AAFM CWM_LEVEL_2 Exam - Topic 4 Question 108 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 108
Topic #: 4

Section C (4 Mark)

What amount needs to be deposited today in an account that would pay Rs. 1,10,000 per year for the first 10 years and Rs. 2,25,000 for the next 5 years. If the ROI for the first 10 years if 10.75 % p.a. compounded annually and 13% p.a. compounded quarterly for the balance period?

A779030

B912336

C935282

D995282

Show Suggested Answer

Suggested Answer: C

by Billye at Nov 01, 2025, 03:52 PM

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Quentin

5 months ago

C feels right with the cash flows.

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Kris

5 months ago

I like B because it seems reasonable.

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Fannie

5 months ago

Yeah, the compounding adds complexity.

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Alecia

5 months ago

The ROI makes it tricky.

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Quentin

6 months ago

I feel option C might be right.

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Kris

6 months ago

I’m leaning towards option B.

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Fannie

6 months ago

I think it’s about calculating present value.

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Alecia

7 months ago

This question is tough!

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Chanel

7 months ago

I thought the ROI would make it lower, interesting!

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Marnie

7 months ago

I agree, B seems right based on the calculations.

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Clay

7 months ago

Wait, how can it be that high?

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Lavera

7 months ago

I think it’s option B, 912336.

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Pete

7 months ago

Haha, this question is like a riddle wrapped in an enigma, wrapped in a layer of compound interest. Good luck, everyone!

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Dusti

8 months ago

Hold up, are we talking about rupees or dollars here? I'm getting a little confused with all these numbers.

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Lynelle

8 months ago

Wait, what? I thought this was a simple interest problem. Now you're telling me it's compound interest? I'm out.

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Annice

8 months ago

Okay, let's see... 10.75% compounded annually for 10 years, then 13% compounded quarterly for 5 years. Piece of cake! Or is it?

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Leonida

8 months ago

I feel like I might mix up the interest rates. I should double-check which rate applies to which period before calculating.

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Kimbery

8 months ago

I think the first step is to find the present value of the Rs. 1,10,000 payments first, then tackle the Rs. 2,25,000 payments. That sounds familiar from our practice questions.

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Sage

8 months ago

I'm not entirely sure about the compounding for the second period. Is it quarterly for the entire 5 years or just for the last year?

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Nikita

9 months ago

This question is a real head-scratcher! I'm going to need a calculator and a crystal ball to figure this one out.

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Whitley

9 months ago

The answer is definitely over 900k.

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Candida

10 months ago

I remember we did a similar problem in class where we had to calculate the present value of multiple cash flows. I think I need to break it down into two parts for this one.

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Michell

10 months ago

This is a tough one, but I'm going to give it my best shot. I'll need to stay focused and double-check my work to make sure I don't miss anything.

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Teresita

10 months ago

No problem, I've got this. The key is to use the right PV formula for each annuity period and then discount those values back to the present. I'm confident I can get the right answer.

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Lavelle

10 months ago

Hmm, I'm a bit confused by the different interest rates and compounding periods. I'll need to review my formulas to make sure I'm applying them correctly.

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Tonette

10 months ago

Okay, I think I can handle this. I just need to set up the present value calculations for the two different annuity periods and then add them together.

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