AAFM GLO_CWM_LVL_1 Exam - Topic 9 Question 107 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 107
Topic #: 9

Ashok is 30 years old and plans to retire after another 25 years, is His annual expenditure is Rs. 2,00,000/-, and wants to maintain the same living standard as of now. Expected inflation rate is 5%. Calculate what will be the Ashok's annual expenditure requirement at the beginning of first year of his retirement?

ARs. 6,77,270/-

BRs. 5,72,281/-

CRs. 6,55,235/-

DRs. 5,86,326/-

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Suggested Answer: A

by Cathrine at Aug 02, 2025, 08:14 AM

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Britt

9 months ago

Wait, are we sure about these numbers? Seems off to me.

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Milly

9 months ago

I calculated it too, and I got Rs. 5,72,281/-.

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Fannie

9 months ago

Rs. 5,86,326/- is a safe estimate, but inflation is unpredictable!

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Dalene

9 months ago

I think it's more like Rs. 6,55,235/-, inflation is tricky!

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Heidy

10 months ago

The inflation will really hit hard, Rs. 6,77,270/- sounds about right.

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Floyd

10 months ago

I feel like I might have mixed up the inflation rate with the interest rate in my practice. I hope I remember the right formula!

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Wendell

10 months ago

I think the answer should be around Rs. 6 lakhs, but I can't recall the exact calculation steps.

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Sheldon

10 months ago

This question feels similar to the practice problems we did on retirement planning. I think I need to use the formula for future value of expenses.

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Mozell

11 months ago

I remember we calculated future expenses in class, but I'm not sure if I got the inflation adjustment right.

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Deonna

11 months ago

This seems tricky, with the inflation rate and long time period. I'll need to work through it step-by-step to make sure I don't miss anything. Might be good to draw out a timeline to visualize the changes over time.

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Beatriz

11 months ago

Okay, I think I've got this. I'll need to use the formula FV = PV * (1 + r)^n, where FV is the future value, PV is the present value, r is the annual inflation rate, and n is the number of years. Should be able to plug in the numbers and get the answer.

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Tayna

11 months ago

Hmm, not sure I'm following the question fully. I'll need to re-read it carefully and make sure I understand all the variables involved before attempting to solve this.

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Tu

11 months ago

This looks like a straightforward compound interest calculation. I'll need to find the future value of the current annual expenditure given the inflation rate and time period.

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