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## Subscribe

## somnath banik said

It is very intersting and klowledge i gather from this site. Many Many thanks.

Somnath Banik.

## Prashant Shah said

Thanks for appreciation.

## kaushal said

Dear Sir,

I have to ask a problem of Raghuveer Singh Case Study Q.No 24

My question is this:

Amount, % of Total, Indicative Returns and Volatility are given ,

How to calculate Max. Return , Min return, Max PF Return, Min PF Return.

When returns are normally distributed.

Thanks

## kaushal said

hello sir,

Please this question no 24 from Rananjoy Majumder and Raghuveer singh case study july 2008.

I have to ask a problem of Raghuveer Singh Case Study Q.No 24

My question is this:

Amount, % of Total, Indicative Returns and Volatility are given ,

How to calculate Max. Return , Min return, Max PF Return, Min PF Return.

When returns are normally distributed.

Thanks

## R Varadarajan said

In the case of normal distribution, 99% of the observations will lie between Arithmetic Mean+/- 3 Standard deviation. Hence the Minimum Return & Maximun Return of the security would be ( Mean- 3 Std Deviation) & ( Mean + Standard Deviation). Once we know the Mean and Standard deviation of the PF we can arrive at the Min & Max Return of the Portfolio, as well. Had the actual figures been given, the answer could have been worked out.

## hepguy85 said

Hello, I had cleared the Investment and tax exam. Thank you for your support.. This side is very helpful for me. I have some questions that is come in Exam of Insurance Please help me to solve it.

Q1. A bunglow was constructed at a cost of rs 2crore in 2006 and a further Rs1crore was spent over on furnishing in 2008.the bunglow is valued at Rs12 crore in 2012.the costs of construction and furnishing have escalated rate 10% and 15% respectively over the period.the owner wants to totally absolve himself of any expences,in case bunglow is razed down due to some peril. what value would you advise the owner to insure the property?

A) 5.34 Crore.

B)3.50 crore.

C)5.90 crore.

D)5.29 crore.

Q2. A client’s 20 year money back policy of sum assured rs 2 lakh has annual premium of rs 13672, Policy pays back 20% of s.a after each of first three 5-years survival periods and another 40% of s.a on surviving full term. The client has received the third money back. You estimate the gross returns presently in the policy considering reversionary bonus of rs 50 per thousands s.a. you compare the cost benefit if the client pays all premiums and survives the policy and also gets rs 150 per thousand s.a as loyalty bonus. you conclude that _________.

a)the overall return improves marginally by 1.15% p.a

b)the additional in flow on 5 future premiums would amount to over 19% p.a returns

c) the additional in flow on 5 future premiums would amount to nearly 30% p.a returns

d) the additional in flow on 5 future premiums less opportunity cost would amount to nearly 12%

Q3. 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

Q4. 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 back 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.

Q5. A company in the business of warehousing.in 2012,insured its warehouse premises also calamity for a value of rs 1.65cr towards liability coverage,separate insurance towards clients for rs 15cr each were taken to cover the goods kept at any time.the company has cover of rs 10cr also.the warehouse was completely destroyed in fire.the registered amount of rs 30cr.what insurance can be setteled in the company’s claim?

a)rs 1.65 cr to the company and rs 30cr towards liablity to clients.

b) nil to the company and rs 26.65cr towards liablity to clients.

c) rs 1.65 cr to the company and rs 17.5cr towards liablity to clients.

d) rs 1.65cr to the company and rs 25cr towards liability to clients.

Q6. CD is promissory note issued by Bank and Financial Institute. That is part of?

A) CRL only

B) Both CRL and SLR

C) Either CRL or SLR

D) SLR only

Q7. Car comprehensive loan is 1.5 lakh. Deducted 5000 from loan. The car is damaged for an amount of 60 k with 10k accessories he forgets to declare it. Insurance he gets 30k. What will be the claim he will get.

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

Sir, Please solve this Questions. Thanks Sir.

## pulkitbshah said

hepguy85 i want to know the source from where you have got above mentioned questions as i have also got the same sums in insurance planning exams so kindly give me the source from which book you copied the sums which you send to solve by prashant shah

## Prashant Shah said

Dear Pulkit its not a proper question to ask. To the best of my knowledge, the question are not from any of the book.

Regards,

Prashant.

## Amarnath said

Sir plz give me your mail I’d

## Naman Luhana said

Thank u Sir….

It was really very helpful

## Chandrakant said

This is Very helpful and informative Site. I am grateful to you sir for this great work.

## Neha parikh said

hello sir,

This is really a very helpful site

M Neha i have completed 4 modules of cfp and m planning to give final module in may first week. Can u please guide me on how should i start studying . i m very confused that how much in detail should i revise my 4 modules. so can u please guide me in it.

Thanking you

Neha

## Prashant Shah said

Dear Neha,

You can start with the AFP section of the site, so that you develop basic understanding of the calculations involved. Apart from it the basic understanding abt the rest of the modules is necessary.

All the best,

Prashant V Shah.

## Neha parikh said

hello sir,

thank you so much for your help i will work on it accordingly , if any doubt will revert back yo you

thanking you

neha

## sadashiv kashyap said

Sir you are such a tremendous person .

You taken whatever you r giving back to society .

It was very thankfull to you sir wahtever u Share your knowledge with us . thanx a trilion .

I salute you . Hats off Sir .

I hope in future you guide cfp aspirant .

## Prashant Shah said

Thank you, Mr. Kashyap.

The entire idea behind the website is to promote CFP as career qualification.

## Priyanka said

Dear Sir,

I Finally cleared all the 4 modules of CFP…Module 5 is still to go….and i would like to Thank Prasanth Sir and Manish for all their help and support.

Regards,

Priyanka

## Prashant Shah said

Dear Priyanka,

Congratulations!!!

Hardwork is always paid. Keep it up.

Prashant.

## maranijagadeesh said

sir iam persuing CFP and iam writing IP module can i know valuble suggetions from all of u

## raghav heda said

how u cleared and how much time it took to clear all 4

## Manish said

Yes sir n congratulation priyanka just few days left for my rpeb exams I ”ll let u know guys.

## Roopa Soni said

Hello Sir,

I am a B.Sc MBA(fin)(Distance learning from symbiosis).

Enroll with FPSB.

Have cleared insurance module only six month ago in self study.

Want to clear rest of the modules also.

Kindly guide, do I need to take coaching, if yes, kindly suggest.I am based in mumbai.

If no, how should I go about with the rest of the modules.

Your advise will be precious for me as am in a fix.

Warm regards,

Roopa

## Prashant Shah said

Dear Roopa,

I have no idea about the coaching claseses in Mumbai but still suggest that coching is necessary as you not only clear the exams but at the same time you learn the subject. And at all the times I am there to support everyone.

Regards,

Prashant V Shah.

## Roopa Soni said

Dear Sir,

Thanks a ton.

Warm regards,

Roopa

## sadshiv kashyap said

you can join financial planning academy and you can also check education provider list iijt also best but they teach trough v set .roopa

## Roopa Soni said

Hi Sadshiv,

Thanks

What is the full form of iijt?

## Jimit Shah said

its a knowledge oriented site…..i regret it why i dint got to know about this site before….i tried giving my retirement module twice but dint cleared…anyway now i am planning to give tax module and making use of this site…

thanks

## Prashant Shah said

Dear Jimit,

Thanks for appreciation.

Prashant V Shah.

## Vilas Lambe said

I want to order this coins,how do I order.

## Prashant Shah said

Dear Vilas,

I have given link under the every coin booking post. Follow the link, register yourself and book the current issues.

Regards,

Prashant.

## JYOTI LOHANA said

Sir,i m appearing for final module on 28th.Please help me for postal savings rate scheme specially ppf.how should i calculate the interest rate.as there in change 8 to 8.6 and now 8.8

## Prashant Shah said

Dear Jyoti,

I have already posted the new rates on this site. Rates declared on 1st April, 2012 are not applicable in our current exams. Hence consider the rates declared on 1st December 2011 as applicable for all the FPSB exams.

Best luck and regards,

Prashant V Shah.

## JYOTI LOHANA said

thanks a lot.I have a query in ravindra case study.why there is a surcharge applicable in calculating the tax liability.ravindra question1.Please quide me.

Thanks,

jyoti

## Vinayak said

Dear Jyoti,

During that relevant assessment year, as per the tax rates, surcharge was applicable @10% if taxable income exceeded Rs.10,00,000 /- . For AY 12-13, surcharge is not applicable.

Vinayak

## JYOTI LOHANA said

Sir,

thanks a lot……..

## JYOTI LOHANA said

Hello Sir,

I want to know about ppf interest rate.in exam i should calclate interest rate 8.6% from dec 2011 & till dec 8.0%,or from begining 8.6%.

i m confuse about that.please help me.

## Prashant Shah said

Dear Jyoti,

For investment made within a period which is from 1st April,2011 to 30th November,2011 the applicable rate is 8%. And for innvestments made after 1st December,2011, it is 8.6% for our examination.

Investment limit has also been increased from 70000 to 100000 from 1st December,2011.

For the cases like,

Invested maximum amount on 1st April 2011 and invested additional 30000 on 1st December, the above calculation should be applied. I.e. 8% interest to be calculated on 70000 for 8 months and 8.6% to be applied on 100000 for 4 months.

Nowadays such questions are asked in exam.

Vinayak did you have any similar kind of question in your exam?

Regards,

Prashant.

## Vinayak said

Dear Prashant,

Surprisingly, I did not have any questions on PPF in my exam. I had really prepared well for the PPF questions and expected at least one five marker.

Best regards

Vinayak

## JYOTI LOHANA said

thanks a lot.just two days remaining in my exam.

## JYOTI LOHANA said

i have cleared final module of cfp.Thanks to Vinayak & Prashant for their help & support.

## Roopa Soni said

Congo!!!!….Can u share which type of questions they asked?

## Chetan Desai said

Jyoti first of All Congratulation.

Can u help me with Which case-study was there?

how many 5,4,3 and 2 Marker Questions were there?

and can u share which type of Question they Ask in Exam.

## JYOTI LOHANA said

they have mostly asked corpus required through monthly or yearly investment,in my paper no question of ppf or any postal scheme.u should focus on capital gains,income from house propert & loan amortization.also asked FMP related questions.

## Chetan Desai said

btw which case study was there in ur Exam and what is the Difficulty level of 5 and 4 Marker Question

## Manish said

Dear sir today I cleared insurance module n I would like to thanks vinak n u.

## Vinayak said

Manish,

Congratulations on clearing the Insurance module.

Vinayak

## Manish said

Thanks

## Sandhya Trivedi said

Dear Prashant,

It is a great work that you are doing here and would like to sincerely thank you. I am giving my final AFP exam on 10th Sept. 2012. I have Aug 09-Devendra case study but I dont have the answers for the same. Do you have them with you. I was unable to find it out on your blog archives.

## Manish said

Dear sandhya is it devendra or devnarayan?

## Manish said

Dear sandhya r u talking abt devendra or devnarayan?

## Sandhya Trivedi said

Dear Manish,

Sorry for the late reply I am talking about the Devendra and Dharampal case

## manish said

dear sandhya u can find ur case study of devendra and dharampal on this both link http://www.ljbs.in/docs/Exam5_CaseStudy_2009.pdf and http://www.scribd.com/doc/83615329/Exam5-CaseStudy-2009 one more think which i would like to tell u according to my info there will be 2 case studies which will definetly will be asked if u give the exam as soon as possible and tht cases might be among these 1.]roger 2010,2.]mrs.urvashi solanki 2010,3.]ashwin agarwal 2011,

4.]gurpreet das 2011,5.]ms.sahanubhuti vanaspati,2011,6.]sachin dev 2011,7.]mahesh and neelam 2011,8.]sanjay 2011.these cases might be asked but plz dont follow my advice i m just giving u the info itz better to do all the case studies practise rather than relying on this.

regards,

manish

## manish said

dear sandhya u can find ur case study of devendra and dharampal on this both link http://www.ljbs.in/docs/Exam5_CaseStudy_2009.pdf and http://www.scribd.com/doc/83615329/Exam5-CaseStudy-2009 one more think which i would like to tell u according to my info there will be 2 case studies which will definetly will be asked if u give the exam as soon as possible and tht cases might be among these 1.]roger 2010,2.]mrs.urvashi solanki 2010,3.]ashwin agarwal 2011,

4.]gurpreet das 2011,5.]ms.sahanubhuti vanaspati,2011,6.]sachin dev 2011,7.]mahesh and neelam 2011,8.]sanjay 2011.these cases might be asked but plz dont follow my advice i m just giving u the info itz better to do all the case studies practise rather than relying on this.

manish

## manish said

Dear sandhya u can find these case studies on this link http://www.ljbs.in/docs/Exam5_CaseStudy_2009.pdf and one more think which i would like to tell u according to my info there will be 2 case studies which will definetly will be asked if u give the exam as soon as possible and tht cases might be among these 1.]roger 2010,2.]mrs.urvashi solanki 2010,3.]ashwin agarwal 2011,4.]gurpreet das 2011,5.]ms.sahanubhuti vanaspati,2011,6.]sachin dev 2011,7.]mahesh and neelam 2011,8.]sanjay 2011.these cases might be asked but plz dont follow my advice i m just giving u the info itz better to do all the case studies practise rather than relying on this.

manish

## Mohan said

Hi Manish im appearing Risk insurance module this month I would like to know advice for clearing this module Im gladful any suggestions from your end.

## Prashant Shah said

Hi Mohan,

Those who have appeared in this exam have suggested that similar questions have been asked which are posted on this site. Sample paper and additional sample paper are equally important.

General insurance is slightly at risk. But getting through is not tough.

There is 20% weight of IFP. Its a great cushion.

Regards,

Prashant

## Sandhya Trivedi said

thanks Manish,

But can i get questions for the 2011 cases. or I will have to just work out ques on probability basis.

one more query – can 80C deduction be claimed for investment in NSC in minor child’s name

## Vinayak said

Dear Sandhya,

The facts are like these: FPSB India has uploaded 6 cases on their website currently which are 1. Ashwin Agarwal 2. Mahesh and Neelam Desai 3. Sahanubhuti Vanaspati 4. Gurpreet Das 5. Sanjay and 6. Sachin Dev. For your AFP exam , you will be given any two of these cases and questions will be asked on these cases. There are no questions available for these cases since these are current cases for the exam. For practice, you should rely on the cases of 2009 and 2010 which are available alongwith the solutions in this blog and elsewhere. Practice these properly and understand the concepts thoroughly. You will then be in a position to tackle any question. Lay stress on corpus calculations, capital gains , gold etf, portfolio rebalancing etc.

All the Best

Regards

Vinayak

## Sandhya Trivedi said

thanks Vinayak. I am having my exam on 10th Sept. I have already done around 20 cases. However, I always end up making some mistakes (either silly mistakes or concept is new). this is especially true in corpus based ques. so i am not getting the confidence yet. As time is short should I focus on doing more and more case studies or should spend time on brushing up my basics from previous modules.

