV(6%,18,0,-39000*0.6,0) Risk free rate 7.50% 0.6045% Monthly (1+0.075)^(1/12)-1 Inflation rate 6.00% 0.4868% Monthly (1+0.06)^(1/12)-1 corpus needed 10846318 PV(((1+0.6045%)/(1+0.4868%))-1,12*15,-66792,0,1) Monthly Returns Debt Equity FV(0.72%,(55-42)*12,- FV(1.1%,(55-42)*12,- Monthly Rate 0.72% 1.10% (0.3),0,1) 0.7,0,1) 86.61+289.58 Investments till age 55 0.3 0.7 86.61 289.58 376.18 Investments after 55 to 60 0.6 0.4 392.45 323.81 716.26 1 To get Rs. 10846318 she needs to invest 15143 1*10846318/716.26 11) B) 12) B) U/s 49(2A) of Income Tax Act 13) B) 10.3813% EFFECT(10%,4) 522835 FV(10.3813%,18,-10000,0,1) Alternatively it can be solved Year-1 Year-2 Year-3 36671 (10000*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) Year-4 Year-5 Year-6 85989 ((10000+36671)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) Year-7 Year-8 Year-9 152317 ((10000+85989)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) Year-10 Year-11 Year-12 241521 ((10000+152317)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) Year-13 Year-14 Year-15 361490 ((10000+241521)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) Year-16 Year-17 Year-18 522835 ((10000+361490)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813)) FPSB India/Public 3
14) B) 15) B) 16) B) Present Higher education cost 500000 cost when Anaida is 24 years Age running P.M from Akhilesh D:E Anaida 12 2500 30:70 D=30% E=70% D=60% E=40% 13 2500 FV(((1.09)^(1/12))- FV(((1.14)^(1/12))- 14 2500 1,12*4,-(2500*0.3),0,1) 1,12*4,-(2500*0.7),0,1) 15 2500 43138 111024 16 4000 17 4000 82796 221535 18 4000 60.:40. 19 4000 20 4000 21 4000 Assuming investment of Rs. 100 per month 12 30:70 13 14 15 16 FV(((1.09)^(1/12))- 1,6*12,-30,0,1) FV(((1.14)^(1/12))- 1,6*12,-70,0,1) 17 2839 7703 18 60.:40. 19 20 21 4007+13009+3451+2538 FV(9%,4,0,-2839,1) FV(14%,4,0,-7703,1) FV(((1.09)^(1/12))- 1,12*2,-(4000*0.3),- 43138,1) FV(((1.14)^(1/12))- 1,2*12,-(4000*0.7),- 111024,1) 1552924 116874 374163 138042 101508 730587 500000*1.12^10 FV(9%,4,0,-82796,1) FV(14%,4,0,-221535,1) FV(((1.09)^(1/ FV(((1.14)^(1 116874+374163+ 12))-1,4*12,- /12))-1,4*12,-138042+101508 (4000*0.6),0,1 (4000*0.4),0, Deficit 822337 1552924-730587 ) 1) FV(((1.09)^(1/ 12))-1,4*12,- 60,0,1) 23005 4007 13009 3451 2538 IF by investing Rs. 100 we get= 3575 p.m. Therefore to get Rs. 8,22,337 we need to invest Rs. 100*822337/23005 FV(((1.14)^(1 /12))-1,4*12,- 40,0,1) FPSB India/Public 4
17) A) Solutions - Eklovya Value of share = Company A = Dividend/Required Return-Growth Rate Required Return 15% Growth Rate = Retention ratio X Return on equity (ROE) Return on Equity of Company - A 18% Retention ratio = 1-dividend payout ratio = (1-dividend payout ratio) x ROE Growth rate 0.144 (1-0.2)*0.18 Value of share 133 0.8/(15%-0.144) 18) A) Eklovya will get Rs. 35,000 as deduction Mr. Eklovya will get deduction for his policy Mr. Eklovya will get deduction for his father policy paid by him since he is a senior citizen Rs. 15,000 Rs. 