1) B) Sameer Soopari - Solutions 2) D) Total Purchase Price= 1000000 lakh 75% Loan @12%(monthly compounding)= 750000 lakh Margin Money= 250000 lakh After 6 months sell price= 1100000 lakh After 6 months loan repayment=(750000*1.01^6)= 796140 750000*1.01^6 Total Gain= 303860 1100000-796140 3) A) PV= 250000 FV= 303860 N= 6 months R= 3.3052% monthly RATE(6,0,-250000,303860,0) Annual Rate= 47.73% Annual ((1+3.3052%)^(12)-1) Annual Premium= -9832 Term= 15 Years SA= 1 lakh Term Premium= 550 Rs. 5168 550 5718 Annual Effective Investment= -9282 550-9832 Final Maturity=(40000+10000+(3500*15)= 102500 5168 550 5718 5168 550 5718 5168 550 5718 102500 IRR= 2.99% 4) B) 5) B) Single premium= 180000 Annual Premium= 12850 Term= 20 years Discount rate= 6% PV @6% for 20 years in begin mode= So Option 2 is suitable 156232 PV(6%,20,-12850,0,1)
6) A) The effective rate for a three-year block starting from next year is, r = Such three-year block payments are in perpetuity Hence, PV of Rs. 2,00,000 to be received in perptuity every three years starting from next year, i.e. Perpetuity Due 29.50% (1.09)^3-1) 877899 200000*(1+r)/r Vallue of this Perpetuity Due in today's terms, i.e. a year in advance @ 9% p.a. 805412 877899/(1+0.09) 7) A) Cash in hand with sameer & Urvi= (250000+100000) 350000 Their Current Monthly Expense= 27220 Annual expense/12= (22500/12)= 1875 Annual Insurance/12=(116375/12)= 9698 Home Loan EMI= 18473 Total 57266 6 Months' Reserv=57266*6= 343596 Surplus= 6404 350000-343596 8) A) On Road Price= 350000 Addition due to expenses over Ex Showroom Price= 7.50% So Ex showroom Price 325581 350000/1.075 Loan 75% So Loan Amount= 244186 325581*75% Rate of Interest=11.50% 11.50% per year Term= 3 years EMI= 8,052 PMT(11.5%/12,3*12,-244186,0,) Total Repeyment=(8052*36)= 289872 Original Loan= 244186 Total Interest Paid= 45686 289872-244186 9) A) KVP doubles in 8 years & 7 months= 103 months Last investment upto the maturity of 1st investment, so total investments= 102 So effectively Sameer will get 92 maturities of Rs. 40000 every month and invest the same @0.75% monthly interest at begin of every month So value of balanced fund at the time of last KVP maturity = 6181015 FV(0.75%,102,-40000,0,1)+40000 PV= 0 Pmt= -40000 N= 102 R= 0.75 Mode= Begin
10) D) Loan amount 2148000 Purchase Price of the house= 3500000 1 4598 PPMT(7.75%/12,1,18*12,-2148000,0) Sell Price= 5000000 2 4628 PPMT(7.75%/12,2,18*12,-2148000,0) Short Term Capital Gain= 1500000 3 4658 PPMT(7.75%/12,3,18*12,-2148000,0) Deduction availed u/s 80C in AY 08-09= 52246 4 4688 PPMT(7.75%/12,4,18*12,-2148000,0) 5 4718 PPMT(7.75%/12,5,18*12,-2148000,0) So Total Amount to be included in current year's income= 1552246 1500000+52246 6 4749 PPMT(7.75%/12,6,18*12,-2148000,0) 7 4779 PPMT(7.75%/12,7,18*12,-2148000,0) 8 4810 PPMT(7.75%/12,8,18*12,-2148000,0) 9 4841 PPMT(7.75%/12,9,18*12,-2148000,0) 10 4873 PPMT(7.75%/12,10,18*12,-2148000,0) 11 4904 PPMT(7.75%/12,11,18*12,-2148000,0) Deduction availed u/s 80C for FY 2007-08 Total 52246 11) D) 12) A) 13) B) SIP 10000 Returns effective/month Weight 1st Year End 2nd Year End 3rd Year End Equity 13% 0.010236844 0.62 79541 168538 267325 Debt 9% 0.007207323 0.22 27670 58132 91944 RF 6% 0.004867551 0.16 19818 41363 65277 Total 1 127030 268033 424546 0.87320% RATE(36,-10000,0,424546,1) 11.00%((1+0.8732%)^12)-1 14) A) Amount of rent pm today 12000 15000*0.8 Amount of rent pm 10 years hence 21490.17 12000*(1.06^10) Hence the EMI will be = 21490.17 Principal for which the above EMI will be paid 1790597 PV(1%,12*15,-21490.17,0,0) The Principal of loan will be 80% of the value of Property Value of Property = Rs. 2238246 1790597/0.8 15) A) Today 21/02/2009 4.5+21/30 25 yrs. 21/02/2034 5.20 18.43333 ULIP - 2 Withdrawal 15/09/2015 268054.1367 FV(8%,10,-17133,0,1) 18 9.57 15.79722 18+5.2/12 ULIP - 1 Withdrawal 5/5/2018 391137.1866 FV(8%,10,-25000,0,1) 