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AAFM CWM_LEVEL_2 Exam - Topic 2 Question 66 Discussion

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?
B) Rs. 27.58 lacs
A) Rs. 23.66 lacs
C) Rs. 23.49 lacs
D) Rs. 30.47 lacs

AAFM CWM_LEVEL_2 Exam - Topic 2 Question 66 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 66
Topic #: 2
[All CWM_LEVEL_2 Questions]

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?

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Suggested Answer: B

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

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Adell
8 months ago
So, which option is the right answer?
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Douglass
8 months ago
Totally agree, waiting could pay off big time!
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Laurel
9 months ago
Really? 15% yield seems too optimistic.
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Marleen
9 months ago
If he invests that, he could accumulate a lot!
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Phung
9 months ago
The EMI is Rs. 6,312.
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Jamal
9 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
9 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
9 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
10 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
10 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
10 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
10 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
10 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
10 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
10 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
10 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
10 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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