20,000 Total Deduction Available to Mr. Eklovyas is Rs.15,000 + Rs. 20,000 = Rs.35,000 19) A) Tax Payable 4944 15 Interest @ 1% 445 4944*1%*9 7.50% per month for 9 1-Apr-04 5000000 months 1 1-May-04 4984899 Total Tax payable 5389 4944+445 2 1-Jun-04 4969704 Penalty of Belated Return 5000 3 1-Jul-04 4954414 20) A) 4 1-Aug-04 4939029 Intraday Trading 1000000 5 1-Sep-04 4923547 This income will be added to his total income and will be taxed at 339900 1000000*33.99% 6 1-Oct-04 4907969 7 1-Nov-04 4892293 Net income 660100 1000000-339900 8 1-Dec-04 4876519 9 1-Jan-05 4860647 Loan Outstanding as on 1st April 2009 3904796 10 1-Feb-05 4844675 Remaining Balance 3244696 3904796-660100 11 1-Mar-05 4828604 12 1-Apr-05 4812432 7 13 1-May-05 4796159 7.5% EMI INT PRN 14 1-Jun-05 4779784 1-Apr-09 3244696 15 1-Jul-05 4763307 1 1-May-09 3,215,207 49,768 20,279 29,488.69 16 1-Aug-05 4746728 FPSB India/Public 5
2 1-Jun-09 3,185,534 49,768 20,095 29,673.00 17 1-Sep-05 4730044 3 1-Jul-09 3,155,676 49,768 19,910 29,858.45 18 1-Oct-05 4713256 4 1-Aug-09 3,125,631 49,768 19,723 30,045.07 19 1-Nov-05 4696363 5 1-Sep-09 3,095,398 49,768 19,535 30,232.85 20 1-Dec-05 4679365 6 1-Oct-09 3,064,976 49,768 19,346 30,421.81 21 1-Jan-06 4662260 7 1-Nov-09 3,034,364 49,768 19,156 30,611.94 22 1-Feb-06 4645049 8 1-Dec-09 3,003,561 49,768 18,965 30,803.27 23 1-Mar-06 4627730 9 1-Jan-10 2,972,565 49,768 18,772 30,995.79 24 1-Apr-06 4610303 10 1-Feb-10 2,941,376 49,768 18,579 31,189.51 25 1-May-06 4592766 11 1-Mar-10 2,909,991 49,768 18,384 31,384.44 26 1-Jun-06 4575120 12 1-Apr-10 2,878,411 49,768 18,187 31,580.60 27 1-Jul-06 4557364 13 1-May-10 2,846,633 49,768 17,990 31,777.98 28 1-Aug-06 4539497 14 1-Jun-10 2,814,656 49,768 17,791 31,976.59 29 1-Sep-06 4521519 15 1-Jul-10 2,782,480 49,768 17,592 32,176.44 30 1-Oct-06 4503427 16 1-Aug-10 2,750,102 49,768 17,390 32,377.54 31 1-Nov-06 4485223 17 1-Sep-10 2,717,522 49,768 17,188 32,579.90 32 1-Dec-06 4466905 18 1-Oct-10 2,684,739 49,768 16,985 32,783.53 33 1-Jan-07 4448473 19 1-Nov-10 2,651,750 49,768 16,780 32,988.43 34 1-Feb-07 4429925 20 1-Dec-10 2,618,556 49,768 16,573 33,194.60 35 1-Mar-07 4411262 21 1-Jan-11 2,585,154 49,768 16,366 33,402.07 36 1-Apr-07 4392481 22 1-Feb-11 2,551,543 49,768 16,157 33,610.83 37 1-May-07 4373584 23 1-Mar-11 2,517,722 49,768 15,947 33,820.90 38 1-Jun-07 4354568 24 1-Apr-11 2,483,689 49,768 15,736 34,032.28 39 1-Jul-07 4335433 25 1-May-11 2,449,445 49,768 15,523 34,244.98 40 1-Aug-07 4316179 26 1-Jun-11 2,414,985 49,768 15,309 34,459.01 41 1-Sep-07 4296805 27 1-Jul-11 2,380,311 49,768 15,094 34,674.38 42 1-Oct-07 4277309 28 1-Aug-11 2,345,420 49,768 14,877 34,891.10 43 1-Nov-07 4257692 29 1-Sep-11 2,310,311 49,768 14,659 35,109.17 44 1-Dec-07 4237952 30 1-Oct-11 2,274,982 49,768 14,439 35,328.60 45 1-Jan-08 4218088 31 1-Nov-11 2,239,433 49,768 14,219 35,549.40 46 1-Feb-08 4198101 32 1-Dec-11 2,203,661 49,768 13,996 35,771.59 47 1-Mar-08 4177988 33 1-Jan-12 2,167,666 49,768 