## Vinayak said

Dear Sandhya,

Please don’t get hassled. Everybody makes some silly mistakes ( especially true in corpus calculations). The trick is to be very alert and vigilant whille solving these as a small mistake somewhere will derail you. So concentrate fully and have confidence in yourself. As far as concepts are concerned, if your TVM concepts are clear then there is no problem. I will advise you to revise the case studies of sep, oct, nov and dec of 2009 and all cases of 2010 ( jan to april) thoroughly. Just focus on these and on capital gains ( res prop and buy back of shares), gold etf. ppf and portfolio rebalancing.

All the Best.

Vinayak

## Manish Jhamtani said

dear sandhya u can get the questions in these links or in this blog and regarding 80c deduction there is a lot of confusion and rebate going around but i m getting the mixed response letz see wht prashant sir says abt this.

regards,

manish

## Manish said

dear sandhya u can get the questions in these links or in this blog and regarding 80c deduction in minor child’s name i m also having the same query bcoz i m getting the mixed response letz see wht prashant sir says abt this?

## Sandhya Trivedi said

Dear Vinayak/Manish/Prashant,

I am writing my final exam on Monday. I have few quick questions and would be great if you could help me out on this:

• Is surrender of ulip taxable

• Any limit on topup on ulip schemes

• PPF-differential rates applicable

• How many investments PPF – yrly & mthly

• Finally can you pl teach me with an example of PPF showing (it’s really confusing):

1. Yr of maturity

2. Year when loan allowed and max amt

3. Year when withdrawal is allowed and max amt

Please help me out on this. Thanks a ton in advance.

## Vinayak said

Dear Sandhya,

I will try to address as many questions of yours as follows:

1. Top up premium is usually limited to 25% of the premiums paid.

2. Rates of PPF are as declared by the Govt. The interest is calculated on monthly basis. For example the rate was 8.6% from 01 Dec 2011 to 31.03.2012. From

01.04.2012, it has been revised to 8.8%.

3. The investments in PPF are limited to max 12 instalments in a year. The max amount per year is currently Rs.1,00,000.

4. Example of PPF:

Let’s assume account is opened on 30 march 2001 with Rs. 50000 and lets assume the following balances:

31 March 2001: 50000 ( FY 00-01)

31 March 2002: 75000 ( FY 01-02)

31 march 2003:100000 ( FY 02-03)

31 march 2004: 125000 ( FY 03-04)

31 March 2005: 150000 ( FY 04-05)

31 March 2006: 175000 ( FY 05-06)

31 March 2007: 200000 ( FY 07-08) etc.

Now, the maturity of this PPF account is 01 April 2016. Remember that you can have 16 yearly instalments till maturity.

Loan is allowed from the third financial year onwards i.e. from 01 April 2002. The amount of loan is 25% of the amount outstanding at the end of the second preceding year. In this case, the amount is 25% of Rs.50,000.

Withdrawal is allowed from seventh financial year onwards i.e. from 01 April 2007. Max amount is 50% of amount outstanding at the end of the preceding year or end of the fourth preceding year, whichever is less. In this case, the max loan amount is lesser of 50% of 175000( 31 March 2006) or 50% of 100000 ( 31 March 2003) i.e Rs. 50000.

All the best.

Vinayak

## Sandhya Trivedi said

Thanks a ton Vinayak for your prompt reply. Just one more querry – in case of PPF – there is limit for max no of monthly investments allowed as well. Could please confirm that

## Vinayak said

Dear Sandhya,

Max instalments are 12 in a year. You can make more than one instalment in a month also but total number of instalments in a year should not exceed 12.

Vinayak

## Prashant Shah said

ULIP policies have new rules now which say that top-up without increase in sum assured is not allowed. Older policies can still accept the top-up to the extent of 25% of the premium paid without increasing sum assured. The maximum chares which can be levied have also changed for new policies. Probably thats the reason why FPSB is not asking question of Ulip in final exam any more.

Regards,

Prashant.

## nayan luhana said

Dear Sandhya

Can you please tell me which 2 case studies was there and mostly which type of question was there?

## sandhya said

I got the first two cases. Ashwin agarwal n gurpreet das. the pattern of the questions in both the cases were.more or less the same.

there were 3 corpus based questions for each case one on retirement and two on marriage. surprisingly nothing on education.

one question each on Ppf. the second Ppf question was tricky. they had given different rates and also enhancing the investment to the new investment limit in the month of Jan 2011. such question needs a little patience.

focus on capital gain tax rates. there was a question on buyback of shares after rights bonus and split of shares.

read the theory questions of all the previous cases. few repeat so u can easily score two marks in that. read the code of ethics thoroughly.

there was one question for home loans. it gave the breakup for disbursements of installments by the bank. instead of asking the final emi it asked the sec 24b and sec 80c deduction. seemed tricky but there was no need of any calculation. the construction has got completed in that yr only so there will no deduction allowed under sec 24. there was only one option will nil for sec 24 deduction. so u get 5 marks without any calculation.

just look out tricky ones like these. also as vinayak has mentioned in the previous posts, I focused only on cases from Sep 09 to Apr 10.

just understand the logic right and you will be able to tackle any question.

best of luck and if I remember anything else will let u know.

## nayan luhana said

Dear Sandhya

Thanks for the reply and one more thing if you remember any thing more please inform me and once again thanks for the help.

## sandhya said

hi all,

thanks a lot for ur replies. I have successfully cleared the final module. I had loads of help from this site and I would not have cleared it without all of your inputs.

## Prashant Shah said

Dear Sandhya,

Congratulations for the success…

Your all the thanks rather go to Vinayak who has been guiding you through out.

Remain associated with the site and lets togather help others who look for support for education.

All the best.

Prashant V Shah.

## Manish said

Dear sandhya congratulations keep visiting this site and help the readers with their queries

## Vinayak said

Dear Sandhya,

Congratulations on successfully clearing the final module.

All the best.

Vinayak

## nayanluhana said

Hello Vinayak can u please help me to solve one of question of AFP case study and show me the method. Question details are as folliow:

Sample paper 1 Urvashi case study question no 22(Of NSC) or In 2010 past case study page no 76 question no 22( of NSC) Hope you will help me soon.

## nayanluhana said

Hello vinayak i want to know that in AFP exam that the question pattern of old case study will be same in exam or not?

## nayanluhana said

Hey vinayak please reply my question as i am going to give AFP exam soon so i request you to help me and reply me

## nayanluhana said

Hello sandhya i want to know that in AFP exam that the question pattern of old case study will be same in exam or not?

## nayanluhana said

Hello sir can u please help me to solve one of question of AFP case study and show me the method. Question details are as folliow:

Sample paper 1 Urvashi case study question no 22(Of NSC) or In 2010 past case study page no 76 question no 22( of NSC) Hope you will help me soon.

## Naman J. Luhana said

Sir, I cleared Tax Planning Module with A Grade. Thanks a lot sir it was not possible without your guidance.

## Abhilash said

Hello Naman,

Even I found this site very helpful.

I’m giving my Tax Planning Module on 5th Dec. So is it possible for you to mail me some question papers of Tax Planning Module?

Also is there any way to contact you. I need to ask you for some clarification. Hope U’ll help me.

Thanks in advance.

## Naman J. Luhana said

Dear Abhilash,

My e-mail id is

## Darshan said

Hi Naman,

Can u share some questions which came in your tax planning exam it will be a good help from you. I am about to give this exam

Thanks

## Abhilash said

Dear Prashant Sir,

Thanks for developing the site for aspiring CFPs like me. It is really very helpful.

I request you to kindly upload the contents and practice questions on SET OFF & CARRY FORWARD OF LOSSES and WEALTH PLANNING.

There are many 1 & 2 marks questions that comes on Wealth planning and Estate planning.

## Sudhakar said

Good Eve to all i am Sudhakar i can to know about this blog a week before only,i will tell u one thing “you are doing a great job” Knowledge is power and that will increase when we start to share with others.

## Sudhakar said

I am preparing for my final module and planned to take the exam by December

## Nayan Luhana said

Hello Sudhakar i have recently given the final module exam but i couldn’t clear it so i would like to give u advice to focus on TVM more and please reply me about your exam result

## sudhakar said

Hi Nayan, its my pleasure to share, can i know which to cases you got and the type of questions they asked.My mail id:

## Nayan Luhana said

Sundhakar the First case sudy was-Sahanubhuti and Second case study was-Mahesh desai. Question mostly was there on tvm but tricky. Please don’t do practice in excel but practice in open office spreadsheet. one of the reason was this also that i have done practice in excel so it was difficult for me to use open office so please do more practice on open office spreadsheet for tvm some.

## sudhakar said

Hi

Happy new year

I have cleared my final module exam on 4th Jan (fri) i like to share my views form the exam point.

cases i got Gurpreet Das & Sahanubhuti Vanaspati.

Case Gurpreet Das (easy questions 2,3 marks came from what we discussed and form IIFP workbook.)

i got a theory ques in 3 mark from reverse mortgage with confusing ans options & 4marks was a simple sip cal and other was a cal of tax adjusted internal rate of return by giving 10% rate nominal com quater inflation given for 500 days bonds (for whole period mentioned)given in the middle of the ques thinking most of us will take the infla as it is and end up with wrong ans which is there in the ans options.

5marks

1 st was a reallocation in equity 40% MF 40% debt 20% easy sum sure marks not to be missed

2 nd in retirement corpus finding short fall or surplus (easy)

3 rd in taxation finding deductions under sec 24 and 80C.

4 th in clubbing marriage and higher edu find the sip till a particular age.

over all its a easy case to score marks.

case 2 Sahanubhuti Vanaspati.

2,3 marks were little confusing from options, jensen alpha tricky ethics ques read the question twice and then answer

4 mark

1st in life insurance cover with factoring all exp on education , marriage and loans. (sample 2 last que format)

2 nd sale of gold jwellery and gold etf and find the tax liability. with and without indexation which ever less.

5 marks (tough in the way he asks the questions)

question format was what we have worked but he adds some more info and ans options we very close

eg: fund for retirement corpus from today till retirement.

the que is vanaspati want 60000 p.m of exp post retire infla adu and want to fund for charity 1cr at the age 70yrs and 1cr bequeath posthumously. for this he want to fund starting from today till retirement through

debt invest 12000 amt till retirement

use PPF with further inv after maturity inv in liquid

use the present Equity MF amt and the sip he is continuing

What is the SIP he need to top up to bridge the gap of retirement value corpus at retirement starting immediately.

2 nd ques was like accumulation/switch the same pattern as in sample two question

3 was a tax ques finding the tax liability the ques was too length with lot of info very confusy left it.

over all case 2 was a stress buster first case i finished in 1 hr 40 min second case 2 hrs 10 min was not enough.

Regards

Sudhakar.

## manish said

Dear prashant sir today i attempted tax exam u dont believe tht but i got 83 marks fall short of 1 mark it really hurts bcoz i was just too close to my destiny.the reason for failure is that i choose open office instead of financial calculator the paper was quite tricky but it is tolerable the only area where i fell down down is bcoz of slow speed which was caused by open office error dialog box tht easily takes away my precious time.would like to hear ur advice regarding this.

## Prashant Shah said

Dear Manish,

It is really unfotunate to score 83 marks. In 2012 I have seen many students scoring the same. I dont know the reason behind. I have not said on the site but it is not advisable to use open office for basic modules. Financial calculator is always a better idea. Now be prepared to score A grade and i believe that you destined for that. All the best.

Regards,

Prashant.

## manish said

Dear prashant sir thanks for ur encouraging words this will definetly boost me up now i will do more practise with the help of a calculator n i surely try my best to score A grade thank u again.

## Vinayak said

I agree with Prashant sir. I can tell you from personal experience that its always better to use financial calculator as much as possible in the exams. Its quick and efficient. Use excel/open office only for those problems which cannot be solved by calculator like XIRR, ULIP calculations etc.

Regards

Vinayak

## khushbu said

i need help for taking ma fst xam of risk analysis insurance planning can u plz avail me wid any sampl pprz..

## Prashant Shah said

Dear Khushbu,

I presume that you have thoroughly read the the text book. You can download the FPA bank from scribd.com.

Regards,

Prashant V Shah.

## khushbu said

plz reply soon i hv xam on 17

## khushbu said

i cud’t clear ma 1st xam scored 82 i reda ma course buk 3 tyms plz suggest smthing m feelin sooo low…:(

## Manish said

Dear khusboo it is really unfortunate recently the same incident happens to me in tax planning i got 83 marks but after that within a week i rewrite the exam again n i got b grade bcoz i know that the reason for my failure is that i choose open office over financial calculator.it is very important to identify ur mistakes and work on it and don’t loose hope.mistakes can be priceless in the long run if we are willing to learn from them all the best.

## khushbu said

i wish i hv come onlyn yestrday da sampl ppr which m seeing now hs same ques as i had today..i think material is nt suficient coz many ques nd topics as well wr new…..

## Manish said

Dear khusboo ur first priority before attempting any exam is to make sure ur concepts r very clear regarding various topics and the second one is to do practise from various sample papers that is why questions are equally important as content.As u already read the book for 3 times i suggest u to download the latest book from this site which prashant sir has uploded recently for us.u might find various topics which can be helpful for u.

## khushbu said

can u plzzzz tel me how to do dat coz i donot knw much abt blog or site…:-(

## Manish said

Dear khushbu u can download the book from this link prashantvshah.wordpress.com/2012/09/21/book-for-insurance-planning-cfp/.you can find the other imp content from this site just click on the cfp link from the “welcome” post.

## khushbu said

u knw wt munish g thnx a lot i wish i wud hv com earlier to dis pg.

n do u hv id on gmail coz i realy need to knw lot many thins abt xam..plz leave ur id if u hv on gmail.

## Manish said

Dear khusbu i dont mind to give u the same but prashant sir has already said to make this platform interactive therefore he strickly said not to leave any email id so for that u need to get the permission from him.however u can ask any questions here freely from anyone.

## khushbu said

ammmm…ok..nt an issue..actly m nt so lrnd kinda prsn hvin lest knwledge so ws feelin akwrd..bt now i’l ask…

u knw wt m unabl to download any of link specily of risk nd insurance..i got only 40 ques of raip…frm scribd

## khushbu said

kumar sir ..r saying this to me…??if yess..thn plzzzzz plzzz plzz fowd notes to me i realy need dt..i’l realy thnkful to u…

## Prashant Shah said

Request all to not to ask and provide mail address of or to anyone. If you have any material to share, you can paste in comments

Solving doubts and helping them to clear concepts is a better help.

Regards,

Prashant V Shah.

## sudhakar said

Hi Sir,

Happy new year

I have cleared my final module exam on 4th Jan (fri) i like to share my views form the exam point.

cases i got Gurpreet Das & Sahanubhuti Vanaspati.

Case Gurpreet Das (easy questions 2,3 marks came from what i have seen in cases provided here and my work book.)

i got a theory ques in 3 mark from reverse mortgage with confusing ans options & 4marks was a simple sip cal and other was a cal of tax adjusted internal rate of return by giving 10% rate nominal com quater inflation given for 500 days bonds (for whole period mentioned)given in the middle of the ques thinking most of us will take the infla as it is and end up with wrong ans which is there in the ans options.

