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AAFM GLO_CWM_LVL_1 Exam - Topic 5 Question 54 Discussion

Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years. The cost of the house is expected to increase by 15% pea for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires.
D) 15883.32
A) 63422.72
B) 65185.55
C) 16537.56

AAFM GLO_CWM_LVL_1 Exam - Topic 5 Question 54 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 54
Topic #: 5
[All GLO_CWM_LVL_1 Questions]

Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years. The cost of the house is expected to increase by 15% pea for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires.

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Suggested Answer: D

by Nelida at Dec 09, 2022, 04:57 AM

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Lizette
7 months ago
Wait, how did you calculate the final price?
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Carma
7 months ago
I think option B is the best choice here.
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Stephania
8 months ago
63422.72 seems way too high for a SIP!
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Jaime
8 months ago
Sounds about right, those appreciation rates are pretty standard.
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Laila
8 months ago
The flat will cost around Rs. 61,35,000 after 6 years.
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Cristina
8 months ago
I believe the down payment is 25% of the final house price, but I'm confused about how to calculate the total cost after the increases.
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Albina
8 months ago
I practiced a question like this where we had to find the SIP amount, but I can't recall if we used monthly compounding or annual.
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Giuseppe
8 months ago
I think the house value after 6 years will be quite high, especially with that 15% increase initially.
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Carole
8 months ago
I remember we calculated future values in a similar question, but I'm not sure about the exact formula for SIP.
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Mitsue
8 months ago
I'm a little confused by the distinction between the subjective and quantitative aspects here. I'll need to re-read the question and options carefully to make sure I understand the difference.
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Jose
8 months ago
I could be wrong, but wasn't it vBond that handles the orchestration? I always get those confused.
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Herminia
8 months ago
Hmm, this is a tricky one. I think the "Press" action would be the right choice here, since the button has been identified as a Region. But I'll double-check the other options just to make sure I'm not missing anything.
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Vivan
9 months ago
I feel confident the answer is D. position: fixed; since that's the only one that positions an element relative to the viewport, not its parent element.
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