13,773 35,995.16 48 1-Apr-08 4157750 34 1-Feb-12 2,131,446 49,768 13,548 36,220.13 49 1-May-08 4137385 35 1-Mar-12 2,094,999 49,768 13,322 36,446.51 50 1-Jun-08 4116893 36 1-Apr-12 2,058,325 49,768 13,094 36,674.30 51 1-Jul-08 4096273 37 1-May-12 2,021,422 49,768 12,865 36,903.51 52 1-Aug-08 4075524 38 1-Jun-12 1,984,287 49,768 12,634 37,134.16 53 1-Sep-08 4054646 39 1-Jul-12 1,946,921 49,768 12,402 37,366.25 54 1-Oct-08 4033637 40 1-Aug-12 1,909,321 49,768 12,168 37,599.78 55 1-Nov-08 4012496 41 1-Sep-12 1,871,487 49,768 11,933 37,834.78 56 1-Dec-08 3991224 42 1-Oct-12 1,833,415 49,768 11,697 38,071.25 57 1-Jan-09 3969818 43 1-Nov-12 1,795,106 49,768 11,459 38,309.20 58 1-Feb-09 3948279 44 1-Dec-12 1,756,558 49,768 11,219 38,548.63 59 1-Mar-09 3926605 45 1-Jan-13 1,717,768 49,768 10,978 38,789.56 60 1-Apr-09 3904796 46 1-Feb-13 1,678,736 49,768 10,736 39,031.99 61 1-May-09 3882850 47 1-Mar-13 1,639,460 49,768 10,492 39,275.94 62 1-Jun-09 3860767 FPSB India/Public 6
48 1-Apr-13 1,599,939 49,768 10,247 39,521.42 63 1-Jul-09 3838547 49 1-May-13 1,560,170 49,768 10,000 39,768.43 64 1-Aug-09 3816187 50 1-Jun-13 1,520,153 49,768 9,751 40,016.98 65 1-Sep-09 3793687 51 1-Jul-13 1,479,886 49,768 9,501 40,267.08 66 1-Oct-09 3771047 52 1-Aug-13 1,439,367 49,768 9,249 40,518.75 67 1-Nov-09 3748266 53 1-Sep-13 1,398,595 49,768 8,996 40,772.00 68 1-Dec-09 3725342 54 1-Oct-13 1,357,569 49,768 8,741 41,026.82 69 1-Jan-10 3702275 55 1-Nov-13 1,316,285 49,768 8,485 41,283.24 70 1-Feb-10 3679063 56 1-Dec-13 1,274,744 49,768 8,227 41,541.26 71 1-Mar-10 3655707 57 1-Jan-14 1,232,943 49,768 7,967 41,800.89 72 1-Apr-10 3632204 58 1-Feb-14 1,190,881 49,768 7,706 42,062.15 73 1-May-10 3608555 59 1-Mar-14 1,148,556 49,768 7,443 42,325.04 74 1-Jun-10 3584758 60 1-Apr-14 1,105,967 49,768 7,178 42,589.57 75 1-Jul-10 3560812 61 1-May-14 1,063,111 49,768 6,912 42,855.75 76 1-Aug-10 3536716 62 1-Jun-14 1,019,987 49,768 6,644 43,123.60 77 1-Sep-10 3512470 63 1-Jul-14 976,594 49,768 6,375 43,393.12 78 1-Oct-10 3488073 64 1-Aug-14 932,930 49,768 6,104 43,664.33 79 1-Nov-10 3463522 65 1-Sep-14 888,992 49,768 5,831 43,937.23 80 1-Dec-10 3438819 66 1-Oct-14 844,781 49,768 5,556 44,211.84 81 1-Jan-11 3413961 67 1-Nov-14 800,292 49,768 5,280 44,488.16 82 1-Feb-11 3388947 68 1-Dec-14 755,526 49,768 5,002 44,766.21 83 1-Mar-11 3363778 69 1-Jan-15 710,480 49,768 4,722 45,046.00 84 1-Apr-11 3338451 70 1-Feb-15 665,153 49,768 4,441 45,327.54 85 1-May-11 3312965 71 1-Mar-15 619,542 49,768 4,157 45,610.84 86 1-Jun-11 3287321 72 1-Apr-15 573,646 49,768 3,872 45,895.91 87 1-Jul-11 3261516 73 1-May-15 527,463 49,768 3,585 46,182.76 88 1-Aug-11 3235550 74 1-Jun-15 480,992 49,768 3,297 46,471.40 89 1-Sep-11 3209421 75 1-Jul-15 434,230 49,768 3,006 46,761.84 90 1-Oct-11 3183130 76 1-Aug-15 387,176 49,768 2,714 47,054.10 91 1-Nov-11 3156674 77 1-Sep-15 339,828 49,768 2,420 47,348.19 92 1-Dec-11 3130052 78 1-Oct-15 292,184 49,768 2,124 47,644.12 93 1-Jan-12 3103264 79 1-Nov-15 