5marks

1 st was a reallocation in equity 40% MF 40% debt 20% easy sum sure marks not to be missed

2 nd in retirement corpus finding short fall or surplus (easy)

3 rd in taxation finding deductions under sec 24 and 80C.

4 th in clubbing marriage and higher edu find the sip till a particular age.

over all its a easy case to score marks.

case 2 Sahanubhuti Vanaspati.

2,3 marks were little confusing from options, jensen alpha tricky ethics ques read the question twice and then answer

4 mark

1st in life insurance cover with factoring all exp on education , marriage and loans. (fpsb sample 2 last ques format)

2 nd sale of gold jewellery and gold etf and find the tax liability. with and without indexation which ever less.

5 marks (tough in the way he asks the questions)

question format was what we have worked but he adds some more info and ans options we very close

eg: fund for retirement corpus from today till retirement.

the que is vanaspati want 60000 p.m of exp post retire infla adu and want to fund for charity 1cr at the age 70yrs and 1cr bequeath posthumously. for this he want to fund starting from today till retirement through

debt invest 12000 amt till retirement

use PPF with further inv after maturity inv in liquid

use the present Equity MF amt and the sip he is continuing

What is the SIP he need to top up to bridge the gap of retirement value corpus at retirement starting immediately.

2 nd ques was like accumulation/switch the same pattern as in fpsb sample two question

3 was a tax ques finding the tax liability the ques was too length with lot of info very confusy left it.

over all case 2 was a stress buster first case i finished in 1 hr 40 min second case 2 hrs 10 min was not enough.

Prashant Sir thanks for Ur support through this blog.

Regards

Sudhakar.

## Prashant Shah said

Dear Sudhakar,

Congratulations!.

Thanks for the input, it will help many.

Regards,

Prashant.

## Abhilash said

Gave my tax planning exam and I failed once again. Got 81 only 😦

Don’t know what to do now. What else should I study to clear 1 & 2 marks questions…??

## kumar nirmal prasad said

important topics

capital gains (Most important)

income from house property

calculation of house rent allowance

residential status

dedution under section 80 c to 80 g

estate planning deep study required

CFP code of ethics

atleast 20% question from introduction to financial planning, insurance planning

annuities related questions – time value of money

## Manish said

Dear prashant sir as cfp curriculum is going to change from 1st feb i want to ask tht the further material will be same or will it be entirely different from existing mandar book and does fpsb had released such books?

## Prashant Shah said

Dear Manish,

Yes the course is changing from 1st february but the content on the site are in line the new course.

According to me the exam pattern is changing but the content of the curriculum is almost same as we have now.

And yes unfortunately FPSB has never published any study material.

Regards,

Prashant.

## R Varadarajan said

Dear Prashant,

As i had posted elsewhere I had cleared the Tax Planning paper which I took up first, on the 11th with B grade.In fact two or three were from the question bank in your block- without any change. Thanks for your guidance and your effort to strengthen the CFPs in the country.

Now I am planning to take up Investment planning before the end of the month. I have prepared and is preparing for the same. Please could I have some guidance. Incidentally, I got two questions on Liquid Asset Ratio of Individuals with the data on their Bank Deposits, MF, House, Annual Expenses and EMIs on Car/Home Loans. Please could you throw some light on these. Thanks.

R Varadarajan

## Manish said

Dear R Varadarajan liquid asset ratio or basic liquidity ratio are very important in tracking the liquidity enjoyed by the client.letz assume u have the following liquid assets & monthly expenses:-

Liquid assets:

1.]cash on hand -10000

2.]bank deposits-6000

3.]money market mutual fund-20000

total Liquid assets-36000

Annual exps

1.]interest expense-5000

2.]real estate taxes-6000

3.]living exp-59000

total annual exps-70000

monthly exps-5833.

liquid asset ratio=liquid assets/monthly expenses

=36000/5833=6.17

6.17 is the number which indicates the number of months their Liquid assets could support the client.a target of 3-4 would seem to be reasonable.

## R Varadarajan said

Thanks Manish for your clarifications. I did not know this calculation at all.although I have an idea of the liquid assets. Had I known this I could have got 6 more marks, as these problems are simple.Perhaps, those appearing for the TP paper should note this!!

## R Varadarajan said

Dear Prashant/ Manish, Can you please help me to solve the following problems.

1.ABC Ltd earnings for the previous year Rs.45 per share Its return on equity 20% & retains 50% of the earnings( both figures are expected to be maintained indefenitely). Stocks of similar rist are prices to return 15%. What is the intrinsic value of ABC stock?

Answer ( a ) 566, ( b ) 495 ( c ) 580 & ( d ) 450.

2. Calculate the modified duration of a bond with FV Rs.- 100,Coupon Rate – 9%, Term to Maturity – 8 Yrs & Mkt Price – Rs.92

Answer : ( a ) 5.58 yrs ( b ) 4.12 Yrs ( c ) 3.78 Yrs & ( d ) 6.78 Yrs

Thanks

R Varadarajan

## Manish said

Dear R Varadarajan even i forgot the formula of finding this ratio so i would like to thank u for bringing up this question and u rightly said that one should note or be aware of these kinda topics before attempting any examz thats why fpsb has created the 1st module introduction to fp so that u can refer this book everytime regardless of how many times u have read it before.

## Manish said

Dear R varadarajan i m not sure about 1st one and in second one my answer comes to 7.23 yrs after calculating the ytm of 10.53% we need to confirm this from prashant sir as i m also preparing investment so i also need a guidance along with u.

## R Varadarajan said

Good to hear that you are also preparing for IP. In case you have any sample questions or tips please could you send them. we now require the guidance from Mr Prashant Shah for some of these questions.

## Vinayak said

Dear Varadarajan/Manish,

The solution to the first question is as follows:

First calculate growth rate ‘g’ = Return on equity * retention ratio = 20%*50% = 0.10

Now, return required = 15% = K

Dividend D1 = Earnings X ( 1+growth rate) X payout ratio = 45 *1.10*0.50 = 24.75

Use the formula to calculate the intrinsic value.

Intrinsic Value = D1/(K-g) = 24.75/0.05 = 495

Vinayak

## Prashant Shah said

Dear Vinayak,

Nice to see you after a long time.

Thanks for the help.

Prashant.

## Manish said

Dear r varadarajan sorry in question no :-2 first we need to calculate the maculay duration by taking the yield of 10.53% maculay duration comes to 5.94 yrs after that calculate the modified duration with the help of formula modified duration=maculay duration/(1+ytm/f)=5.38.you can grab this formulas and tips from investment planning section.

## Manish said

Dear vinayak thank u so much for the solution.

## Prashant Shah said

Dear Manish,

Ans is Absolutely prefect.

Some students have said that current exams of IP have questions on duration and modified duration.

I will publish a post on the said topics soon.

Thanks,

Prashant.

## Manish said

Dear prashant sir thanks for the updates we will wait for ur upcoming post on the said topics.

## R Varadarajan said

Thanks Vinay for your advice. I am looking forward to Mr Prashan’t post on the calculation of Mecaulay’s Duration & Modified Duration. I am still not clear on the concept in the calculation of Duration.. Thanks

R Varadarajan

## mini said

hii… can anybody tell me .

ulip question comes in cfp last module

## Prashant Shah said

Dear Mini,

You can refer to december 2009 case study.

Regards,

Prashant V Shah.

## mini said

thanks for your reply

i got to know about your website yesterday …

i already cleared my all 4 modules and i m preparing for last module…

can you tell me how to solve Q no 7 & 10 in urvashi case study….

## Sivaram Iyer said

Hi Sir, i am pursuing my mba and had enrolled for CFP in 2010, but couldn’t give any exam. Now am thinking to clear all the modules. Please can you let me know how the syllabus has changed in past few years (have notes of 2010). Am thinking to give Retirement Planning 1st. Also have heard after completion of MBA i can directly give the final module ( have 3.3yrs of work exp in investment bank). Please let me know how to approach in clearing the CFP exams.

Many Thanks.

## Sivaram Iyer said

*I mean how much the syllabus has changed in past two years and for notes, if i refer to older one is that fine. Can you suggest any notes that i can refer.

## Nilesh said

Dear Prashant / Members,

I’ve following query. I’m not getting the logic how they have arrived to the solution.

Mr. Rajans investment portfolio comprises Rs.2 lakh in equity, Rs.5 lakh in debt and Rs. 1 lakh in his bank current account.

Over one year the returns on equity and debt are 5% and 12%. At the end of the year to maintain his current asset

allocation, he needs to ________

Ans. He needs move Rs.7500/- to equity from debt and Rs. 8750/-to cash from debt

Awaiting for your eariest response.

Regards

Nilesh

## Prashant Shah said

Dear Nilesh,

You may get the solution soon.

Request you to not to post you mail address for any futher queries.

Regards,

Prashant V Shah.

## R Varadarajan said

Hi Nilesh, here is the solution. The concept is that the intial asset allocation ratio should be maintained after one year

Opg Amount Percentage Return Closing Bal Amount Reqd Amount s

After Return for same % to be Trfd

Equity 200000 25% 5% 210000 (25%) 217500 + 7500

Debt 500000 62.5% 12% 560000 ( 62.5%) 543750 – 16250

Bank C. A 100000 12.5% 0 100000 ( 12.5%) 108750 + 8750

Total 800000 100.% 870000 870000

Since Bank Current account does not receive any interest the closing balance would be the same as the opening balance. With the total amount of 870000 ( as against 800000 in the beginning of the year), the distribution in the same pecentage (25%, 62.5% &12.5%) would result in adjustment of the balances in these asset class. Hence Rs.16250 would be taken out of debt and transferred to Equity ( 7500) and Debt ( 8750)

Trust this clarifies the position.

R Varadarajan

## R Varadarajan said

It appears that the columns are not displayed correctly. Hence I am giving the details again

Equity of Rs.2.00 Lakhs form 25% of total amount of 8.00 Lakh. After one year with the return of 5% it would be 200000+10000 = 210000

Similarly Debt of 5.00 Lakhs is 62.5% of 8 lakhs. After one year with the return of 12% , it would be

500000+60000 = 560000.

The current account bal of Rs.1.00 Lakh forms 12.5% of 8.00 Lakh, and would remain the same as the Bank current account does not get any interst. ( in fact there would be service charges, which is ignored)

After one year, the total would be 870000( 210000+560000+100000). To maintain the same percentage of 25%,62.5%& 12.5%, the amount in these heads should be 217500, 543750 &108750. To acheive this, he has to transfer Rs.16250 fro Debt fund to Equity ( 7500 ) and Current a/c ( 8750 ).

## khushbu kaushal said

hello sir i gave IP 2 tyms bt cudnt clear xam again m preparing n going to appear on 11feb bt now patrn hs changd i saw da sample papr dt seamd hard specialy da numericals dt seemd different from doses i prepared plz guid me

## vinay said

Hi

just found this site and indeed it is very educative. I have cleared the module-2 of CFP- risk analysis and insurance and now started studying retirement planning and employee benefits. Any good reference books for the subject apart from the study material of my education provider? I am in self-study mode.

## Roopa Soni said

Dear Prashant Sir,

Request you to advice on tax and estate planning changes applicable for AY 2013-14.

Regards,

## Geeta said

Hi Prashant Sir,

FPSB has changed the paper pattern from 1st Feb. I need to give my Retirement paper. Can u pls advice as to the topics that I should focus on and how different will the syllabus be when compared with the earlier one. Hv gone thru the sample pattern but wud appreciate if you could explain in detail pls.

Thnx

Geeta

## Prashant Shah said

Dear Geeta,

As far as the retirement planning portion concerned there is no change except introduction of reverse mortgage in curriculum.

In employee benefit part there was a change in EDLI, which is already updated on site.

Sample paper on RPEB is also available on site.

The difference which we may observe will be in terms of coverage. We may expect FPSB to cover 75% to 80% of stated curriculum to be in the exam. Hence only TVM may not rescue in the exam (my expectation).

Other than these there is no great change.

Regards,

Prashant V Shah.

## R Varadarajan said

Dear Prashantji,

Thanks for the clarification on the curriculum. Please could you give us a brief on the ” Reverse Mortgage” which is being included and also one or two sample probles with workings to enable us understand the concept fully. I will also be appearing for the RPEB exams in February and your guidance is gratefully awaited.

Thanks

R Varadarajan

## R Varadarajan said

Dear Geeta,

I recently appeared for the RPEB exam in after the revision and missed the same by a whisker ( scored 86 against the requirement of 90). There will be 77 questions with total marks of 150 ( instead of 75 questions and 140 marks). There are 1,2 3 & 4 marks questions as outlined in the sample paper. The most important thing is that all the 4 marks questions and some of the 3 marks questions are extremely tough and you should be thorough and also very fast, since these would take much longer time in view of the mumerous calculations involved. I used the calculator without realsing the gravity of the situation. But I think that if you are conversant with the open office and use that in the Open Office the process of calculation and rechecking/correction would be easier to save time. Best of Luck

## khushbu said

hello sir

sir as we hv numericals of belth method and tabular premium in riskand insurance will des also com in chanded ptrn?? plz guide

## khushbu kaushal said

Sir can u plz tell me is keymans insurance taxable

And if v want reviv da policy we need to do special revival or odinaru revival

## sadashiv kashyap said

Dear khusbu,

keyman policy is taxable .

bt in all kind of policies except when recived under keyman insurance policy or such as policy is covered under sec. 80 dd(3) or policy issued after 01/04/2003 if the premium paid for any year exceed 20% of actual capital sum assured except on death ……now income tax has been change 20% from 10% bt i am not sure 10% will applicable on keyman policy.

plz do have a look this q also they might be ask in any 1 to 4 exam also

4. A perpetual bond of Rs.1000 is selling at Rs. 930. The coupon rate is 14.5% and the discounted rate is 15%. What’ll be the value of this bond and YTM?

a. Rs. 950 & 15%

b. Rs. 966.67 & 15.59%

c. Rs950 & 14.42%

d. Rs.900 & 13.5%

Solution B

Value of a perpetual bond = pmt / I = 145/15% = 966.67; YTM = 145/930 = 15.59%

Perpetual P.V. = Pmt /rate YTM= Pmt/ p.v

17. Given a) Personal consumption of goods & services = 150 Billion, B) Government expenditure = 70 billion C) Private sector fixed capital expenditure = 50 billion D) Export receipts = 75 billion E) Import expenditure = 80 billion. What will be the value of GDP?

a. 425 billion

b. 270 Billion

c. 295 billion

d. 265 billion

Solution : D

150+70+50+75-80 = 265 billion

21. Bond Face value Rs 1000 and coupon rate 8% with market rate is 10%. If the bond is perpetual the value of the bond is ______.

a. 800

b. 750

c. 1000

d. 1200

Solution A

Price = 80/10% = 800

77.The current yield of a bond, with coupon rate of 7.5% & market price of Rs.105

Is ___

a. 7.143%

b. 7.413%

c. 6.143%

d. Nil

Solution A

7.5 / 105 = 0.0714285 X 100 = 7.143

88. The current yield of a bond with coupon rate of 11.5% is 10.773%. How much

is the price of this bond.

a.. 100

b. 106.75

c. 107.76

d. Nil 11.5 / 10.773 = 1.06748 X 100 = 106.75

Solution B 79. Calculate the bonds price with face value of 100 & coupon rate of 11.5% maturing in 3 years, if the ytm is 9%.

a. 106

b. 106.3208

c. 100

d. 105

Solution B

Fv = 100, I = 9%, n = 3, pmt = 11.5, PV = 106.3208

14) Ajay and Bela Mahera have two children ages 5 and 7. The Mehera.s want to start

saving for their children.s education. Each child will spend 6 years at college and will

begin at age 18. College currently costs Rs. 20000 per year and is expected to increase at

6% per year. Assuming the Mahera.s can earn an annual compound return of 12% and

inflation is 4%, how much must the Mehera.s deposit at the end of each year to pay for

their children.s educational requirements until the youngest is out of school? Assume that

educational expenses are withdrawn at the beginning of each year and that the last deposit

will be made at the beginning of the last year of the younger child.s college education.

