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

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

ARs. 20 lakh

BRs. 35 lakh

CRs. 45 lakh

DRs. 27 Lakh

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Suggested Answer: D

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

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Janessa

4 months ago

Totally agree with Rs. 35 lakh, makes sense!

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Carma

5 months ago

Wait, how did they calculate that? Seems off to me.

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Delmy

5 months ago

Rs. 27 lakh seems too low for a manager's insurance cover.

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Kenia

5 months ago

I think it should be higher, like Rs. 45 lakh.

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Alaine

5 months ago

Sachin's HLV should be around Rs. 35 lakh based on his income and expenses.

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Adelaide

5 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

5 months ago

Recall: HLV is the PV of future net earnings up to retirement, discounted at 8%.

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