244,242 49,768 1,826 47,941.90 94 1-Feb-12 3076309 80 1-Dec-15 196,000 49,768 1,527 48,241.53 95 1-Mar-12 3049186 81 1-Jan-16 147,457 49,768 1,225 48,543.04 96 1-Apr-12 3021892 82 1-Feb-16 98,611 49,768 922 48,846.44 97 1-May-12 2994429 83 1-Mar-16 49,459 49,768 616 49,151.73 98 1-Jun-12 2966793 84 1-Apr-16 0 49,768 309 49,458.92 99 1-Jul-12 2938985 Bal. Interest payable in the new schedule 935,820 100 1-Aug-12 2911003 Bal. Interest payable in the old schedule 1,657,278 101 1-Sep-12 2882846 Saving in interest 721459 1657278-935820 102 1-Oct-12 2854513 21) A) 14-Apr-08-50000 103 1-Nov-12 2826003 17-Jun-08-50000 104 1-Dec-12 2797315 18-Sep-08-50000 105 1-Jan-13 2768448 8-Jan-09-140000 1-Apr-09 300000 Actual Rate of Return 6.91% XIRR Post Tax Return = Return *(1-Tax Rate) 4.56% 6.91*(1-0.3399) FPSB India/Public 7
106 1-Feb-13 2739400 22) B) 107 1-Mar-13 2710171 108 1-Apr-13 2680759 23) C) 109 1-May-13 2651163 Eklovya's post-tax salary in 2008-09 780000 65000*12 110 1-Jun-13 2621382 Post-tax salary in the first year of investment 819000 780000*1.05 111 1-Jul-13 2591415 Salary Saving Investment 112 1-Aug-13 2561261 01.04.2009 32 as at end of the year 113 1-Sep-13 2530918 01.04.2010 33 819000 556212 262788 26279 26,279 114 1-Oct-13 2500386 01.04.2011 34 859950 556212 303738 30374 58,624 115 1-Nov-13 2469662 01.04.2012 35 902948 556212 346736 34674 97,694 116 1-Dec-13 2438747 01.04.2013 36 948095 556212 391883 39188 144,209 117 1-Jan-14 2407639 01.04.2014 37 995500 556212 439288 43929 198,954 118 1-Feb-14 2376336 01.04.2015 38 1045275 556212 489063 48906 262,781 119 1-Mar-14 2344837 01.04.2016 39 1097538 556212 541326 54133 336,623 120 1-Apr-14 2313142 01.04.2017 40 1152415 556212 596203 59620 421,490 121 1-May-14 2281248 01.04.2018 41 1210036 556212 653824 65382 518,484 122 1-Jun-14 2249156 01.04.2019 42 1270538 556212 714326 71433 628,803 123 1-Jul-14 2216862 01.04.2020 43 1334065 0 1334065 133406 809,369 124 1-Aug-14 2184367 01.04.2021 44 1400768 0 1400768 140077 1,010,149 125 1-Sep-14 2151669 01.04.2022 45 1470806 0 1470806 147081 1,232,991 126 1-Oct-14 2118766 01.04.2023 46 1544347 0 1544347 154435 1,479,900 127 1-Nov-14 2085658 01.04.2024 47 1621564 0 1621564 162156 1,753,048 128 1-Dec-14 2052342 01.04.2025 48 1702642 0 1702642 170264 2,054,791 129 1-Jan-15 2018819 01.04.2026 49 1787774 0 1787774 178777 2,387,678 130 1-Feb-15 1985086 01.04.2027 50 1877163 0 1877163 187716 2,754,470 131 1-Mar-15 1951142 01.04.2028 51 1971021 0 1971021 197102 3,158,158 132 1-Apr-15 1916986 01.04.2029 52 2069572 0 2069572 206957 3,601,977 133 1-May-15 1882617 01.04.2030 53 2173051 0 2173051 217305 4,089,430 134 1-Jun-15 1848032 01.04.2031 54 2281703 0 2281703 228170 4,624,307 135 1-Jul-15 1813232 01.04.2032 55 2395789 0 2395789 239579 5,210,709 136 1-Aug-15 1778214 01.04.2033 56 2515578 0 2515578 251558 5,853,070 137 1-Sep-15 1742977 01.04.2034 57 2641357 0 2641357 264136 6,556,186 138 1-Oct-15 1707520 01.04.2035 58 2773425 0 2773425 277342 