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AAFM GLO_CWM_LVL_1 Exam - Topic 4 Question 15 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 15
Topic #: 4
[All GLO_CWM_LVL_1 Questions]

Sachin aged 35 years is married and is working as a manager in M/s Birla Mill Ltd. His most likely retirement age is 60 years. His present salary is Rs. 3,00,000/- pa. His self-maintenance expenses are 30,000/- per year. Life insurance premium paid is 15,000/-. Income tax & professional tax amount to Rs. 20000/-. Rate of interest assumed for capitalization of future income is 8%. Calculate Sachin's HLV to recommend adequate insurance cover

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Suggested Answer: D

by Stephaine at May 04, 2022, 11:14 AM

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Janessa
6 months ago
Totally agree with Rs. 35 lakh, makes sense!
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Carma
6 months ago
Wait, how did they calculate that? Seems off to me.
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Delmy
6 months ago
Rs. 27 lakh seems too low for a manager's insurance cover.
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Kenia
6 months ago
I think it should be higher, like Rs. 45 lakh.
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Alaine
7 months ago
Sachin's HLV should be around Rs. 35 lakh based on his income and expenses.
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Adelaide
7 months ago
Hmm, I'm a bit confused by the different fetch mode options. I'll need to review the PDO documentation to make sure I understand the differences between FETCH_ASSOC, FETCH_OBJ, FETCH_BOTH, and FETCH_CLASS.
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Ira
7 months ago
Recall: HLV is the PV of future net earnings up to retirement, discounted at 8%.
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