Q1. Mr.

A has gross annual salary of 9 lakh of which he saves 30% which include
statutory EPF deduction, PPF and monthly systematic investment in long term MF
scheme. Another 30% goes toward servicing of household & car loan & taxes. His
financial planner advice him to accumulate 6 months household expense in liquid fund.
HE change job and expect immediate rise of 20% in his gross income .You estimate
that other heads would not change materially except his household expense which
would rise by 5% due child education. How many months will it take to accumulate
liquidreserve?
a.25months
b.11months
c.14months
d. 13 months
Q2. An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He
arranged a project of rs 1.5crore by a bank on 1st july 2009 at a rate of 12%p.a. the
terms of finance were quarterly invested.only payments up to six quarter and the
repayment of premium in three equal installments from the end of seven quarter along
with interest on the loan outstanding.he infuced fresh own funds towards working
capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the
project completed with a profit of rs 4.5crore on 6th september 2012.find the return
generated by the project
a)22.59%p.a.
b)30.16%p.a.
c)30.57%p.a.
d)32.37%p.a.

NA

Q3. Mr. A is of 35 yrs with spouse and a kid of an age 5 yrs. His strategic asset
allocation is 50:35:15 in equity, debt and liquid. He is able to invest rs 1.5lakh pa
immediately to work various life goal. At age 40 the allocation would change to
40:50:10 in equity, debt and liquid asset with annual investment going up to 2.5 lakh
for 5 more years. At age 45, for next 10 year he adapts the conservative wealth
protection allocation 25:70:5 in eq, debt & liquid asset with 3 lakh pa investments. The
per annum return expected in this stage are; from equity : 12%.11% & 10%, from
debt : 9%,8% & 7%, from liquid asset : 6,5%,5.5% & 4.5%.What amount could he
accumulate by his age 55 years?
a. 113.9 lakhs
b. 97.21 lakhs
c. 66.65 lakhs
d. 117.91 lakhs
Q4. An individual start investing immediately for 10 year annually Rs 80000 in the ratio
70:30 in equity and debt products. He expects the return from equity and debt to be
12.5% pa & 9.5% pa. during this period. To protect the wealth he rebalance the
portfolio in 40:60 of equity and debt after 10 yrs and invest in same ratio annually rs
1.5 lakh for next 10 years. The return expected from equity and debt in this period
subsides to 10.5% pa and 7.5% pa respectively. What could be his total investment at
the end of the entire tenure of his investment?
a. 60.38 lakh
b. 60.31 lakh
c. 70.42 lakh
d. 61.58 lakh
Q5) Ramesh to car loan of Rs 8 Lakhs and personal loan of Rs 3 lakh. The rate of
interest is 12 % and 18 % with monthly reducing basis. He made windfall gain of Rs 6
Lakhs in 2013. His financial advisor advised him to repay these loans and invest the
monthly installment in Bank deposits with interest rate between ranges of 8 10 %. He
has two more years to repay these loans. Do you think the advice given to him is
correct?

Ans:
Yes as his net worth will increase between Rs 72500 to 110000
Yes, as his net worth will increase between Rs xxxxxx to Rs xxxxxx ( I dont
remember the no)
Yes, as his net worth will increase between Rs xxxxxx to Rs xxxxxx (I dont remember

the no)
-No, as his net worth will reduce between Rs 15700 to Rs 46500

NA

Retire
Q6 Scholarship of Rs 10lacs per year on perpetual basis 3 yrs ago. ROI is 7.5%. Now he
wants to increase by Rs5lacs p.a at ROI declined by 1%. What entire amount he need?
Got ans= Rs.2,13,71,578.31
Q7 Person has accumulated Rs 50 lacs by investing in Equity and Debt in ratio of 70:30
at age 50. Now he makes fresh investment of Rs 3lacs p.a for 5 yrs and Rs 5lacs p.a for
further 5 yrs. He made fresh investment in 50:50 and rebalance his portfolio at age 55
in original proportion. What is accumulated corpus at age 60? (Equity 11% and debt
8%)
A)1.81 crore, B)1.89 crore, C)1.87 crore, D) 1.83 crore.
Q8 Account opened on 31/3/2013 deposit each subsequent amount on the last day of
the year amount Rs 1lacs p.a. What will be the accumulated amount on Maturity?
(8.8%)
Ans End mode N=16, I=8.8 , pmt= -1lac , Fv=? 3244700. py and cy =1
ans. 3244700
Q9 Loan is taken on 14.5% p.a. Processing fee 1.5% of interest is on Monthly bases on
Reducing volume. Calculate effective rate of return?
Ans. N=12, I=14.5% Effective rate *15.50*
Q10 The Gratuity not covered, Mr x has received the lump sum of Rs 12.5 lakh, has last
drawn salary of Rs 1.05 lakh and some hiked from 90k seven months. The company
paid 40% D.A and 50% commission on basic salary. What is taxable gratuity amount?
A)310000, B)292500, C)255000, D)472500 or 367500

Q11 30 yrs old earn Rs 8 lacs p.a and He started planning for retirement. He earmarks
10% of his annual earnings, which he excepts would rise every by 10% to retirement
fund would yield 8.5% p.a return are expected to be 12% p.a and money from such
portfolio is remade and invested in retirement fund every 10yrs. What corpus is
expected to retire with at age 60?
A) 3.88 crore, B) 1.85 crore, C) 4.22 Crore, D) 4.53 Crore..

