AAFM Exam GLO_CWM_LVL_1 Topic 8 Question 86 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 86
Topic #: 8

Mr. Pramod Jain (age 40 years) has life interest in a Trust property. The annual income from Trust property for last three years is as under:

The Trust has spent Rs. 5,000/- per year for collection of the income. The value of life interest of Re 1/- at the age of 40 is Rs. 10.093/-. The value of the property on the valuation date is Rs. 5 lakh. Find the value of life interest.

ARs. 3.84 lakh

BRs. 3 lakh

CRs. 3.27 lakh

DRs. 5 lakh

Show Suggested Answer

Suggested Answer: B

by Alexia at Aug 02, 2024, 02:21 PM

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Angelo

2 months ago

Wait, did they say the trust spent Rs. 5,000 per year for 'collection of the income'? That's a lot of paperwork, if you ask me. Maybe they should just set up a direct deposit.

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Josphine

13 days ago

Mozelle: Definitely, they should look into streamlining their processes.

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Dawne

19 days ago

User 3: I think setting up a direct deposit would save them a lot of money.

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Mozelle

26 days ago

User 2: Maybe they should consider a more efficient way to handle the income.

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Emeline

1 months ago

User 1: I agree, Rs. 5,000 per year for paperwork seems excessive.

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Kayleigh

2 months ago

Life interest in a trust property? Sounds like a real estate-themed version of 'Survivor'! I just hope the trustee doesn't vote me off the island.

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Ozell

2 months ago

This looks like a tricky one. But I've got my calculator ready and I'm going to give it my best shot. Gotta stay sharp for these exams, you know!

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Minna

2 months ago

B) Rs. 3 lakh

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Dorothy

2 months ago

A) Rs. 3.84 lakh

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Fredric

2 months ago

But the value of the property is Rs. 5 lakh, so it must be D) Rs. 5 lakh.

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Deane

2 months ago

Hmm, the question also mentions the value of the property and the cost of collecting the income. I'll need to factor those in as well. Let me think this through carefully.

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Viva

2 months ago

I disagree, I believe the answer is C) Rs. 3.27 lakh.

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Carma

2 months ago

The value of the life interest should be calculated based on the annual income from the trust property, right? I'm going with option C - Rs. 3.27 lakh.

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