15 8+47/30 15+9.57/12 Years to corpus after 25 years for ULIP-2 from withdrawal = 18 years, 5 months, 6 days 18.43 18+5/12+6/(30*12) Years to corpus after 25 years for ULIP-1 from withdrawal = 15 years, 9 months, 16 days 15.79 15+9/12+16/(30*12) Value of ULIP - 2 amount till corpus after 25 years equity 0.13 1275278.86 (268054.1367/2)*(1+0.13)^18.43333 debt 0.09 656277.67 (268054.1367/2)*(1+0.09)^18.43333 Value of ULIP - 1 amount till corpus after 25 years 1347856 (391137.1866/2)*(1+0.13)^15.79722 762834 (391137.1866/2)*(1+0.09)^15.79722 Total value after 25 years 4042247 sum(1275279+656278+1347856+762834) 16) B)
17) D) 18) A) 19) A) Suneel Gupta - Solutions 20) A) Load charged by the Scheme = 2.25% Face Value of units Rs. 10.00 Purchase price per unit Rs. 10.225 10*(1+2.25%) Investment Amount Rs. 50,000 No. of unit allotted = 4,889.976 50000/10.225 21) B) PV= -50000 N= 10 Pmt= 5500 R= 1.77% per month 23.43% per annum 22) C) 23) A) Annual Contribution= 50263 Term Insurance Charges= 27000 Investment Portion= 23263 p.a. 50263-27000 Minimum Guarantee= 741741 Maximum Projection @10%= 1460179 So IRRs based on company projections= Minimum= 4.26% RATE(20,-23263,0,741741,1) Maximum= 9.97% RATE(20,-23263,0,1460179,1) 24) A) 25) A) 26) A) Pension Required= Rs. 25000 per month Time= 15 Years Rate of Return= 8.50% p.a.effective equivalent to 0.68214934% p.m.effective Rate of Inflation= 5% p.a.effective equivalent to 0.40741238% p.m.effective No. of years pension is required 15 years = 180 months (0.68214934%-0.40741238%)/(1+0.40741238%) Inflation Adjusted Rate of Return= 0.2736222% per month effective (.68215-.40741)/(1+.40741) Present Value of Pension on retirement = 3,559,354 PV(0.2736222%,180,-25000,0,1) Amount required for Ashish is Rs. 10 lakh (then prices) when he completes 30 years of age Amount required for the other two children is inflation adjusted Rs.10 lakh equivalent to the amount given to Ashish, when each one of them completes 30 years of age.
27) B) Cur Age Age on Suneel's Amount / Equivalent amount due on PV at Suneel's retirement retirement their respective age of 30 Ashish 26 30 1000000 on Suneel's retirement 1000000 Sneha 23 27 1157625 1000000*(1.05)^(30-27) 3 years after Suneel's retirement 906314 1157625/(1 Garima 21 25 1276282 1000000*(1.05)^(30-25) 5 years after Suneel's retirement 848785 1276282/(1 Total fund required on Suneel's retirement 6,314,454 3559354+2755099 Total 2755099 28) B) Outflow of money on 20- Jun-2008 1-Jul-08-11100 Inflow on 1-Jan-09 400 1-Jul-09 400 1-Jan-10 400 1-Jul-10 400 1-Jan-11 400 1-Jul-11 400 1-Jan-12 400 1-Jul-12 400 1-Jan-13 400 1-Jul-13 400 1-Jan-14 400 1-Jul-14 10400 YTM on purchase 2.9014% on semi-annual effective basis 5.88700% on annual effective basis (1+.029014)^2-1 Reduction in yield since purchase 100 bps Required Yield 4.887% on annual effective basis (5.8875-1%) 2.4144% on semi-annual effective basis (1+2.4144)^(1/2)-1 Future inflows 1-Jul-09 400 1-Jan-10 400 1-Jul-10 400 1-Jan-11 400 1-Jul-11 400 1-Jan-12 400 1-Jul-12 400 1-Jan-13 400 1-Jul-13 400 1-Jan-14 400 1-Jul-14 10400 Discounting at required Yield these cash inflows as on 01-Jul-2009 PV of interest inflows 3,916.37 PV(2.4144%,11,-400,0,1) PV of principal receipt 7,877.56 10000/(1+4.887%)^5 PV of inflows as on 01-Jul-2009 11,794 (3916+7878) PV of inflows as on 28-Feb-2009 11608 11794/(1+4.887%)^(1/3) 29) B)
30) A) CII Date of purchase= 13/04/04 480 Date of Sale= 28/02/09 582 Purchase Price= 5 lakh Sale Price= 13 lakh LTCG= 1300000-(500000*582/480)= 693750 1300000-(500000*582/480) Less: Basic exemption= 180000 Taxable LTCG= 513750 693750-180000 Tax @20%= 102750 513750*0.2 E.Cess=3% 3082.5 102750*0.03 Total Tax Liability= 105832.5 102750+3082.5 Or 105830 ** No deduction u/s 80C from LTCG is allowed 31) C) 32) C) As any gratuity payment to central/state government servants is tax free