BlackFriday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AAFM Exam CWM_LEVEL_2 Topic 6 Question 86 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 86
Topic #: 6
[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?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Mitsue at Sep 07, 2024, 04:29 AM

Limited Time Offer

25%

Off

Get Premium CWM_LEVEL_2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Joaquin
1 months ago
Haha, Stefany makes a good point. I bet Mr. Bhatia is just itching to upgrade to a sports car. Who needs a boring old Wagonr when you can have a Prancing Horse?
upvoted 0 times
...
Lenora
1 months ago
I calculated the fund accumulation and I think it's around Rs. 27.58 lacs, so option B.
upvoted 0 times
...
Stefany
1 months ago
Hold on, guys. What if Mr. Bhatia decides to buy a Ferrari instead? Then the calculations would be completely different. We need more information!
upvoted 0 times
...
Olen
1 months ago
That's a good point, but the potential return from the SIP could outweigh the repair costs.
upvoted 0 times
...
Rolf
1 months ago
I agree with Stephaine. The math checks out, and B) is the correct answer. This is a classic finance problem, not rocket science.
upvoted 0 times
Louvenia
3 days ago
I agree with Stephaine. The math checks out, and B) is the correct answer. This is a classic finance problem, not rocket science.
upvoted 0 times
...
Charlena
5 days ago
No, I believe the correct answer is B) Rs. 27.58 lacs.
upvoted 0 times
...
Elvis
29 days ago
I think the answer is A) Rs. 23.66 lacs.
upvoted 0 times
...
...
Lura
2 months ago
But what if the car needs major repairs in the next 5 years?
upvoted 0 times
...
Lenora
2 months ago
I agree, investing in an SIP with 15% yield seems like a better option.
upvoted 0 times
...
Olen
2 months ago
I think Mr. Bhatia should postpone buying a new car.
upvoted 0 times
...
Stephaine
2 months ago
The answer has to be B) Rs. 27.58 lacs. The monthly EMI of Rs. 6,312 for 5 years at 15% yield would definitely result in a higher accumulated fund than the other options.
upvoted 0 times
Anjelica
2 months ago
User 2
upvoted 0 times
...
Lashawn
2 months ago
User 1
upvoted 0 times
...
...

Save Cancel