7,325,243 139 1-Nov-15 1671842 01.04.2036 59 2912096 0 2912096 291210 8,165,846 140 1-Dec-15 1635940 01.04.2037 60 3057701 0 3057701 305770 9,084,054 141 1-Jan-16 1599814 142 1-Feb-16 1563462 Value of funds at 60 21,205,571 FV(7.5%,28,0,-1600000,0)+90,84,054 143 1-Mar-16 1526883 Inflation adusted real rate of return 144 1-Apr-16 1490076 per annum 0.014285714 (1.065/1.05)-1 145 1-May-16 1453038 per month 0.001182752 (1+0.0142857)^(1/12)-1 146 1-Jun-16 1415769 147 1-Jul-16 1378267 PV at age 60 of monthly pension for 15 years 20,279,430 PV(0.00118275,180,-125000,0,1) 148 1-Aug-16 1340530 Excess PV at age 60 after meeting pension per his expected life 926,141 2,12,05,571-2,02,79,430 149 1-Sep-16 1302558 Future Value of this exceess PV after 15 years @ 6.5% p.a. 2,381,887 9,26,141*(1.065)^15 150 1-Oct-16 1264348 151 1-Nov-16 1225900 FPSB India/Public 8
152 1-Dec-16 1187211 24) A) 153 1-Jan-17 1148281 154 1-Feb-17 1109107 25) A) Rs. 8,00,000/- 155 1-Mar-17 1069688 Principle of Under Insurance does not apply in the instant case. 156 1-Apr-17 1030023 157 1-May-17 990110 26) B) 158 1-Jun-17 949948 In accordance with the facts of case, the gift to Mr. Eklovya is valid because there was no undue influence, he was acting in good faith and her act of adding codicil to the will was with her free consent. 159 1-Jul-17 909534 160 1-Aug-17 868868 161 1-Sep-17 827948 27) A) Net profit (loss) on the contract 162 1-Oct-17 786772 Eklovya = ( )(3400-3200)* 50-10000 163 1-Nov-17 745339 Dinesh = ( ) 100 x 50-5000 164 1-Dec-17 703647 165 1-Jan-18 661694 28) A) 166 1-Feb-18 619479 Eklovya 167 1-Mar-18 577000 Contribution 15000 168 1-Apr-18 534255 169 1-May-18 491244 Year Date Out Bal Contribution Interest on fresh Interest on Closing Bal 170 1-Jun-18 447964 funds April balance end of March 171 1-Jul-18 404413 1-Apr-09 535697 15000 1200 42856 610353 172 1-Aug-18 360590 1-Oct-09 15000 600 173 1-Sep-18 316493 1-Apr-10 610353 15000 1200 48828 690981 174 1-Oct-18 272120 1-Oct-10 15000 600 175 1-Nov-18 227470 1-Apr-11 690981 15000 1200 55278 778059 176 1-Dec-18 182541 1-Oct-11 15000 600 177 1-Jan-19 137332 1-Apr-12 778059 15000 1200 62245 872104 178 1-Feb-19 91839 1-Oct-12 15000 600 179 1-Mar-19 46063 1-Apr-13 872104 15000 1200 69768 973673 180 1-Apr-19 0 1-Oct-13 15000 600 1 1-Apr-14 973673 15000 1200 77894 1083366 1-Oct-14 15000 600 2 1-Apr-15 1083366 15000 1200 86669 1201836 1-Oct-15 15000 600 3 1-Apr-16 1201836 15000 1200 96147 1329783 1-Oct-16 15000 600 4 1-Apr-17 1329783 15000 1200 106383 1467965 1-Oct-17 15000 600 5 1-Apr-18 1467965 Shikha's Salary 15000 Year Date Out Bal Contribution Interest on fresh Interest on Closing Bal funds April balance end of March 1-Apr-09 434068 15000 1200 34725 500593 FPSB India/Public 9