ANS=3.62 Cr
Sol: The answer is ( A ) 3.88 Crores. . For solution you should use growing annuity
formula for first, second and third 10 years seperately, recalulating the salary every
time with g=10% and r=12%. The resultant fund should be reinvested@ 8.5% in
retirement fund for 20 years, 10 years and 0 years. I would like to have the views from
Prashant
Q 12 Your client started investing for his retirement goal late at age of 45 yrs. On
reaching 55yrs today he has accumulated Rs 35lakh which he find insufficient on
reaching age 60, if he draw 5 lakh p.a. Inflation-adjusted from his corpus for 30yrs
post-retirement if the corpus is invested at 7.5% p.a with inflation exception of 5.5%
p.a. If prior to retirement the growth rate is 9.5% is considered for investment already
accumulated fund and fresh investment of 3.5 lakh/ANNUM, you estimated the period
of delayed retirement beyond 60yrs to be? A) 3 yrs, B) 4yrs, C) 4yrs.4 months D)
6yrs.6 months GETTING

ANS=3

Q13 This is come under PERFA and IRDA license of insurance company?
A) Reliance life insurance, B) Birla sun life insurance, C) Star dus dia life insurance,
D) Mahindra life insurance.

Q14 Sunil is a young professional ageing 27 years, who has started investing in a
ULIP of a Insurance company. His annual contribution is Rs 60,000 in the beginning of
the year. He has opted for balanced fund looking at the bear phase of the market. He is
optimistic and believes that the market will rise and like wise interested in moving to
growth fund, say after 2 years and is considering to a protector fund option 5 years
before retirement, which as per his company.s policy is 58 years. Considering rate of
return for growth fund be 12 %, balanced fund be 8 % and protector fund be 6 %,
what will be the accumulated value of the ULIP if initially, investible amount of the
contribution is 70 %, increasing by 10 % for subsequent years?

a) Rs 1,71,06,852

b) Rs 76,20,539

c) Rs 1,69,56,625

d) Rs 1,29,10,277

ALSO IN OLD RPEB SAMPLE PAPER

Q15)Girish received an inheritance of Rs. 2 Lakh. He wants to withdraw equal periodic

payments at the beginning of each month for 10 years starting after 10 years. He
expects to earn 12% annual interest, compounded monthly on his investments. How
much can he receive each month?

a)

Rs. 9,470

b)

Rs. 9,376

c)

Rs. 8,912

d)

Rs. 8,824

Q16)The cash purchase price of an item is Rs. 2,00,000. The selling company however
offers installment plan, which allows an immediate payment of Rs. 10,000 and a series
of 5 half-yearly payments thereafter. The first installment is payable after one and a
half year. If the company wants rate of interest of 10% P.A. compounded half-yearly,
what will be the half-yearly installment?

a)

Rs. 43,885

b)

Rs. 48,383

c)

Rs. 50,802

d)

Rs. 29,412

Q17)Alok, age 25 years, plans to retire at age 60 and his life expectancy is 75 years.
His current expenditure is Rs. 2,00,000 annually. He estimates no reduction of
expenses post retirement. How much will he save per annum to achieve his target, if
inflation rate is 6% and expected yield from investment is 10%? Assume he wishes to
leave an estate of 10% of his savings at the time of retirement.

a)

Rs. 73,878

b)

Rs. 9,612

c)

Rs. 66,490

d)

Rs. 8,651

Q18)Sundar invests a sum of Rs. 72,000 at 5% p.a. After 7 years the rate of interest
was changed to 5% p.a, compounded half yearly. After a further period of 3 years the
rate was again changed to 6% p.a, compounded quarterly. What will Sundar get at the
end of 15 years of commencement?

a)

Rs. 1,40,000

b)

Rs. 1,48,251

c)

Rs. 1,58,242

d)

Rs. 1,55,000

Q19)Nitish is a 30 year-old self employed youth and has been using the PPF account to
accumulate Rs. 30,000 per year, for his future needs. The PPF account provides a
compounded return of 8% p.a. He does not have a clear view yet on financial goals and
needs but has been saving as a habit, for the last 5 years. Nitish is willing to look at a
lifestyle after retirement that fits into a fixed Rs. 3,00,000 per annum spend, for an
estimated 15 years. What is the spending opportunity for Nitish, at the time of his
retirement at 60 years, given his saving and assuming a rate of 6% on his funds after
retirement? (Assumption: All computations for interest spend and savings compound
annually, assuming beginning of the period investment. Answers to be rounded off to
the nearest 5 rupees).

a)

Rs. 20,81,345

b)

Rs. 18,54,425

c)

Rs. 14,26,890

d)

Rs. 24,94,570

Q20)Sundar is a 30 year-old self employed youth with a life expectancy of 75 years. He

has been saving Rs. 30,000 per year providing a compounded return of 8% p.a. for last
5 years. Sundar wants to retire after total 25 years of saving. His post retirement funds
are expected to earn 6% pa returns and expenses after retirement are fixed at Rs. 3
lakh per year. He wants to know what rate of return should he get on his current
accumulated fund as well as his future yearly saving of Rs. 30,000 pa till retirement. To
fund his retirement needs and leaving Nil estate behind. (Assumption: All computations
for interest spend and savings compound annually, assuming beginning of the period
investment).

(a)

11.72%

(b)

11.69%

(c)

10.61%

(d)

13.20%