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AAFM CWM_LEVEL_2 Exam - Topic 6 Question 104 Discussion

Section C (4 Mark)Mr. Amit Jain has bought a house today which cost him Rs. 50 lacs by taking a loan of 30lacs for 15 years at 11% per annum compounded monthly. He currently has 10 lacs of financial assets and plans to save Rs. 3.25 lacs every year at the beginning of the year for the next 5 years. All his investments are expected to grow at a ROI of 15%per annum compounded quarterly. What will be the net worth of Mr. Amit after 5 years if the value of the house after 5 years is expected to be 75 lacs.
D) 9695565
A) 8723098
B) 7465780
C) 11655750

AAFM CWM_LEVEL_2 Exam - Topic 6 Question 104 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 104
Topic #: 6
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Mr. Amit Jain has bought a house today which cost him Rs. 50 lacs by taking a loan of 30lacs for 15 years at 11% per annum compounded monthly. He currently has 10 lacs of financial assets and plans to save Rs. 3.25 lacs every year at the beginning of the year for the next 5 years. All his investments are expected to grow at a ROI of 15%per annum compounded quarterly. What will be the net worth of Mr. Amit after 5 years if the value of the house after 5 years is expected to be 75 lacs.

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Suggested Answer: D

by Desmond at Jul 13, 2025, 02:35 PM

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Janet
7 months ago
I think option B seems like the safest bet for net worth.
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Verdell
7 months ago
Wait, can his investments really grow at 15%? Sounds too good to be true.
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Hayley
8 months ago
That loan interest is pretty high at 11%!
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Wilbert
8 months ago
Totally agree, those savings will add up nicely!
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Rory
8 months ago
Mr. Jain's house will appreciate to 75 lacs in 5 years.
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Olive
8 months ago
I feel like I should be able to solve this, but the monthly compounding for the loan and quarterly for the investments is throwing me off a bit.
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Stefania
9 months ago
I think the house value increase is straightforward, but I'm confused about how to calculate the total savings growth over 5 years.
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Altha
9 months ago
This question seems similar to one we did on investments and loans, but I can't recall the exact formulas we used for compounded interest.
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Barney
9 months ago
I remember we practiced calculating net worth, but I'm not sure how to factor in the loan interest correctly.
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Rana
9 months ago
This seems doable if I just focus on the key numbers - the loan, the investments, and the house value. I'll work through the calculations carefully and double-check my work to make sure I get the right answer.
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Myra
9 months ago
Okay, let's think this through methodically. First, I'll need to calculate the future value of the investments and the loan balance. Then I can add the house value and subtract the loan to get the net worth.
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Cecil
10 months ago
Whoa, this is a lot of information to keep track of. I'm not sure where to start - the loan, the investments, the house value? I'll need to break this down step-by-step.
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Earleen
10 months ago
This looks like a straightforward financial planning problem. I'll need to calculate the future value of the investments, the loan balance, and the house value to determine the net worth.
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Kayleigh
11 months ago
Alright, let's see if I can crunch these numbers and get the right answer. No pressure, right?
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Val
11 months ago
Haha, who buys a house these days? Mr. Amit must be some kind of millionaire.
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Tammara
11 months ago
I bet the correct answer is the one that's the most complicated to calculate. That's how they get you.
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Angelica
10 months ago
A) 8723098
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Jerry
12 months ago
I calculated it and got option C) 11655750 as the net worth after 5 years.
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Merilyn
12 months ago
I agree, we also need to consider the interest earned on his financial assets.
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James
1 year ago
I think we need to calculate the future value of all his investments and subtract the loan amount.
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Brunilda
1 year ago
This question seems complicated.
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Maryrose
1 year ago
Hmm, this seems like a tricky one. I better brush up on my compound interest and present value calculations.
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Sonia
11 months ago
Yes, we need to consider the compounding frequency and interest rates for each investment to find the net worth after 5 years.
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Noel
12 months ago
I think the key here is to calculate the future value of all his investments and assets.
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