1-Oct-09 15000 600 1-Apr-10 500593 15000 1200 40047 572441 1-Oct-10 15000 600 1-Apr-11 572441 15000 1200 45795 650036 1-Oct-11 15000 600 1-Apr-12 650036 15000 1200 52003 733839 1-Oct-12 15000 600 1-Apr-13 733839 15000 1200 58707 824346 1-Oct-13 15000 600 1-Apr-14 824346 15000 1200 65948 922094 1-Oct-14 15000 600 1-Apr-15 922094 15000 1200 73768 1027661 1-Oct-15 15000 600 1-Apr-16 1027661 15000 1200 82213 1141674 1-Oct-16 15000 600 1 1-Apr-17 1141674 15000 1200 91334 1264808 1-Oct-17 15000 600 2 1-Apr-18 1264808 15000 1200 101185 1397793 1-Oct-18 15000 600 3 1-Apr-19 1397793 15000 1200 111823 1541416 1-Oct-19 15000 600 4 1-Apr-20 1541416 15000 1200 123313 1696530 1-Oct-20 15000 600 5 1-Apr-21 1696530 Simran will turn 24 in 2028 10 years after maturity of extended PPF A/c. of Eklovya Nishita will turn 24 in 2030 9 years after maturity of extended PPF A/c. of Shikha Amount Required for Simran's Marriage 3000000 Amount Required for Nishta's Marriage 3250000 RATE(10,0,-1467965, Rate of Return Eklovya will invest to meet his goal 7.41% 3000000, 1) Rate of Return Shikha will invest to meet his goal 7.49% Therefore approximate rate of return required to meet the target amount for the marriage of each daughter is 29) C) Amount required for Simran at age 18 (curr. Prices) 1000000 No. of years 13 18-5 Future value of sum required @ 7% escalation p.a. 2409845 1000000*(1.07)^13 No. of months 156 13*12 Rate of return per annum 0.12 Rate of return per month effective 0.009488793 (1+0.12)^(1/12)-1 Amount required per month 6,735 PMT(0.009488793,156,0,2409845,1) Amount required for Nishita at age 21 (curr. Prices) 1500000 No. of years 18 21-3 Future value of sum required @ 7% escalation p.a. 5069898 1500000*(1.07)^18 7.50% RATE(9,0,-1696530, 3250000, 1) FPSB India/Public 10
No. of months 216 18*12 Rate of return per annum 0.12 Rate of return per month effective 0.009488793 (1+0.12)^(1/12)-1 Amount required per month 7,123 PMT(0.009488793,216,0,5069898,1) 30) D) 31) B) Expected Return of the Portfolio 12.00% 0.4*0.15+0.3*0.08+0.3*0.12 Post Tax Return = Expected Return * (1 - Tax Rate) 7.92% 0.12*(1-0.3399) Existing Housing Loan Repayment schedule 15 7.50% EMI INT Principal 1-Apr-04 5000000 15101 1 1-May-04 4984899 46351 31250 15195 2 1-Jun-04 4969704 46351 31156 15290 3 1-Jul-04 4954414 46351 31061 15386 4 1-Aug-04 4939029 46351 30965 15482 5 1-Sep-04 4923547 46351 30869 15578 6 1-Oct-04 4907969 46351 30772 15676 7 1-Nov-04 4892293 46351 30675 15774 8 1-Dec-04 4876519 46351 30577 15872 9 1-Jan-05 4860647 46351 30478 15972 10 1-Feb-05 4844675 46351 30379 16071 11 1-Mar-05 4828604 46351 30279 16172 12 1-Apr-05 4812432 46351 30179 16273 13 1-May-05 4796159 46351 30078 16375 14 1-Jun-05 4779784 46351 29976 16477 15 1-Jul-05 4763307 46351 29874 16580 16 1-Aug-05 4746728 46351 29771 16684 17 1-Sep-05 4730044 46351 29667 16788 18 1-Oct-05 4713256 46351 29563 16893 19 1-Nov-05 4696363 46351 29458 16998 20 1-Dec-05 4679365 46351 29352 17105 21 1-Jan-06 4662260 46351 29246 17211 22 1-Feb-06 4645049 46351 29139 17319 23 1-Mar-06 4627730 46351 29032 17427 24 1-Apr-06 4610303 46351 28923 17536 25 1-May-06 4592766 46351 28814 17646 26 1-Jun-06 4575120 46351 28705 17756 27 1-Jul-06 4557364 46351 28595 17867 28 1-Aug-06 4539497 46351 28484 17979 29 1-Sep-06 4521519 46351 28372 18091 FPSB India/Public 11