A Rs. 15230

B Rs. 14,989

C Rs. 12,386

D None of the above

Solution: Step 1) Calculate the Inflation adjusted present value of tuition expenses for

both children using Cash Mode: Inflation adjusted return = ((1.12/1.06)-1)*100 = 5.66

D.Editor x-

1: 0, 2: 0, 3: 0, 4: 0, 5: 0, 6: 0, 7: 0, 8: 0, 9: 0, 10: 0, 11: 0, 12: 20000, 13: 20000, 14:

40000, 15: 40000, 16: 40000, 17: 40000, 18: 20000, 19: 200000.

NPV = 108657.86

Step 2) So the present value of the education is 108657.86. The sum of money needed to

be invested at end of each year until the youngest child is out of school:

End Mode: PV = 108657.86, I = 12, N = 18, PMT = -14989

5) Vinita was recently divorced and has two children. The divorce decree requires that

she pay 1/3 of the college tuition cost for her children. The tuition cost is currently Rs.

15,000 per year and has been increasing at 7% per year. Her son and daughter are 12 and

16 respectively and will attend college for four years beginning at age 18. How much

should she save each month, beginning today for the next five years to finance education

for both the children (in nearest rupee)? Assume that her after-tax rate of return will be

9% and that general inflation has been 4% p.a.

A) Rs. 750

B) Rs. 745

C) Rs. 2,235

D) Rs. 2,500

Solution: Step 1) Tuition Cost for each child for Vinita = Rs 5000.

Calculate the Inflation adjusted present value of tuition expenses for both children using

Cash Mode: Inflation adjusted = ((1.9/1.07)-1)*100 = 1.869

D.Editor x-

1: 0, 2: 0, 3: 5000, 4: 5000, 5: 5000, 6: 5000, 7: 5000, 8: 5000, 9: 5000, 10: 5000.

NPV = 36158.96027 because son 6 year collage will begin age 18 for four year so 6+4=10 for son +four year

Step 2) so the present value of the education cost is 36158.96. The sum of money needed

to be invested monthly in begin mode until the youngest child is out of school:

Begin Mode: PV = 36158.96027, I = 9/12, N = 5*12,

PMT = -745

10) A client purchased a zero coupon bond 6.5 years ago for Rs. 525. If the bond matures today and the face value is Rs. 1,000, what is the average annual compound rate of return (calculated semi-annually) that the client realised on her investments? – Marks : 4

10.40%

5.08%

11.34%

10.16%

Correct answer

## karan dixit said

sir ,in FPSB’S 5 CS CASE-A TO CASE-F,am facing problem to decide that in assets list insurance policies are also ..dn how will we calculate PV for NET WORTH questions.either we will consider it as SUM ASSURED OR VALUE ON THAT PARTICULAR DATE.PLZ Help me my exam is on 20 march 2013

## R Varadarajan said

With regard to the Networth calculation, we have to take only the either paid up or surrender value and not the Surrender Value in the case of endowment or ULIP Policies, based on the Premiums paid. In the case of Term Policy, they are actually Contingent Assets and cannot be included in the Asset at all

## Vishal said

Hi Prashant

I am preparing for exam 5, just wanted to know about the cases applicable (where do i see them, what freaquency do they change at,etc.) if i appear sometime in may-june 2013.

## Ronak said

Hi!

I’ve already cleared the first four modules but I’m finding it difficult to prepare for the fifth (advance FP) module. Do you have anymore case studies that would help? I’ve solved a few but not really confident to take the test anytime soon. Any tips to prepare for the final module??

## Shriharsha hp said

Hello sir, Now I am joining to CFP. How can i get experience in this field?

## Prashant Shah said

Dear Shriharsha,

I could not understand properly, can you please ask in detail.

Regards,

Prashant.

## ashutosh kuamr said

Sameer bought his house on 01/04/2007 for Rs. 35 lakh and took a housing loan from a bank for Rs.21.48 lakh at that time. He told you that he is planning to sell out his house at current market valuation and he would shift in Urvi’s house and invest the sales proceeds. Before doing that he wants to know the tax treatment of this transaction. According to you the same is ______.

solution as per fpsb

Loan amount 2148000

Purchase Price of the house= 3500000

Sell Price= 5000000

Short Term Capital Gain= 1500000

1 4598 PPMT(7.75%/12,1,18*12,-2148000,0)

2 4628 PPMT(7.75%/12,2,18*12,-2148000,0)

3 4658 PPMT(7.75%/12,3,18*12,-2148000,0)

4 4688 PPMT(7.75%/12,4,18*12,-2148000,0)

5 4718 PPMT(7.75%/12,5,18*12,-2148000,0)

6 4749 PPMT(7.75%/12,6,18*12,-2148000,0)

7 4779 PPMT(7.75%/12,7,18*12,-2148000,0)

8 4810 PPMT(7.75%/12,8,18*12,-2148000,0)

9 4841 PPMT(7.75%/12,9,18*12,-2148000,0)

10 4873 PPMT(7.75%/12,10,18*12,-2148000,0)

11 4904 PPMT(7.75%/12,11,18*12,-2148000,0)

Deduction availed u/s 80C for FY 2007-08 Total 52246

So Total Amount to be included in current year’s income= 1552246 1500000+52246

according to me;

opening intt. installment closing

01 2148000 13425 18473 2142952

02 2142952 13393 18473 2137872

03 2137872 13362 18473 2132761

04 2132761 13330 18473 2127618

05 2127618 13298 18473 2122443

06 2122443 13265 18473 2117235

07 2117235 13233 18473 2111995

08 2111995 13200 18473 2106721

09 2106721 13167 18473 2101415

10 2101415 13134 18473 2096076

11 2096076 13100 18473 2090704

12 2090704 13067 18473 2085298

158974 221676

During FY 2007-08, Sameer paid installments for full year. hence, he would have claimed Rs. 1.50 lacs (Max. permissible) towards interest payment of housing loan. Hence, he needs to add Rs. 1500000 + 150000 as short term capital gain if he sell property in Feb. 2009.

## ashutosh kuamr said

what is this PPMT & how it will give interest applied.

## Prashant Shah said

Dear Ashutosh,

PPMT is a function in Excel through which you can calculate principal component of each installment.

Regards,

Prashant

## ashutosh kuamr said

sir, whether sameer has not claimed income tax benefits on interest paid on housing loan? Is interest paid on loan has taken as expenses. if it is so… expenses of this year also need to be deducted from capital gain. let me clarify about treatment of interest expenses in case of short term capital gain.

## Prashant Shah said

Dear Ashutosh,

When interest is not claimed u/s 24. it can be claimed as expense while calculating capital gains. Indexation benefit is also available in that case.

Regards,

Prashant.

## ashutosh kuamr said

sir, question is not clear about whether sameer claimed the interest paid amount u/s 24 or not, but in normal course he must have claimed. Since, Sameer sold the property withing 3 years of purchase, i suppose, is liable to pay tax on what ever deduction he has taken u/s 24 and u/s 80 C, will be taken as income for current year and will be taxed.

## Prashant Shah said

Dear Ashutosh,

In the stated case there is a revocation u/s 80C but I will check and confirm whether there is any revocation u/s 24 or not.

Regards,

Prashant.

## ashutosh kuamr said

sir

Some time IRR formula in excell sheet give error….. what needs to be done… i also checked the solution given by FPSB. the cash accrual is same as that of mine..

## Prashant Shah said

Ensure that cash outflows are with negative sign and inflows are with positive sign.

You will get the answer.

Prashant.

## ashutosh kuamr said

Arka and Shamli started their PPF A/c. with Rs. 5,000 each on 3rd April 2006. On the first working day of every month they are depositing Rs. 5,000 from their respective bank accounts in their PPF Accounts. They have not updated their PPF Accounts Pass Book even for a single year. They ask you what the balance in their respective account could be as on 1st April 2009, as well as on the maturity of account, if they continue this investment upto the maximum permissible period in the same manner as they have been till now.

A) Rs. 2,03,225 and Rs. 18,98,300

B) Rs. 1,94,784 and Rs. 18,19,457

C) Rs. 2,03,225 and Rs. 16,99,722

D) Rs. 2,01,926 and Rs. 18,86,170

solution

A) Deposit Interest

Deposit

1-Apr-06 5000 33.33 5000*0.08/12

1-May-06 5000 66.67 10000*0.08/12

1-Jun-06 5000 100 15000*0.08/12

1-Jul-06 5000 133.33 20000*0.08/12

1-Aug-06 5000 166.67 25000*0.08/12

1-Sep-06 5000 200 30000*0.08/12

1-Oct-06 5000 233.33 35000*0.08/12

1-Nov-06 5000 266.67 40000*0.08/12

1-Dec-06 5000 300 45000*0.08/12

1-Jan-07 5000 333.33 50000*0.08/12

1-Feb-07 5000 366.67 55000*0.08/12

1-Mar-07 5000 400 60000*0.08/12

2600.00

62600.00 Balance on 1st April 2007

This activity of fresh contribution with residual interest will continue for 15 years until

matutity of the Account on 1st April, 2022.

For balance in each PPF A/c as on 1st April 2009 Alternatively,

nper 2 1st April 2008 130208 62600*1.08+62600

rate 0.08 1st April 2009 203225 130208*1.08+62600

pmt 62600.00 1st April 2010 282083

mode 0 1st April 2011 367249

pv 62600 1st April 2012 459229

1st April 2009 203,225 1st April 2013 558567

1st April 2014 665853

For balance in each PPF A/c as on 31st March 2022 1st April 2015 781721

nper 15 1st April 2016 906859

rate 0.08 1st April 2017 1042008

pmt 62600 1st April 2018 1187968

mode 0 1st April 2019 1345606

pv 62600 1st April 2020 1515854

1st April 2022 1,898,300 2nd April 2021 1699722

3rd April 2022 1898300 1699722*1.08+62600

My solution :

=FV((1+8%)^(1/12)-1;12*3;-5000;0;1) =203125

=fv((1+8%)^(1/12)-1;12*16;-5000;0;1) = 1897373

since applicant has started ppf account in month of April 2006 and hence year starts from 2007+15=2022 i.e. till maturity he will pay 16*12 installments.

## ashutosh kuamr said

where i got wrong.

## anirudh said

Prashant Sir,

This is anirudh .sir actually took fpa distance learning last year and got their books but for raip and other modules the difficulty level of the book questions and the one in the exam are entirely of a different level .sir which book would u suggest for preparing for the exams as i failed in 2 modules and yet to give the other modules in a weeks time i dont have much hope with my preparation

## tanutng said

Dear Sir,

I am going to attempt final exam on 2 Aug 2013,apart from available case studies can u please guide me what else I should prepare and recent questions if any,i mean pattern and difficulty level of questions.

I am still not at all confident for exam.

## tanutng said

Hi,i just request to those who have attempted final exam recently, to please put up the questions,they remember.

it will help to study further.

Thank you.

## Prashant Shah said

Difficulty level in recent exam is slightly higher than the past. What you may have to focus is on the concepts to solve.

But otherwise the case studies on the site are adequate to understand the mathematics.

Feel free to ask further.

Prashant.

## tanutng said

Thanks A lot Sir. And I wanted to ask that are we suppose to make PPF calculations with 8% or 8.8%?

## Prashant Shah said

Applicable rate for exam is 8.8%

## Bob said

Dear All, I cleared the last module some days back. It has been sometime and I am yet to land a job in financial planning. I am now wondering if there are really scope in this planning industry? Any sort of help will be welcomed.

## Prashant Shah said

Heartily congratulations!!!

Prashant.

## R Varadarajan said

Congratulations Bob on clearing the Final Module. Yes. The subject is nascent in India but has tremendous scope in the years to come when people realise the importance of composite Financial Planning for Long Term instead of knee-jerk investment advices. You could look for opportunities in Banks in their Wealth Management wings. With best wishes

## Prashant Shah said

Dear BOB,

The job which you are looking for may not be available as of now. You may initially have to start with front end job. Globally also planners spend maximum time in selling their services. You can still look for companies like Principal retirement, ICICI direct or securities, mutual funds and insurance at last.

Also suggest name of the city where you look for the job.

Regards,

Prashant.

## tanutng said

Hi, can u please upload the questions you remember?

## dhairya shah said

sir hello i am dhairya shah i gave exam on 25th n i failed for 10 marks sir n i got ashwin and sahanubhuti case now dis cases will not cum in 2nd attempt….????

## tanutng said

To Dhairya Shah

Hi,i am going to attempt final on 2 Aug,can u please share some questions u got in the exam?

## R Varadarajan said

Dear Mr Dhairya Shah,

You have to prepared for all the 6 cases as the cases are randomly picked up by the system. In case you remember the questions, you should post them here with your doubts in solving them so that you could get some help for solving similar issues in future. With best wishes,

## Prashant Shah said

Dear Dhairya,

These case studies can also be repeated. But I think that makes no difference. Currently rigor of exam has changed hence, you may have to sharpen the concepts and be accurate with calculations.

Past papers may help you a lot. Try to solve them without looking at answers. If all your calculations are correct, you are ready to give exams.

All the best.

Prashant V Shah.

## tanutng said

Sir,

For finals solving case studies of 2008,2009,2010,will be enough to understand the type and difficulty level?

## ashutosh kuamr said

What exactly end of 10th year mean for calculation of future value @ inflation 5.5%, we need to take nper 11 year

## Jasbir Singh said

@ashutosh

It is exactly 10 years. like for the rate which you have given, the future value of an asset which is presently priced at 100 rs will be 100*(1.055)^10=170.8144. This value is at the end of 10 years. for some calculations we will often use this value by saying beginning of 11th year but the meaning will remain same

## ashutosh kuamr said

TNX JASBIR

## ashutosh kuamr said

passed cfp , tnx to all member of group

## Prashant Shah said

Congratulations!!!

Regret for late reply.

Pls remain associated and keep helping other to clear as you did.

Regards,

Prashant.

