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

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.

A63422.72

B65185.55

C16537.56

D15883.32

Show Suggested Answer

Suggested Answer: D

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

Limited Time Offer

25%

Off

Get Premium GLO_CWM_LVL_1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lizette

6 months ago

Wait, how did you calculate the final price?

upvoted 0 times

...

Carma

6 months ago

I think option B is the best choice here.

upvoted 0 times

...

Stephania

6 months ago

63422.72 seems way too high for a SIP!

upvoted 0 times

...

Jaime

6 months ago

Sounds about right, those appreciation rates are pretty standard.

upvoted 0 times

...

Laila

6 months ago

The flat will cost around Rs. 61,35,000 after 6 years.

upvoted 0 times

...

Cristina

7 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.

upvoted 0 times

...

Albina

7 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.

upvoted 0 times

...

Giuseppe

7 months ago

I think the house value after 6 years will be quite high, especially with that 15% increase initially.

upvoted 0 times

...

Carole

7 months ago

I remember we calculated future values in a similar question, but I'm not sure about the exact formula for SIP.

upvoted 0 times

...

Mitsue

7 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.

upvoted 0 times

...

Jose

7 months ago

I could be wrong, but wasn't it vBond that handles the orchestration? I always get those confused.

upvoted 0 times

...

Herminia

7 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.

upvoted 0 times

...

Vivan

7 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.

upvoted 0 times

...