30 1-Oct-06 4503427 46351 28259 18204 31 1-Nov-06 4485223 46351 28146 18318 32 1-Dec-06 4466905 46351 28033 18432 33 1-Jan-07 4448473 46351 27918 18548 34 1-Feb-07 4429925 46351 27803 18664 35 1-Mar-07 4411262 46351 27687 18780 36 1-Apr-07 4392481 46351 27570 18898 37 1-May-07 4373584 46351 27453 19016 38 1-Jun-07 4354568 46351 27335 19135 39 1-Jul-07 4335433 46351 27216 19254 40 1-Aug-07 4316179 46351 27096 19374 41 1-Sep-07 4296805 46351 26976 19496 42 1-Oct-07 4277309 46351 26855 19617 43 1-Nov-07 4257692 46351 26733 19740 44 1-Dec-07 4237952 46351 26611 19863 45 1-Jan-08 4218088 46351 26487 19988 46 1-Feb-08 4198101 46351 26363 20112 47 1-Mar-08 4177988 46351 26238 20238 48 1-Apr-08 4157750 46351 26112 20365 49 1-May-08 4137385 46351 25986 20492 50 1-Jun-08 4116893 46351 25859 20620 51 1-Jul-08 4096273 46351 25731 20749 52 1-Aug-08 4075524 46351 25602 20879 53 1-Sep-08 4054646 46351 25472 21009 54 1-Oct-08 4033637 46351 25342 21140 55 1-Nov-08 4012496 46351 25210 21273 56 1-Dec-08 3991224 46351 25078 21405 57 1-Jan-09 3969818 46351 24945 21539 58 1-Feb-09 3948279 46351 24811 21674 59 1-Mar-09 3926605 46351 24677 21809 60 1-Apr-09 3904796 46351 24541 21946 61 1-May-09 3882850 46351 24405 22083 62 1-Jun-09 3860767 46351 24268 22221 63 1-Jul-09 3838547 46351 24130 22360 64 1-Aug-09 3816187 46351 23991 22499 65 1-Sep-09 3793687 46351 23851 22640 66 1-Oct-09 3771047 46351 23711 22782 67 1-Nov-09 3748266 46351 23569 22924 68 1-Dec-09 3725342 46351 23427 23067 69 1-Jan-10 3702275 46351 23283 23211 70 1-Feb-10 3679063 46351 23139 23356 71 1-Mar-10 3655707 46351 22994 23502 72 1-Apr-10 3632204 46351 22848 23649 73 1-May-10 3608555 46351 22701 23797 74 1-Jun-10 3584758 46351 22553 23946 75 1-Jul-10 3560812 46351 22405 24096 FPSB India/Public 12
76 1-Aug-10 3536716 46351 22255 24246 77 1-Sep-10 3512470 46351 22104 24398 78 1-Oct-10 3488073 46351 21953 24550 79 1-Nov-10 3463522 46351 21800 24704 80 1-Dec-10 3438819 46351 21647 24858 81 1-Jan-11 3413961 46351 21493 25013 82 1-Feb-11 3388947 46351 21337 25170 83 1-Mar-11 3363778 46351 21181 25327 84 1-Apr-11 3338451 46351 21024 25485 85 1-May-11 3312965 46351 20865 25645 86 1-Jun-11 3287321 46351 20706 25805 87 1-Jul-11 3261516 46351 20546 25966 88 1-Aug-11 3235550 46351 20384 26128 89 1-Sep-11 3209421 46351 20222 26292 90 1-Oct-11 3183130 46351 20059 26456 91 1-Nov-11 3156674 46351 19895 26621 92 1-Dec-11 3130052 46351 19729 26788 93 1-Jan-12 3103264 46351 19563 26955 94 1-Feb-12 3076309 46351 19395 27124 95 1-Mar-12 3049186 46351 19227 27293 96 1-Apr-12 3021892 46351 19057 27464 97 1-May-12 2994429 46351 18887 27635 98 1-Jun-12 2966793 46351 18715 27808 99 1-Jul-12 2938985 46351 18542 27982 100 1-Aug-12 2911003 46351 18369 28157 101 1-Sep-12 2882846 46351 18194 28333 102 1-Oct-12 2854513 46351 18018 28510 103 1-Nov-12 2826003 46351 17841 28688 104 1-Dec-12 