## ashutosh kuamr said

tnx… i would like to send the rough note i have prepared during my preparation. can u please send ur mail id

## Vinayak Savanur said

Hi sir,

i have thot of taking tax & estate planning exam on sept 10th if you have any soft copy notes plz forward me

thanks and Regards

Vinayak

## tailambal said

i have appeared for tax planning and estate planning exam thrice and still could not clear. the sample paper which is given in fpsb is not sufficient to help to pass the examination.the question which i got was related to trust calculation,

please help

## Ashok Kotha said

Dear all cleared cleared final paper with B grade……..

## tanutng said

Congratulations.

Can you please update ne questions that u remember?

## aarvi1948 said

Congratulations Ashok. Please could you post the details of the case studies you received and the questions, which will help others.

## murli said

Dear Sir,

I recently enrolled myself for CFP classes and planning to appear for initial modules by end 2013. I am 53 years of age , an engineer with management degree and planning to take up Financial Planner as a carrer post retirement. While surfing on net I came across you blog and I find it very useful and Interesting, perticularly the way you guided your colleauges. I will certainly come back to you for the guidance and help.

Regards

murli

## Prashant Shah said

Thanks for appreciation. We are here to help you.

Regards,

Prashant.

## Murli said

Dear Sir,

Yesterday I could clear Retirement & Employee Benifit Module in C grade. Your blog has helped me a lot.

I am planning for Investment module in end April 2014. Please guide me how shall I prepare. Thanks.

murli

## Prashant Shah said

Dear Murli,

Congratulations!!

How many are still left?

Investment planning is not a tough module. You should solve all the questions which are there as important one.

All the best.

## Murli said

Dear Sir,

Thanks for your wishes and encourgaement. Your notes on the blog were very useful for me.

I was in fact preparing for Insurance module, but many of friend told me to try for Retiement first, so attempted. Although I am prepared for Insurnace modile but I find Investmernt module has lot of numerial sums which I like moest. So I will appear for Investment module next.

In RPEB paper I find two numerical questions were on Mutual fund investment annd rebalancing portfolio every 10 years period. Yesterday while surfing your blog, similar question were found to be a part of Invetement practise questions. Does this mean we need to look at the questions of other modules as well? Please advice.

Thanks

Murli

## Murli said

Dear Prashant Sir,

Yesterday I cleared Investment Planning in B grade. The information on this blog was very useful and I am thakful for you. I am planning Tax and Estate planning next. I am having Engineering background and not know much about Taxation. I need you guidance in this module.

Thanks once again.

Murli

## vinod sharma said

Dear sir,

I have cleared all four module of CFP. Now i am preparing for final module.

please tell me what to do after final module.i don’t know about experience required for cfp course.

please tell me about experience.

## JSLN said

Dear Prashant Shah..

I sincerely appreciating you for making this platform to Share knowledge and helping others who look for support for education..

## JSLN said

Dear all.

This is Siva, Enrolled for CFP.

I’m m planning to give Risk analysis nd Insurance planning module exam on Thursday..

Expecting Suggestions from you all..

Regards

Siva..

## pooja said

DEAR ALL,

I SINCERELY NEED HELP FOR CLEARING TAX MODULE,

PLS REVERT.

REGARDS

POOJA

## Nina Sundaran said

Respected Prashant Sir,

Yesterday I given Investment Planning & I got ‘C’ Grade. I got 4 questions from the Practise Questions.I cleared Insurance Planning, Retirement Planning. Nw preparing for Tax Planning.Your blog is helpful for those who pursuing CFP.Thanks for the support Sir.

## Prashant Shah said

Congratulations!!!

Prashant.

## hepguy85 said

Hello, sir

I have given 2 times Insurance exam for cfp but I failed in exam. Plz give me important questions so that I can clear the exam.

## Prashant Shah said

There are no important questions for the subject. Learn the concepts and go for exams. I am also going to publish the calculations for general insurance.

Regards,

Prashant.

## zalakthakker said

Dear Nina,

can u pl tell me d list of question from practice question that was in ip paper

## Nina Sundaran said

Dear zalakthakker,

Sorry for the late reply…

These are the questions i gt in ip paper.

1. 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

3. 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 liquid reserve?

a. 25 months

b. 11 months

c. 14 months

d. 13 months

4. 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

## R Varadarajan said

Congratulations Nina,

Your input on the questions you received would help others in the line to clarify the doubts, if any which in turn will help them to face the exam with greater confidence. With best wishes for the next exam !!!

## Nina Sundaran said

Dear varadarajan

Thanks…

## Tejas said

Sir prashant please will you post a article on how to solve a problem of income from house property with a working notes? Please do it sir it ll help student. M a bcom student 3rd year.

## pooja said

Dear Sir,

I have applied for a challenge status program and my exam is due on 10 Feb 2014. I have only around 25 days to study. I am working as a financial journalist. I havent started the studies yet, as I dont get enough time. I have made mistake to register the exam date too early. Let me know if still there is any way for me to clear it. I can put it a study time of around 2-3 a day.

## Ashish Singh said

Sir please solve this for me : A software professional who retires today has 2 fixed life annuities, one provided by his invested pension plan at Rs. 20,000 pm & other provided by his employer at 35,000 pm. He has a second house which currently is let out at Rs. 2.2 lakhs pa rental. The rentals are expected to increase at 7% pa compounded . He currently spends Rs. 45,000 pm which will rise annually at inflation of 6% pa. If he invests excess amount at the end of every year in an instrument of return 8% pa & utilizes this fund in case of shortfall in funding household expenses, what could be the appropriate size of this fund 30 years after retirement ?

## Murli said

Find out FV annuities ( Rs 55000 x 12) in end mode for N=30 years with i=8%, P/y=1, C/y=1

Find FV of Growing rental income = 220000{ 1.08^30 – 1.07^30} / ( 1.08-1.07)

Find Fv of growing expnses = 45000 x 12{ 1.08^30 -1.06^30} / ( 1.08-1.06)

Add FV of annuities + FV of rental growing – FV of growing expenses to arrive at corpus after 30 years.

This question had appered in RPEB paper which I appeared yesterday and cleared.

## Ajay Kapare said

I got answer as 4,31,43,764…

## hepguy85 said

Hello, I had cleared the Investment and tax exam. Thank you for your support.. This side is very helpful for me. I have some questions that is come in Exam of Insurance Please help me to solve it.

Q1. A bunglow was constructed at a cost of rs 2crore in 2006 and a further Rs1crore was spent over on furnishing in 2008.the bunglow is valued at Rs12 crore in 2012.the costs of construction and furnishing have escalated rate 10% and 15% respectively over the period.the owner wants to totally absolve himself of any expences,in case bunglow is razed down due to some peril. what value would you advise the owner to insure the property?

A) 5.34 Crore.

B)3.50 crore.

C)5.90 crore.

D)5.29 crore.

Q2. A client’s 20 year money back policy of sum assured rs 2 lakh has annual premium of rs 13672, Policy pays back 20% of s.a after each of first three 5-years survival periods and another 40% of s.a on surviving full term. The client has received the third money back. You estimate the gross returns presently in the policy considering reversionary bonus of rs 50 per thousands s.a. you compare the cost benefit if the client pays all premiums and survives the policy and also gets rs 150 per thousand s.a as loyalty bonus. you conclude that _________.

a)the overall return improves marginally by 1.15% p.a

b)the additional in flow on 5 future premiums would amount to over 19% p.a returns

c) the additional in flow on 5 future premiums would amount to nearly 30% p.a returns

d) the additional in flow on 5 future premiums less opportunity cost would amount to nearly 12%

Q3. 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

Q4. 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 back 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.

Q5. A company in the business of warehousing.in 2012,insured its warehouse premises also calamity for a value of rs 1.65cr towards liability coverage,separate insurance towards clients for rs 15cr each were taken to cover the goods kept at any time.the company has cover of rs 10cr also.the warehouse was completely destroyed in fire.the registered amount of rs 30cr.what insurance can be setteled in the company’s claim?

a)rs 1.65 cr to the company and rs 30cr towards liablity to clients.

b) nil to the company and rs 26.65cr towards liablity to clients.

c) rs 1.65 cr to the company and rs 17.5cr towards liablity to clients.

d) rs 1.65cr to the company and rs 25cr towards liability to clients.

Q6. CD is promissory note issued by Bank and Financial Institute. That is part of?

A) CRL only

B) Both CRL and SLR

C) Either CRL or SLR

D) SLR only

Q7. Car comprehensive loan is 1.5 lakh. Deducted 5000 from loan. The car is damaged for an amount of 60 k with 10k accessories he forgets to declare it. Insurance he gets 30k. What will be the claim he will get.

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

Sir, Please solve this Questions. Thanks Sir.

## Riha said

Dear All,

I am going for my final exam after 4 days . Is there any one who has appeared for the exam in recent , if so please do share some of your questions which you faced in the paper. Please kindly do the needful . Thanks

## Vikram Basra said

I have few questions if you want then I can send you via email.

## hepguy85 said

I have few questions for Advance, if you want then I can send you via email.

## Prashant Shah said

You can post the same on this site. It will be a great help.

Regards,

Prashant.

## vikram basra said

Sure, Sir I will post the Investment and Tax. Insurance I have already posted it and I want to know how to calculate XIRR in question.

Q 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 back 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.

Plz help me how to Solve it…. You are very helpful…… Thank you prashant Sir.

## zalakthakker said

Dear Riha,

i had recently given d final paper but could not clear for recent question see comment in advance financial planning sect. of this site also i had post some question of c.c and other

## hepguy85 said

Please help me to solve it.

Q1. A bunglow was constructed at a cost of rs 2crore in 2006 and a further Rs1crore was spent over on furnishing in 2008.the bunglow is valued at Rs12 crore in 2012.the costs of construction and furnishing have escalated rate 10% and 15% respectively over the period.the owner wants to totally absolve himself of any expences,in case bunglow is razed down due to some peril. what value would you advise the owner to insure the property?

A) 5.34 Crore.

B)3.50 crore.

C)5.90 crore.

D)5.29 crore.

Q2. A client’s 20 year money back policy of sum assured rs 2 lakh has annual premium of rs 13672, Policy pays back 20% of s.a after each of first three 5-years survival periods and another 40% of s.a on surviving full term. The client has received the third money back. You estimate the gross returns presently in the policy considering reversionary bonus of rs 50 per thousands s.a. you compare the cost benefit if the client pays all premiums and survives the policy and also gets rs 150 per thousand s.a as loyalty bonus. you conclude that _________.

a)the overall return improves marginally by 1.15% p.a

b)the additional in flow on 5 future premiums would amount to over 19% p.a returns

c) the additional in flow on 5 future premiums would amount to nearly 30% p.a returns

d) the additional in flow on 5 future premiums less opportunity cost would amount to nearly 12%

Q3. 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

Q4. 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 back 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.

Q5. A company in the business of warehousing.in 2012,insured its warehouse premises also calamity for a value of rs 1.65cr towards liability coverage,separate insurance towards clients for rs 15cr each were taken to cover the goods kept at any time.the company has cover of rs 10cr also.the warehouse was completely destroyed in fire.the registered amount of rs 30cr.what insurance can be setteled in the company’s claim?

a)rs 1.65 cr to the company and rs 30cr towards liablity to clients.

b) nil to the company and rs 26.65cr towards liablity to clients.

c) rs 1.65 cr to the company and rs 17.5cr towards liablity to clients.

d) rs 1.65cr to the company and rs 25cr towards liability to clients.

Q6. CD is promissory note issued by Bank and Financial Institute. That is part of?

A) CRL only

B) Both CRL and SLR

C) Either CRL or SLR

D) SLR only

Q7. Car comprehensive loan is 1.5 lakh. Deducted 5000 from loan. The car is damaged for an amount of 60 k with 10k accessories he forgets to declare it. Insurance he gets 30k. What will be the claim he will get.

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

Sir…….. Please solve this questions. I clear Tax paper and Investment paper. Thank you for big support.

## hepguy85 said

Can anyone solve this question?… thanks.

## zalakthakker said

HI,

for que no 3 ans is C 14 months

## Vikram Basra said

Thank you. Yes I know that answer but I want to know Q1,2,4,5,6,7 question answer.

## hepguy85 said

Thank you. Sir I know the 3rd question answer but, I want to know about remaining question answers…. Plz help me out

## Vikram Basra said

Please solve all others question…….. Plz help me out…. Thank you very much…..

## Sonali said

Please help me to solve it.Q1. A bunglow was constructed at a cost of rs 2crore in 2006 and a further Rs1crore was spent over on furnishing in 2008.the bunglow is valued at Rs12 crore in 2012.the costs of construction and furnishing have escalated rate 10% and 15% respectively over the period.the owner wants to totally absolve himself of any expences,in case bunglow is razed down due to some peril. what value would you advise the owner to insure the property?

A) 5.34 Crore.

B)3.50 crore.

C)5.90 crore.

D)5.29 crore.

a)the overall return improves marginally by 1.15% p.a

b)the additional in flow on 5 future premiums would amount to over 19% p.a returns

c) the additional in flow on 5 future premiums would amount to nearly 30% p.a returns

d) the additional in flow on 5 future premiums less opportunity cost would amount to nearly 12%

a.25months

b.11months

c.14months

d. 13 months

a)22.59%p.a.

b)30.16%p.a.

c)30.57%p.a.

d)32.37%p.a.

a)rs 1.65 cr to the company and rs 30cr towards liablity to clients.

b) nil to the company and rs 26.65cr towards liablity to clients.

c) rs 1.65 cr to the company and rs 17.5cr towards liablity to clients.

d) rs 1.65cr to the company and rs 25cr towards liability to clients.

A) CRL only

B) Both CRL and SLR

C) Either CRL or SLR

D) SLR only

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

## Vikram Basra said

Hi, The Q 1 answer is 5.29 crore and Q2 answer is A option, Q 3 is 14 months. Q 5 answer is 4 option. Q7 is incomplete and now I have the full question for Q7.

## Vikram Basra said

Above 7 questions that I had paste in this website all are coming in Investment exam and some of in other Exam…… You can easily clear the Exam.

## Vikram Basra said

Q6 answer is b option.

## Stuti Shah said

Dear Sir,

I have tried the final xam twice bt was unable to clear it..i have some of the qts for which i need some help…

1. Mr. A is planning to buy a new house, which of the following are the pure risk he is going to face:

a.) Theft

b.) Fire

c.) Legal liabilities

d.) Loss on sale

2. If Mr. A asks you to suggest some mutual fund which all categories you will consider first:

a.) Historical data

b.) Asset allocation

c.) Risk profile

d.) Cost structure

e.) Investment objective

3. Gurpreet plans to change the nomination in his term & endownment plan. You advise assignment instead . gurpreet asks you the diff between both

4. In case of grievance against insurar, what order gurpreet should act:

a.) File a complaint

b.) Make a representation

c.) Consumer court

5. gurpreet has a comprehensive insurance policy with an excess clause of Rs. 5000. In accident damage to own car was Rs. 26000 & to the other person’s car was Rs. 8500/- what claim will the insurance company will pay..??

a.) 21000

b.) 26000

c.) nil

d.) 34500

I would really request you to please help me with dese qts as i am appearing for the xam tomm

## Vikram said

Que 1 ans is Loss on sale and Q5 answer is 21000

## Sonali said

Thanks Vikram for the answer of this Questions.

