AAFM CWM_LEVEL_2 Exam - Topic 2 Question 66 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 66
Topic #: 2

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Bhatia owns a Maruti Wagonr with a monthly EMI of Rs. 6,312. The above loan will be completely repaid by August 2008. Mr. Bhatia planning to purchase a new car worth of Rs. 15 lakh. For this he has to take a full value loan of the car with 9% interest for 5 years. But his present car is in good condition and life of this car is approximately another 5 years repairs and maintenance cost are minimum. If he postpones his car purchasing plan now and deposit the same EMI outflow required for new car into an SIP with a minimum 15% yield for the next five years, then calculate the fund he can accumulate?

ARs. 23.66 lacs

BRs. 27.58 lacs

CRs. 23.49 lacs

DRs. 30.47 lacs

Show Suggested Answer

Suggested Answer: B

by Serina at Oct 17, 2023, 10:15 AM

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Adell

4 months ago

So, which option is the right answer?

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Douglass

4 months ago

Totally agree, waiting could pay off big time!

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Laurel

4 months ago

Really? 15% yield seems too optimistic.

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Marleen

4 months ago

If he invests that, he could accumulate a lot!

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Phung

4 months ago

The EMI is Rs. 6,312.

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Jamal

5 months ago

I remember the concept of SIPs, but I’m confused about how to factor in the monthly contributions versus the total amount at the end.

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Emerson

5 months ago

This seems like a straightforward application of compound interest. I feel like the answer should be around Rs. 23 lacs based on my calculations, but I could be off.

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Victor

5 months ago

I think if he invests the EMI for 5 years at 15%, it should grow significantly, but I can't recall how to calculate the total amount accurately.

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Meaghan

5 months ago

I remember we practiced a similar question about SIPs and calculating future value, but I'm not sure about the exact formula to use here.

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Teddy

5 months ago

I've got a strategy for this. First, I'll calculate the total amount Mr. Bhatia would pay for the new car loan. Then I'll compare that to the SIP investment over 5 years to see which option is better.

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Noe

5 months ago

Okay, let me think this through step-by-step. We have the current car loan, the new car cost, the interest rate, and the SIP investment details. I think I can work this out.

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Kip

5 months ago

This looks like a tricky finance question. I'll need to carefully break down the details and do some calculations to figure out the right answer.

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Luisa

5 months ago

Hmm, I'm a bit confused by all the numbers and variables in this problem. I'll need to re-read it a few times and make sure I understand the key information before I start solving.

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Tanja

5 months ago

Okay, I've got this. Customizing the out-of-box enrollment flow to match requirements is definitely one of the steps. And using the provider enrollment flow out of the box seems like a good second option. I feel pretty confident about this.

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Allene

5 months ago

Okay, let me think this through. I think the communications plan is a good idea, but I also like the idea of holding visioning workshops to get everyone on the same page. I'll need to weigh the pros and cons of each approach.

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Helaine

5 months ago

Okay, let me see if I can break this down. We need to deploy the archive that enables hosted transparent decision services. Based on the options, I'm guessing B is the correct answer, but I want to double-check my understanding.

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Dahlia

5 months ago

This looks like a straightforward question about GEO redundancy. I'll need to think through the different product options and their capabilities.

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