2797315 46351 17663 28867 105 1-Jan-13 2768448 46351 17483 29048 106 1-Feb-13 2739400 46351 17303 29229 107 1-Mar-13 2710171 46351 17121 29412 108 1-Apr-13 2680759 46351 16939 29596 109 1-May-13 2651163 46351 16755 29781 110 1-Jun-13 2621382 46351 16570 29967 111 1-Jul-13 2591415 46351 16384 30154 112 1-Aug-13 2561261 46351 16196 30343 113 1-Sep-13 2530918 46351 16008 30532 114 1-Oct-13 2500386 46351 15818 30723 115 1-Nov-13 2469662 46351 15627 30915 116 1-Dec-13 2438747 46351 15435 31108 117 1-Jan-14 2407639 46351 15242 31303 118 1-Feb-14 2376336 46351 15048 31499 119 1-Mar-14 2344837 46351 14852 31695 120 1-Apr-14 2313142 46351 14655 31893 121 1-May-14 2281248 46351 14457 32093 FPSB India/Public 13
122 1-Jun-14 2249156 46351 14258 32293 123 1-Jul-14 2216862 46351 14057 32495 124 1-Aug-14 2184367 46351 13855 32698 125 1-Sep-14 2151669 46351 13652 32903 126 1-Oct-14 2118766 46351 13448 33108 127 1-Nov-14 2085658 46351 13242 33315 128 1-Dec-14 2052342 46351 13035 33523 129 1-Jan-15 2018819 46351 12827 33733 130 1-Feb-15 1985086 46351 12618 33944 131 1-Mar-15 1951142 46351 12407 34156 132 1-Apr-15 1916986 46351 12195 34369 133 1-May-15 1882617 46351 11981 34584 134 1-Jun-15 1848032 46351 11766 34800 135 1-Jul-15 1813232 46351 11550 35018 136 1-Aug-15 1778214 46351 11333 35237 137 1-Sep-15 1742977 46351 11114 35457 138 1-Oct-15 1707520 46351 10894 35679 139 1-Nov-15 1671842 46351 10672 35902 140 1-Dec-15 1635940 46351 10449 36126 141 1-Jan-16 1599814 46351 10225 36352 142 1-Feb-16 1563462 46351 9999 36579 143 1-Mar-16 1526883 46351 9772 36808 144 1-Apr-16 1490076 46351 9543 37038 145 1-May-16 1453038 46351 9313 37269 146 1-Jun-16 1415769 46351 9081 37502 147 1-Jul-16 1378267 46351 8849 37736 148 1-Aug-16 1340530 46351 8614 37972 149 1-Sep-16 1302558 46351 8378 38210 150 1-Oct-16 1264348 46351 8141 38448 151 1-Nov-16 1225900 46351 7902 38689 152 1-Dec-16 1187211 46351 7662 38931 153 1-Jan-17 1148281 46351 7420 39174 154 1-Feb-17 1109107 46351 7177 39419 155 1-Mar-17 1069688 46351 6932 39665 156 1-Apr-17 1030023 46351 6686 39913 157 1-May-17 990110 46351 6438 40162 158 1-Jun-17 949948 46351 6188 40413 159 1-Jul-17 909534 46351 5937 40666 160 1-Aug-17 868868 46351 5685 40920 161 1-Sep-17 827948 46351 5430 41176 162 1-Oct-17 786772 46351 5175 41433 163 1-Nov-17 745339 46351 4917 41692 164 1-Dec-17 703647 46351 4658 41953 165 1-Jan-18 661694 46351 4398 42215 166 1-Feb-18 619479 46351 4136 42479 167 1-Mar-18 577000 46351 3872 42744 FPSB India/Public 14
168 1-Apr-18 534255 46351 3606 43012 169 1-May-18 491244 46351 3339 43280 170 1-Jun-18 447964 46351 3070 43551 171 1-Jul-18 404413 46351 2800 43823 172 1-Aug-18 360590 46351 2528 44097 173 1-Sep-18 316493 46351 2254 44373 174 1-Oct-18 272120 46351 1978 44650 175 1-Nov-18 227470 46351 1701 44929 176 1-Dec-18 182541 46351 1422 45210 177 1-Jan-19 137332 46351 1141 45492 178 1-Feb-19 91839 46351 858 45777 179 1-Mar-19 46063 46351 574 46063 180 1-Apr-19 0 46351 288 FPSB India/Public 15