Also Requesting you if possible can i have Solution for Q. 2, Q. 4 and Q. 7 as Earliest.

## vikram basra said

Hi, Sonali.

I don’t have the solution for Q2,But I have the solution for Q4 but question is incomplete, Q4 can be solve in Excel. The XIRR will apply on Q4. I know how to solve it, but fact is that the question is incomplete… Q7 I have the full question but, I want to confirm it solution. So please give me some days… This question are coming in Insurance planning and in Investment planning paper.

## vikram basra said

Q7 Q. Car comprehensive loan is 1.5 lakh. Deducted 5000 from loan. The car is damaged for an amount of 60 k which include10k accessories he forgets to declare it. What is admissible normally and adherence, where the insure is successful in requiring of Rs 30k under subrogation. What will be the claim he will get.

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

This is complete question.. Plz anybody can help me to solve it.

## pulkitbshah said

Any one solve the industrialist question of insurance planning

## Sonali said

Please provide me REPB Questions with Solution.

Thanks

## hepguy85 said

Hello, Sonali… For retirement you need to study the sample paper of Retirement and Additional sample paper of insurance and retirement planning. In retirement you will get SIP 2 question in Exam and one or two equity and debt question. One reverse mortgage ques.. some from insurance and 2 quest from Income tax..

On Wed, Apr 30, 2014 at 1:03 AM, prashantvshah.wordpress.com wrote:

> Sonali commented: “Please provide me REPB Questions with Solution. > Thanks” >

## namrata said

Qn A. Car comprehensive loan is 1.5 lakh. Deducted 5000 from loan. The car is damaged for an amount of 60 k which include10k accessories he forgets to declare it. What is admissible normally and adherence, where the insure is successful in requiring of Rs 30k under subrogation. What will be the claim he will get.

a) 50k, and 5 k

b) 45k and 15k

c) 50 k and 10k

d) 45 k and 10k

Please anyone can solve dis ques or even tell me the correct answer For dis ques.

Thanku you sir

It would be helful if U tell me the ans.

## hepguy85 said

Ans is D) 45k abd 10 k.

## Prashant Shah said

I too agree with answer.

Regards…

## hepguy85 said

Hello, there Insurance k exam mein retirement ke 1 ya 2 ques ayenge.. Agar apne koi aur bhi exam dia hai to usme se TVM ke 2 ques ayenge… Sample paper achi tare karo plus additional sample paper bhi.. pass ho jayo ge….. Thanks regards Vikram basra.

On Tue, May 20, 2014 at 8:41 PM, prashantvshah.wordpress.com wrote:

> Prashant Shah commented: “I too agree with answer. Regards…” >

## Prashant Shah said

Dear Vikram,

I agree. IFP has 20% weight in all the modules. And many questions of tvm float across all the modules.(questions already posted on the site). Hence better tvm skills can definitely fetch 8 marks in any of the module.

regards,

Prashant v shah

## hepguy85 said

Thank you. Prashant Sir.

## hepguy85 said

Hello, In this question the correct line is. Car comprehensive Insurance is 1.5 lakh deducted 5000from Insurance. So, the correct option is D) 45 k and 10 k

## namr30 said

Thanku….

## namrata said

Car comprehensive loan is 1.5 lakh deducted 5000from loan. The car is damaged for an amt of 60k which includes 10k accessories he forgets to declare it. What is admissible normally and adherance , where the insure is successfull in requiring of rs 30k under subrogation . What will be the claim he get.

A) 50k& 5k

B) 45k & 15k

C) 50k & 10k

D) 45k & 10k

Please anyone. Can tell me the ans of this question.

Thank you sir

It would b vry hlpful if you tell me the ans of dis questions.

## Vikram said

D) option is correct ans.

## Harsh Kamdar said

Dear Sir,

Can you plz provide me with question bank on recent case studies for Advance Financial Planning Module (Exam 5).

I am appearing in first week of June. I always had support of yours in previous module. Plz provide notes/ questions on all case studies i.e. Gurpreet, Mahesh, Sahanubhuti, Ashwin, Sanjay on my mail id which is kamdarh@ymail.com.

Thanking you

Harsh Kamdar

## Rajat said

Can anyone please suggest me books for CFP prepration apart from sample papers and blog . WIll be giving IP in 15 days.

## Prashant Shah said

There are no proper books written for the program. Hence don’t end up paying a lot for buying books.

Regards,

prashant.

## rajat said

Sir i need question bank for asset allocation and ratios . what are your reviews about “Investment Analysis And Portfolio Management by prasanna chandra”

## Karuna said

Hello, where do you find the solved problems with similar difficulty level as given in the sample question paper of retirement planning in fpsb website? And also which is the link where I will find solution to the problem mention aboveby various users? Thx

## murli said

Dear Prashant sir,

Today I cleared RAIP paper and with this I have cleared 4 papers. I am planning preparation of AFP. Will you please share link for old or sample cases ( I have downlaoed sample cases available on FPSB site). Regards

murli

## Prashant Shah said

Past papers are already placed in afp section of the site. I am going to publish some more practice questions for the same.

## Prashant Shah said

Also request u to share some questions which were there in ur exam.

## murli said

Dear Sir,

As you suggested here are the questions I faced in yesterday’s RAIP paper

Four questions (exactly same) given below which have appeared in your blog ( by Hepguy on 25th Mar 2014) were asked

Car damage insurance,

Fire in mall,

Comparing return on Insurance Policy

Bungalow damage

I therefore thank you for your blog which helped to prepare for exam.

Four questions were very similar from sample papers although slightly tweaked.

Factory insurance by Reinstatement method,

Air condition insurance on replacement basis with (WDV instead SLM) method,

Insurance requirement based on increasing income and expenses,

Insurance requirement based on need basis

Around 5 – 6 questions on insurance policy calculation. All the questions were tweaked and far different from sample papers.

One on maturity value with money back policy

One of death claim,

One of SV,

One on return on policy investment component on maturity value

One of loan amount on money back policy

One on comparing returns of money back policy paid up value with 8% return

The additional questions which did not appeared in your blog were as below

Pardon me for not remembering the exact answers and the wording and figures in the questions, but I tried to reproduce the essence of the question here.

1) 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 don’t remember the no)

– Yes, as his net worth will increase between Rs xxxxxx to Rs xxxxxx (I don’t remember the no)

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

2) Tow companies A and B purchase land in 2006. Company A completed construction in 2007 for Rs 70 lakhs and started manufacturing plant in 2008 for Rs 1.5 cr. Company B completed the construction in 2009 for Rs 90 lakhs and started manufacturing plant in 2009 for Rs 2 cr. Company A provides depreciation @ 10% on SLM method whereas Company B provides depreciation on WDV method. What addition reserves Company A need to provide on 2013 as compared to company B.

Regret I do not remember the answer options.

3) Ashok, a doctor by profession of age 33 years and have productive practice till age 62. His annual income is Rs 40 lakhs and monthly expenses are Rs 60000 of which he accounts for 15%. He has 2 daughter age 6 and 12. He wishes to provide fund of Rs 20 lakhs for each in today terms their education when they are 18 years old. He has already made provision of Rs 27 lakhs towards this. He has insurance policy of Rs 15 lakhs. He wish to make provision of his next 5 years and for non-working wife for next 40 years. How much insurance he should take now.

Regret I do not remember the answer options.

4) Mahesh, a lawyer by profession is 38 years old. He has three polices of Rs 20 lakh, RS 20 Lakhs and Rs 15 Lakhs money back with survival benefit of 15 % every 5 years of which 1 benefit is received. All these policies are maturing at his age of 60. He has a 2 daughter age 10 and 12 years. His annual earning are Rs 30 Lakhs. He wish to make provision of Rs 20 lakhs in today’s cost for each for their marriage when they will be 21 years. His monthly expense is Rs 50000 of which he accounts for 25 %. Calculate the insurance he need considering his tenure for next 10 years and for the expenses for his non-working wife for next 30 years.

Regret I do not remember the answer option.

5) Two different policies one with money back and other endowment were asked to compare with respect to cover and returns and was asked to suggest which is more suitable for a man age 32 with monthly expense of Rs 35000 ( policy holder account for 20%) and non-working wife for her expenses for 30 years.

Regret I do not remember the figures in questions and answer options as Time was out for me.

Hope these will be useful for future aspirents.

Regards

## Prashant Shah said

dear Murli,

I am amazed. How could u remember this much?

Thank you so much for this effort.

Regards,

Prashant.

## bhawnapearl said

hi..does any one have solutions to these questions?Prashant sir have you been able to solve this?kindly share the answers.

## udaycfp said

Dear Murli

my question is u get any question like marriage of child & higher education of child

pls ans asap

## kapil verma said

Dear all

My name is kapil verma and i am going to give final module on 19 aug. can any one suggest me what types of question should be in main focus

## venkat53 said

Dear Prashant,

I’m very happy and appreciate you that you are providing CFP course material to everybody at free of cost.I just want to know brief profile of yours.Myself I’m Bank employee qualified CAIIB and completed 4 years of service.I’m very much interesting in doing CFP programm.I’m facing two problems which mentioned below

1.My problem is that I’m staying Tyre-II city where there is no Training center and it is very difficult to choose Education provider who is offering e-course or online mode learning.I’m looking for ICICI direct and IMS proschool.My personal request to you Kindly tell me which institute is better for online course.

2.My second question is I don’t have any idea on Four Modules(IP,RP,TP etc;)whether I should choose Regular path or Challenge status path.

Please clarify about doubts……

## venkat53 said

Waiting for your suggestions

## hepguy85 said

Hello, I have cleared the Retirement Exam and I want to thanks to Prashant shah for this. Dear all to clear this retirement Exam you need to first solve all theory question in 20 minutes. Then you can easily clear this exam, I have many question that comes in Retirement Exam. The retirement Paper is very lengthy, if your concept is cleared than you can clear this exam. You need to study from Additional sample paper and retirement sample paper. In Exam there is 6 question from both sample paper. Reverse mortgage ques, Not covered Gratuity ques, one Insurance ques from sample paper the ans is 14 months and many more.. I will add this ques soon. Thanks again Prashant Shah….

## Prashant Shah said

Congratulations!!!!

## hepguy85 said

Thank you Prashant shah sir.

## bhawnapearl said

hi could you please post the questions for rpeb..i’ll be appearing for the same on 29th of this month.

## hepguy85 said

Sorry, I forget to post the questions… Here are follows:-

Q1 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?

Q2 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.

Q3 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

Q4 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*

Q5 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

Q6 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..

Q Q7 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, you estimated the period of delayed retirement beyond 60yrs to be? A) 3 yrs, B) 4yrs, C) 4yrs.4 months D) 6yrs.6 months.

Q8 Q8 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.

## Aditya said

Awesome information…really helpful.

## sonali said

Can anybody help me to get solution for this questions.

1. A bond with par value of rs 1000 and coupon rate of 11% (payable semi-annually, next coupon due immediately) and maturing after 5 years is available at Rs.942.50 in the market. If the coupon received can be reinvested till maturity at average rate of 8.5% pa. What could be realized rate of return from such investment if the bond is held till maturity?

a. 13.33%

b. 13.15%

c. 13.90%

d. 13.60%

2. An investor purchased 5000 units of an equity oriented MF scheme under dividend reinvestment scheme on 1st June 2012 at NAV of rs 18.46 along with systematic investment plan of rs 5000, each for 6 months. The SIP dates are 1st of every month beginning 1st July 2012. The NAV at which additional unit were bought through SIP were rs 19.06, rs 18.51, rs 17.23, rs 18.97, rs 16.75 and rs 17.95 on 15 October 2012. The scheme declared a dividend of 25% on face value of rs 10 per unit which record date being 21st October 2012. The NAV on 22nd October 2012 was rs 16.50. The investor redeemed all units on 28 January 2013 at a price of rs 19.10 . What holding period return was obtained by investor?

a. 27.83%

b. 23.58%

c. 15.89%

d. 18.46%

## Prashant Shah said

Both the questions are solved. Search post in investment planning category.

Regards.

## sonali said

Thanks Sir,

I got solution for this que but not getting the Method how it has been Solved. It would be really thankful if u explain me the same.

## hepguy85 said

Hello Sonali, The ques 1 solutions 1000*11/100/2=55 N=5.5*2 I=8.5 Pmt=-55 Fv=? 748.06

N=5 I=? 13.15 Ans. pv=-942.50 Fv=1748

Thanks Regards Vikram Basra

## Vinayak Savanur said

Hi Prashant Shah

Can you please send me the solutions for the Retirement Planning Practice Questions – 3, CFP. i am attending the exam on 15th november so It will be very help full to me if you send them ASAP.

Regards

Vinayak.Savanur

## sonali said

Also would like to know weather rebalancing should be done in first Que. Mr. A is of 35 yrs with spouse and a kid of an age 5 yrs.

## sonali said

thanks for the methosd of solution

## hepguy85 said

Sonali, That ques is solve in End Mode only. You are welcome. Vikram Basra.

## moneyacres said

Hi Prashant sir,

Hope you’re doing well.

Yesterday my paternal uncle asked me this question, and I don’t abt this

PROS and cons of opening a Demat account on child name(4years)?

Request you to help me answer this question

Thanks and regards

Jasbir singh

## dhwani said

does ny1 have given tax planning recently plz help me as m gonna give mah exam next week

## gagandeep walia said

Sir,

. i need your help as i have fauled in retirement planning thrice with d grade please suggest me books which i must refer to and your advice is most appreciated.

## murli said

Dear Friend,

There is lot of material available on this site itself. You may refer my mail dated July 15 2014 for the questions I faced in Retrirement module.

The sample question paper on FPSB site are also useful.

## gagandeep walia said

thank you

## gagandeep walia said

dear friend,

thanks for the effort but they are of insurance module.

## rahul2008mohan said

Hi Im appearing RPEB this month can anybody come with ans/ for the below questions.Its really appreciable is some one heip me regarding this

Q1 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?

Q2 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.

Q3 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

Q4 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*

Q5 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

Q6 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..

Q Q7 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, you estimated the period of delayed retirement beyond 60yrs to be? A) 3 yrs, B) 4yrs, C) 4yrs.4 months D) 6yrs.6 months.

Q8 Q8 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.

## murli said

Q1. I am bit confused. Does the question asked for additionl PV ? I donot know what is entire PV?

Q2. The answer for Q2 is Rs 1.87 Cr. Solve in end mode. with Pv as Rs 25 Lakhs and PMT of Rs 1.5 Lakhs each in eq & debt upro age 55. Total comes to Rs 9700125. Rebalnce this amount in 70% & 30 % with PMT of Rs 5 lakhs also in this proposrtion for 5 years. The total at the end is Rs 1.8777 Crore. Hope I am right.

I will try other sums tomorrow.

## rahul2008mohan said

Thankyou sir,Looking for an early reply

## murli said

For Q5, we need to know number of years of service, which is not appearing. The exempted gratuity in this case is least of

1) actually recived Rs 12.5 lakhs

2) limit of Rs. 10 Laks

3) 1/2 x 10 months average salary ( includes Basic + 40% of basic for DA + 50% of basic for commission) ( please note the salary hike for 3 months only) x no of completed years of service.

