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

6 days 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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Kayleigh

7 days 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

7 days 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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Fredric

12 days ago

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

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Deane

14 days 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

15 days ago

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

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Carma

16 days 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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Fredric

21 days ago

I think the answer is A) Rs. 3.84 lakh.

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