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AAFM Exam CWM_LEVEL_2 Topic 5 Question 80 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 80
Topic #: 5
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Bhatia owns a Maruti Wagonr with a monthly EMI of Rs. 6,312. The above loan will be completely repaid by August 2008. Mr. Bhatia planning to purchase a new car worth of Rs. 15 lakh. For this he has to take a full value loan of the car with 9% interest for 5 years. But his present car is in good condition and life of this car is approximately another 5 years repairs and maintenance cost are minimum. If he postpones his car purchasing plan now and deposit the same EMI outflow required for new car into an SIP with a minimum 15% yield for the next five years, then calculate the fund he can accumulate?

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Suggested Answer: B

by Ora at Jun 24, 2024, 11:11 PM

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Marta
7 months ago
Hey, I'm just happy I'm not the one buying a new car. The maintenance and loan costs sound like a headache. But if I had to choose, I'd say B. Rs. 27.58 lacs. Seems like the most reasonable option.
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Yong
7 months ago
True, but financially speaking, the SIP option seems more beneficial.
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Flo
7 months ago
Wow, this is a tricky one. I'm going to go with D. Rs. 30.47 lacs. The 15% yield must be doing some serious magic with that EMI money!
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Leota
5 months ago
D it is then. The SIP must be working wonders with that EMI amount.
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Mammie
5 months ago
I'm not sure, but D does sound like a good option with that high yield.
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Robt
6 months ago
Yeah, I agree. D seems like the best choice considering the interest rate.
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Inocencia
6 months ago
I think D is the correct answer. The 15% yield is really helping out.
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Catalina
7 months ago
But what if he really wants the new car? Maybe he should consider other factors too.
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Robt
7 months ago
Hmm, I'm not sure. The question is a bit complicated, but I'll go with C. Rs. 23.49 lacs. Gotta trust my gut on this one!
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Dick
7 months ago
I agree, the return from SIP seems like a better option in the long run.
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Kristel
7 months ago
I think Mr. Bhatia should postpone buying the new car and invest in SIP.
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Avery
7 months ago
I think the answer is B. Rs. 27.58 lacs. The monthly EMI of Rs. 6,312 for 5 years with a 15% yield should result in a substantial fund accumulation.
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Kristal
6 months ago
User 3
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Pa
6 months ago
User 2
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Ruthann
6 months ago
User 2
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Gladys
7 months ago
User 1
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Lynelle
7 months ago
User 1
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