## rahul2008mohan said

Hi Murali,

Thanks for your reply some how i couldn’t clear RPEB Exam I felt little difficultI have seen few questions from the above mentioned list ,Can some body who already cleared come up solutions That Would be a great help.Looking from a reply those who already cleared.Sugget me is there any other imp questions related to RPEB and as well as the concepts to prepare.

Q1 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?

Q2 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.

Q3 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

Q4 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*

Q5 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

Q6 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..

Q Q7 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, you estimated the period of delayed retirement beyond 60yrs to be? A) 3 yrs, B) 4yrs, C) 4yrs.4 months D) 6yrs.6 months.

Q8 Q8 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.

9)..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 back 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.

## rahul2008mohan said

Hi, can anybody come up with solutions above mentioned questions im appearing RPEB Any help that would be greatful

## hepguy85 said

Q1 answer is 36410256. Q2 option C, Q7 option D, Q9 option C. Regards. Vikram Basra.

*Regards,*

Financial Planner.

## rahul2008mohan said

Thanks for your prompt reply Can you solve Q5,Q6

## rahul2008mohan said

Hello,

Thanks for the solutions can any one help me related to the below question?Solution

A) 3.88 crore, B) 1.85 crore, C) 4.22 Crore, D) 4.53 Crore..

Thanks for your time kindly do it needful

## aarvi1948 said

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

## rahul2008mohan said

Thanks for prompt reply

Q8 This is come under PERFA and IRDA license of insurance company?

Is this answer B plz correct me

## rahul2008mohan said

What is PERFA?

Q8 This is come under PERFA and IRDA license of insurance company?

Is this answer B plz correct me

Any one know this answer Imp question

## aarvi1948 said

Perhaps you are referring to PFRDA ( Pension Fund Regulatory and Development Authority ) as there is nothing in the name of PERFA. The answer in this case is ( A ) Reliance Life Insurance – which is a ASP ( Annuity Service Provider ) & also an Insurance company registered under IRDA (Insurance Regulatory and Develoment Authority ). This is a good question as the details of ASP are available only in PFRDA website

## rahul2008mohan said

I cleared the paper with ‘B’ Grade RPEB still two more to go. FPSB raised their standard its little bit tough when compared to past

## aarvi1948 said

Congratualtions Rahul !!!

## Prashant Shah said

Many congratulations. Great going.

Regards,

Prashant.

## murli said

Congrats Rahul. RPEB is toughest one and you cleared in B grade is really good. Keep it up. All the best.

## rahul2008mohan said

Thank you all now need to clear taxplanning can anybody come up with tax planning concepts & Questions who already cleared.

Thanks in advance

## gagandeep walia said

please help me with these two questions-

1) An employee to retire after 5 years .he today has a dictated corpus of 60 lakhs invested at an average yield of 9.5 % pa to fund his 30 years post retirement .he expects to receive lump sum retirement benefit of 20 lakhs & a lifelong fixed monthly pension of 10000 from his employer .his current monthly expenses are 42000 .if he can contribute towards his retirement fund rs 20000 per month till retirement & expects inflation 6% pa from now on ,you assume the variable annuity rate at 1.5 % over & above inflation for 30 years period post retirement to assess additional corpus required. the same approx is………

2) an annuity product xx offers annuity payable for life at a uniform rate rs 9350 pa per lakh rupees of purchase value. another product yy offers annuity payable for life with return of purchase price on death of the annuitant at the rate of 7110 per on lakh rupees .your client age 60 and life expectancy currently estimate 75 years , has to invest rs 40 lakhs of retirement funds by choosing one of the annuties .you estimate considering a 5 years cushion on the expected life of your client ,the returns provided in xx & yy products & arrive at right selection of your client is……

## gagandeep walia said

I am appearing for the paper please provide me with the solutions.

## Pawan Gupta said

Did you get solution for these question ? If you’ve then it will be very helpful if you send me the solutions for these questions.

Thank you.

## udaycfp said

Dear sir,

i can’t understand how much passing marks in module exam . some says 60% is “C” it means 150*60% =90

## Prashant Shah said

Passing percentage is 50%. You need to score at least 75 marks to get through.

Regards.

## udaycfp said

Dear Sir,

I make sum comment & doubt on TVM on site question.

please provide me sum answer.

Thanking you

## Prashant Shah said

Oh yes. I will get back on that asap.

## udaycfp said

Dear sir

Please help to clear my doubt & comment on it pls provide me right direction.

## udaycfp said

Dear sir,

can you have 1&2 Marks ques. of RPEB exam.

Regards

Udaycfp

## udaycfp said

Dear sir,

I given exam before the month, how i can confirmed 1 & 2 Marks question is right.

& how to manage the time in exam for 3 & 4 Marks question in RPEB exam

Thanking you,

## pranav raliya said

1. A 100 par value bond bears a coupon rate of 14 percent and matures after 5 years .Interest is payable semi-annually. Compute the value of the bond if the required rate of return is 16 percent.?

2. On 10th March 2013 Arvind had taken an open short position of 10 lots of Nifty futures, with an average price of Rs. 4,450. On 10th March 2013, Nifty closed at Rs. 4,520. However, he did not square off his position until 11 March 2013 when Nifty dipped to an intraday low of Rs. 4,395. He squared off his position of 4 lots at Rs. 4,495 & remaining 6 lots on an average price of Rs. 4,410. On 11th March 2013, Nifty closed at Rs. 4,460. The lot size of a Nifty future is 50. What profit or loss was booked by Arvind on his entire position? (Assume Brokerage and taxes per lot is Rs. 50 on each side, while buying as well as selling) ?

3. Consider the following information for three mutual funds, A, B, C, and the market. Risk Free Rate is 6% Market Return (%) Standard Deviation(%) Beta Mutual Funds A 12 18 1.1 B 10 15 0.9 C 13 20 1.2 Market Index 11 17 1.0 Calculate the Jensen measure for the three mutual funds and the market index ?

4. The market price of a Rs1000 par value bond carrying a coupon rate of 14% and maturing after 5 years is Rs1050.what is the YTM on this bond? What will be the realized yield to maturity if the reinvestment rate is 12 percent?

5. You have recommended a client to invest in a Balanced Mutual Fund. What annual returns should the fund generate in the first five years to equal the value that the investment would have earned in Fixed Deposit? Note: Present interest rate on a 5 Year deposit is 8% p.a. The Balanced Mutual Fund charges an entry load of 2.25%. Management and other fee is 1.10% P.A. charged at the end of the year (Ignore taxes)?

6.The average inflation over the last three years is 5.5 % p.a. You invested Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh. What real return have you obtained from investment?

## pranav raliya said

Plzzz help anybody i need answers for the above ASAP…

## udaycfp said

Dear sir

My exam is end of 3 week.

## udaycfp said

Dear all friends,

Please help me to clear my RPEB exam in next week.

## hepguy85 said

Hi. I had already post the retirement questions. Plz check that. Regards. Vikram On Jul 15, 2015 11:10 AM, “prashantvshah.wordpress.com” wrote:

> udaycfp commented: “Dear all friends, Please help me to clear my RPEB > exam in next week.”

## udaycfp said

Dear all friend

Thanking you for your valuable reply.

i have doubt on ans

1]Mr. A had taken a loan of Rs. 40 lakh in July 2010 at a floating rate of interest of 10% p.a for tenure of 20 years from a housing finance company. The company sent a notice raising the interest rate to 10.75% p.a. effective January 2012 thereby increasing EMI. He decides to refinance the loan at 10.25% from a bank which charges a processing fee of 1% of loan sanctioned. What absolute amount he stands to save in the remaining tenure if the outstanding loan amount as at end of March 2012 is refinanced so that the new loan terminates as per original tenure?

(a)Rs. 3,60,948

(b)Rs. 1,92,266 ans by my

(c)Rs. 4,90,240

(d)Rs. 2,39,401 ans by sample paper

here the charges pro fees 1% after the different calc but in real term when loan is refinance the Loan amt + loanx 1% = new loan come then we fond EMI & different to save money.

2] Your client started investing Rs. 12,000 per month a year ago in an asset allocation of 30:70 in equity and debt to achieve a goal in 6 years from now by accumulating Rs. 10 lakh. You realize that he would be requiring Rs. 15 lakh for the same goal. You expect equity and debt to give returns of 11.75% p.a. and 8.25% p.a., respectively in the entire period of investment. You assess changing asset allocation to 65:35 in equity and debt by investing Rs. 2,000 additional per month to see how closer he can reach to his goal. You find that ______.

how they get Ans of RS.147,691 but my ans is 174689 pls correct.

3] A retired person has contracted a 20-year immediate annuity plan which provides an annual stream of income, increasing year-on-year at 5%. He is due to receive 5th installment of Rs. 5.50 lakh which is 6% of the balance corpus remaining in annuity. He wants the term of the annuity to increase. He estimates that Rs. 4.75 lakh would be sufficient for his current living expenses. He proposes this to the annuity provider with other terms remaining as originally agreed. If the yield of the annuity is 6.5% p.a., how many more installments would get added in the restructured annuity than the original?

there are cal n=? I-[6.5-5]/1.05 pv-8691667 pmt-475000 [ why is not 475000*1.05 ] FV =0 p/y-1 c/y-1

please Ans asap.

Thanking you.

## udaycfp said

Thanking you for your valuable reply

## udaycfp said

Dear Sir & all my friends

it question based on case study A to F

1 ]Sahanubhi is confident to achieve the desired inflation adjusted retirement corpus with her existing investment, but she wants an additional 1crore (then cost) @ age 70 for donation/charity purpose and another 1 crore (then cost) to leave an estate without making additional investment.

Now, She is ready to compromise 10% in her monthly requirement to ensure that at least 1st goal of 1 crore (then cost) is to be achieved and she wants to know surplus/shortfall in her 2nd goal of 1 crore (then cost)

(Post retirement, she will invest in debt fund)

2] You advised Sanjay to invest the retirement corpus in such way that bunch of 7 years monthly expenses available in a risk free fund in the beginning of 7 years and remaining corpus to be invested in a balanced mutual fund. He wants to know how much retirement corpus required maintaining the same life style based on above strategy and wants to analyze return of strategy.

Please sir & my friends Please give Hint how to solved both the question what right process

## murli said

Please read the post of Prashant Sir on this blog dated Sept 14, 2012 Under heading ” Latest Exam – 5 Questions and Answers for CFP” Click down load SP -3. You will get answer for both above questions. Answer figures may vary as data might have changed but method is given clearly.

Request to surf on this blog for past post. I am sure you will get answer for all the questions you have. Prashant sir has made such a vast information available, only you have to data mining.

Regards

murli

## udaycfp said

Dear sir,

i comment on blogs .

please reply me asap for u

Regards

Uday

## udaycfp said

Dear sir,

Please reply on TVM comment asap.

## udaycfp said

Dear Prashant Sir ,

I clearing my RPEB exam with C grade but I am not happy with this result because 3 Marks question are vast answer,

i attended less question of 3 & 4 marks question which is based on mutual fund but in such ways they doing with end mode calc but question was silent. it too confused me because thus rule says that all investment is Beg mode if question not said??????

what can i do for my next exam for RAIP & IP

what can go through with in the exam asap for u

Pls suggest me

Thank a lot for helping me for my RPEB exam.

Regards,

Uday

## Prashant Shah said

Dear Uday

Congratulations. Please share the questions you remember.

Regards.

## udaycfp said

Q1] 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%) Marks 3

A)1.81 crore, B)1.89 crore, C)1.87 crore, D) 1.83 crore.

Q2] 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%).

Q3] 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?

Q.4] An individual opened PPF account on 1st April 2007. The amount outstanding in his account

on 31st March 2013 was Rs. 4,93,564. If he had a balance of Rs. 2,45,428 on 31st March 2010,

what amount can he withdraw and from which date?

Q.5] An annuity product is designed in such a way that it gives first cash flow at 4% of the corpus at the end of first year and thereafter every year in the form of growing annuity at the rate of 5%. If the cash flows are guaranteed for 20 years, what rate of return is obtained on the corpus invested?

Q.6] An individual has recently purchased a house worth Rs. 50 lakh for self-occupation by availing housing loan of Rs. 30 lakh at 10% p.a. rate of interest. The tenure of loan is 15 years. He has Rs. 10lakh financial assets at present. He is expected to save annually Rs.3 lakh which he invests on a quarterly basis beginning a quarter from now in an instrument which is expected to provide return of 9% p.a. What would be his net worth 3 years from now? The value of the house which is for consumption purposes is not considered in the net worth so arrived.

[ans comes in negative]

A) 3.88 crore, B) 1.85 crore, C) 4.22 Crore, D) 4.53 Crore..

Dear sir ,

Please ans the Q.1 question why we use end mode for ans Rs.1.87cr

pleaseeeee sir give that ans only.

## udaycfp said

Dear sir,

Please I am waiting for your valuable ans of that Q.1

Thank for your reply

## hepguy85 said

Insurance and investment planning exam is easy. I have already post the ques. Regards vikr

## udaycfp said

Dear

what can i do for my insurance exam pls advice to me

## hepguy85 said

Congratulations.

## udaycfp said

Dear,

Thank a lot. for your advice

## udaycfp said

thank

## Pranav Raliya said

heyy uday many many congratulations for RPEB..!!!! can u plz share the solutions and answers for the above questions plzz that would be a great help for me… ASAP eagerly waiting for your replyy….,,

## udaycfp said

Dear pranav

It yours first exam of RPEB

i share ans u but 1ST solved by u.

## Pranav Raliya said

no uday this is my 3rd exam i have cleared IP and RAIP…

but im really puzzled in RPEB.. i tried some of these but im not sure weather they are correct or not.. plzz provide ans my xam is on this 27… waiting

## udaycfp said

Dear pranav

Q.1 ANS

1 five yr on end mode extra 3lac investment

Eq.= n-5 i-11 pv-2500000 pmt-150000 fv= 5146815

debt= n-5 i-8 pv-2500000 pmt-150000 fv= 4553310

ration taken 50:50

total amt accm= 9700125

2 five yr on end mode ration 70:30 5lac extra invest

Eq.= n-5 i-11 pv-6790087 pmt-350000 fv= 13621423

debt= n-5 i-8 pv-2910037 pmt-150000 fv= 5155789

ration taken 50:50

total amt accm= 18777212

ans = c

Q.2 ANS

SET END N=16 I=8.8 PV=0 PMT=-100000 FV=3244700

Q.3 I DONT HAVE ANS

Q.4 ANS

Solution:

Time Rule:

Initial subscription date 1-Apr-2007

Year of initial subscription: 2007-08

Expiry of 5 years from the end of FY of initial subscription31-Mar-2013

Year of withdrawal to be 2013-14

Amount Rule:

1)Balance at the end of 4th FY preceding 2013-14,

i.e. at the end of year 2009-10 or as on 31st March 2010 245,428

Rs.50% of this balance 122,714

Rs. [1]

2)Balance at the end of preceding FY, i.e. as on 31st March, 2013 493,564

Rs.50% of this balance 246,782

Rs. [2]

Lower of [1] and [2]

122,714

Rs.From 1st April, 2013 in the year 2013-14

Please share question of RAIP & IP my exam in next month ????

i share last two question ans tomorrow at morning.

