AAFM Exam GLO_CWM_LVL_1 Topic 6 Question 91 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 91
Topic #: 6

Sachin aged 35 years is married and is working as a manager in M/s Birla Mill Ltd. His most likely retirement age is 60 years. His present salary is Rs. 3,00,000/- pa. His self-maintenance expenses are 30,000/- per year. Life insurance premium paid is 15,000/-. Income tax & professional tax amount to Rs. 20000/-. Rate of interest assumed for capitalization of future income is 8%. Calculate Sachin's HLV to recommend adequate insurance cover

ARs. 20 lakh

BRs. 35 lakh

CRs. 45 lakh

DRs. 27 Lakh

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Suggested Answer: D

by Marilynn at Sep 16, 2024, 05:07 AM

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Brock

11 days ago

I'm not sure, but I think the answer might be C) Rs. 45 lakh, considering all the expenses and future income.

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Weldon

13 days ago

I agree with Venita, because Sachin's future income needs to be capitalized at 8% to calculate his HLV.

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Alpha

17 days ago

I think the answer is B) Rs. 35 lakh. The question provides all the necessary information to calculate the HLV, and I've double-checked my calculations.

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Merilyn

1 days ago

I agree with you, the answer is B) Rs. 35 lakh. Sachin's future income needs to be capitalized to determine the adequate insurance cover.

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Venita

18 days ago

I think the answer is B) Rs. 35 lakh.

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