## Pranav Raliya said

ya sure i will…. can u help me on below one..

Rajesh, aged 35 years, wishes to retire at 60. If his present monthly expenses are Rs. 50,000 and life expectancy is 75 years, calculate the additional corpus required in case he lives longer by 10 years than his life expectancy. Assume inflation to be 7.5% p.a.

## udaycfp said

Dear Pranav

Rajesh, aged 35 years, wishes to retire at 60. If his present monthly expenses are Rs. 50,000 and life expectancy is 75 years, calculate the additional corpus required in case he lives longer by 10 years than his life expectancy. Assume inflation to be 7.5% p.a.

there is missing investment rate or return on invest post retirement yrs

let assumes return rate is 8%

then first u go for

1ST

1-find 50000 pm exps with inf rate 7.5% at age 60 = 304916

2-find RRR=8-7.5/1.075=0.46512

3-FIND THE PV OF ALL FUTURE EXPS AT AGE OF 60

N-15*12 I-0.46512 PV-? PMT- 304916 FV-0 P/Y-12 C/Y-1 PV=53028525

2ST HERE HIS LIFE EXPn increase by 10yrs after 75 age it means that he lives at age of 85

1-find 50000 pm exps with inf rate 7.5% at age 60 = 304916

2-find RRR=8-7.5/1.075=0.46512

3-FIND THE PV OF ALL FUTURE EXPS AT AGE OF 60 BUT

N-25*12 I-0.46512 PV-? PMT- 304916 FV-0 P/Y-12 C/Y-1 PV=86384854

find the short fall =86384854-53028525=33356328

## Pranav Raliya said

above question is complete.. why we assume return rate = 8%…

though the answer is 8829279..

## udaycfp said

Dear pranav

Q.5] An annuity product is designed in such a way that it gives first cash flow at 4% of the corpus at the end of first year and thereafter every year in the form of growing annuity at the rate of 5%. If the cash flows are guaranteed for 20 years, what rate of return is obtained on the corpus invested?

there excel file pls give me your email id then i mail to you

Q.6] An individual has recently purchased a house worth Rs. 50 lakh for self-occupation by availing housing loan of Rs. 30 lakh at 10% p.a. rate of interest. The tenure of loan is 15 years. He has Rs. 10lakh financial assets at present. He is expected to save annually Rs.3 lakh which he invests on a quarterly basis beginning a quarter from now in an instrument which is expected to provide return of 9% p.a. What would be his net worth 3 years from now? The value of the house which is for consumption purposes is not considered in the net worth so arrived.

[ans comes in negative]

A) 3.88lac , B) 1.85lac, C) 4.22lac D) 4.53lac

1st

solve the loan find EMI

SET-END N-15*12 I-10 PV-3000000 PMT-? FV-0 P/Y&C/Y=12 PMT=32238

FIND THE BAL LOAN AMT AFTER 3YRS THEN AMRT FUNC.

PM1=1 PM2=3*12 BAL=? 2697576

2nd

FIND THE INVESTMENT VALUES

SET=END N-3*4 I-9 PV-1000000 PMT-75000 QTY BASIS FV-? P/Y-4 C/Y-1

FV=? 2311053

NETWORTH=[2311053-2697576] -386523 Ans-A

ANS COMES IN NEG i.e LOAN BAL MORE THAN THE INVESTMENT AMT

## udaycfp said

Dear Pranav Raliya

Pls share the your question in exam if RAIP & IP

## udaycfp said

Dear Prashant sir & all friends

Pls give me suggestion what i can do for my RAIP exam

how to prepared ? what question come in exam? , which topic i read for RAIP exam ?

which book read ????????????????

pls reply asap

## Pranav Raliya said

just give me 1 more day till my RPEB exam i will share all d questions of RAIP…

is there any others questions which u may recall from your RPEB exam plzz,,,

## udaycfp said

Dear Pranav

1ST

1-find 50000 pm exps with inf rate 7.5% at age 60 = 304916

2-find RRR=7.5

3-FIND THE PV OF ALL FUTURE EXPS AT AGE OF 60

N-15*12 I-7.5 PV-? PMT- 304916 FV-0 P/Y-12 C/Y-1 PV=33595985

2ST HERE HIS LIFE EXPn increase by 10yrs after 75 age it means that he lives at age of 85

1-find 50000 pm exps with inf rate 7.5% at age 60 = 304916

2-find RRR=7.5

3-FIND THE PV OF ALL FUTURE EXPS AT AGE OF 60 BUT

N-25*12 I-7.5 PV-? PMT- 304916 FV-0 P/Y-12 C/Y-1 PV=42425234

find the short fall =42425234-33595985=8829249

my mistake is that i thing question is incomplete then i assumes 8% return but if question above that then we make assumes return is contents through both terms not take any other values but real rate of return is = inflation

Please solve the fpsb sample paper then go

best of luck

## udaycfp said

Dear Prashant sir, & friends

Pls help me out what i do for my RAIP exam i only have 15 days.

please help me out from these problem

thanking you

## udaycfp said

Dear Prashant Sir & all friends

i dont have more question on RAIP can anybody provides me that

Thanking you

## udaycfp said

Dear Prashant Sir & Friends,

I m facing problem in insurance plan calculation (tradition plan, ulip plans).

Pls help me out

Awaiting for yours kind reply

Thanks & regards

## Prashant Shah said

Which kind of problems do u face in this?

## udaycfp said

Dear Prashant Sir,

1. Mahesh & Neelam (Case Study E): In Moneyback Insurance plan co. has declared reversionary bonus of Rs.50/1000 SA per year for 1st 10 years and Rs.55/1000 SA per year for the succeeding years along with a company also declared loyalty addition of Rs.25/1000. Mahesh wants to know

1) Maturity value

2) In case of his death today, death benefit payable to his family.

2. Gurpreet (Case Study B): Gurpreet wants to know approx. Maturity value and return on investment of an Endowment Insurance plan. Assume Company has declared reversionary bonus of Rs.55/1000 SA Per year for first five years, Rs.60/1000 SA per year for next five years, Rs.50/1000 for the remaining term and also declared terminal bonus of Rs.325/1000 SA.

3. Mahesh:

Today 02/04/2013. Start Day of the ULIP 01/04/2007. Total Tenor 10 years.

Amount to be deposited per year – Rs. 35,000/-

Premium Allocation Charges – a) 1st year – 12%

b) 2nd year – 8%

c) 3rd year – 5%

d) 4th year onwards – 2%

Mortality rate charges – Rs. 775/- p.a. for all the years (Beginning of Year)

Fund Administration charges – 1.75% per year (end of year)

Misc. Charges – Rs. 500/- p.a. (Beginning of Year)

If the client stays invested for the entire period in Equity Fund what will be the return from the ULIP and maturity value?

like this question

but how they calc Diff. types bonus part & how they cal SA in money back plan

If a person dies in a year after qty 1st premium paid can insurer gives SA but less 3 anther qty premium why????

Pls help me out

Awaiting for yours kind reply

Thanks & regards

## rajesh said

Hi hello sir

I am mba finance & marketing graduate. I have planning to do cfp course regular pathway so kindly tell me full details and tell me each books with good author separately sir I want you contact details sir for enquiry please possible means kindly tell me.

## udaycfp said

Dear Prashantji sir

i have doubt of beg of months & end of month problem was here

why they use end mode calc PV

Example Rajesh is a 35-year-old man earning Rs. 4,00,000 per annum. Rajesh’s family consists of his wife (housewife), 4-year-old daughter and his retired parents who are now dependent on him. The net contribution made by Rajesh to the family is Rs. 25,000 per month (Rs. 3,00,000 per annum) after deducting taxes and personal expenses. Let’s assume that Rajesh’s salary will increase by 5% every year and his family contribution (Rs. 3,00,000) will also increase by 5% every year.

Annual income Rs. 4,00,000 per annum &YQFDUFESJTFJOTBMBSZ 5% p.a. Net income after taxes and personal expenses Rs. 3,00,000 per annum Current age 35 years Remaining working years 25 years Future value of earning potential Rs. 1,43,18,129 Discount rate (PPF Rate) 8% Present value of future earnings Rs. 20,90,703

Rajesh’s worth to his family is Rs. 1.43 crore over his remaining working life if he survives until he is 60 years old. But if something happens to Rajesh today, his family stands to lose this money. We need to ﬁnd the value of this Rs. 1.43 crore as at today. So if we take the discount rate as 8% (risk-free PPF rate) then the value of Rs. 1.43 crore as at today equals Rs. 20,90,703 (Rs. 20.90 lakhs). This effectively means that a one-time amount of Rs. 20.90 lakhs invested at 8% interest rate for 25 years will yield Rs. 1.43 crore on maturity. Therefore the ﬁgure of Rs. 20.90 lakhs is Rajesh’s human life value (HLV) and he should take out life insurance cover of Rs 20.90 lakhs to protect his future income.

## udaycfp said

Dear sir,

i appeared for exam of RAIP i failed.

pls give your advice ??????????????

Thank & Regards

Uday

## Prashant Shah said

Dear Uday,

Insurance exam is the easiest. I am surprised!

Pls tell me what went wrong.

Regards.

## udaycfp said

Dear Sir,

I am good in life insurance but not general insurance for me,

In General insurance problem like restatement value , insured value & claim amt find out i stuck between.

Because in my class they never solve such kind of sum & they don’t have such kind of sum

i want more theory about how to solve that types of question,

Please show me the path please

Sir u are right that insurances Exam easiest

My next is IP, Pls give me suggestion.

Regards.

Uday

## udaycfp said

Dear Sir,

Which books reading is best for Investment Exam preparation.

Please tell me asap

Regards.

## Prashant Shah said

U may pick up Mandar books and solve questions on the site.

## rahul2008mohanahul said

Hello Prasanth sir & friends

Im appearing tax planning in the coming month can any one please post some questions which are recently asked in the exam and the topics to read?

Looking for an early reply

Thanks in Advance

## rahul2008mohanahul said

Hello,

Can some body post the tax questions who cleared recently that would help me to clear the exam Thanks in advance

## Prashant Shah said

Dear Rahul,

Colleting tax questions it the toughest task to perform. However I will inquire the same from the friends who have recently cleared the same exam.

Feel free to ask your doubts.

Regards,

Prashant.

## Darshan said

Prashant Sir,

Can u tell in RPEB in theory which topics are normally tested, so that I can study them in depth

## udaycfp said

Dear Prashant Sir,

I pass IP exam,

Pls help me in clearing Tax Planning

Regards

Uday

## Prashant Shah said

Dear Uday

Many congratulations for the success.

Share some of the questions u had in the examination.

Regards

Prashant.

## udaycfp said

Dear Prashant Sir,

Pls give me advice for Tax & Estate planning

what i read & from where , what question can be come in exam

There is any TAX question on your site. my exam in the 3 week of Dec months

Pls reply asap

Thank

Regards

Uday

## Darshan said

Congratulations Uday!

If u have given the retirement exam can u plz share some questions if u remember.

Thanks in advance

## udaycfp said

Dear Darshan

This q come in my RPEB exam

IF you want ans pls check above udaycfp comments u will get it that

best of luck for your exam

Q1] 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%) Marks 3

A)1.81 crore, B)1.89 crore, C)1.87 crore, D) 1.83 crore.

Q2] 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%).

Q3] 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?

Q.4] An individual opened PPF account on 1st April 2007. The amount outstanding in his account

on 31st March 2013 was Rs. 4,93,564. If he had a balance of Rs. 2,45,428 on 31st March 2010,

what amount can he withdraw and from which date?

Q.5] An annuity product is designed in such a way that it gives first cash flow at 4% of the corpus at the end of first year and thereafter every year in the form of growing annuity at the rate of 5%. If the cash flows are guaranteed for 20 years, what rate of return is obtained on the corpus invested?

Q.6] An individual has recently purchased a house worth Rs. 50 lakh for self-occupation by availing housing loan of Rs. 30 lakh at 10% p.a. rate of interest. The tenure of loan is 15 years. He has Rs. 10lakh financial assets at present. He is expected to save annually Rs.3 lakh which he invests on a quarterly basis beginning a quarter from now in an instrument which is expected to provide return of 9% p.a. What would be his net worth 3 years from now? The value of the house which is for consumption purposes is not considered in the net worth so arrived.

[ans comes in negative]

A) 3.88 crore, B) 1.85 crore, C) 4.22 Crore, D) 4.53 Crore..

## Darshan said

Thanks Uday

Can u share some 1 & 2 marks questions from retirement exam if u remember any

## udaycfp said

Dear Darshan

Pls refer on the site question on RPEB exam

## vijaya1988 said

Dear Sir

I am vijaya from pune. i jonit cfp class

but i cleared only my one exam IP exam

can u help me for clearing my exam which are pending ????

Thank you

## vijaya1988 said

Dear SIr

I want to give tax planning exam

which type of question come in exam

Thank you

## hepguy85 said

Dear, Some questions from IP and you need to go through fpsb questions. Simple questions of tax planning will come. On Dec 7, 2015 7:41 PM, “Prashant V Shah, Kaivalya School of Learning,

## vijaya1988 said

Dear Sir,

what For tax planning F.Y & A.Y OR P.Y.

Which rates i am considering in exam paper before MARCH 2016

Thank you,

## rahul2008mohan said

Hello Team,

can anybody come up with taxplanning concepts, questions Weightage of marks Plz keep posted me .Thanks in Advance all

## Darshan said

Dear Prashant Sir,

Today I cleared Retirement Planning Exam. This blog has helped a lot to clear the exam. Thank you.

I will be appearing for Final module just want to know how to prepare for the final module and wat all things to give importance to?

Thanks once again

## R Varadarajan said

Congratulations !!!

## Darshan said

Thank u

## Prashant Shah said

Dear Darshan

Many congratulations for crossing an important milestone. Wish u all the luck for the rest and keep helping other aspirants.

Warm regards

Prashant.

## ADITYA said

Sir i m a CA qualified n want to pursue CFP but didnt have sufficient monry for paying clsss fees and study materials cost. Can any one help me out with atleast study materials. I will do self study then.

Please consider it sympathetically

Thanks

## Prashant Shah said

Dear Aditya,

If you belong to Ahmedabad come to my institute, I will teach you at concession. And of course you are a CA, you will certainly earn more. Don’t ask for so many favors from others as this program is difficult to complete at your own.

Regards,

Prashant.

## Vinayak Savanur said

Hi,

I have recently cleared my CFP CERTIFICATION. I am looking for the opportunities in Financial Planning. Please let me know if you come across any.

Regards,

Vinayak.Savanur

## rahul2008mohan said

Dear ALL/Vinayak

Can you plz share some questions related to tax planning preparation.

Thanks in Advance

## vijaya1988 said

Dear Sir/ ALL

i want give insurance exam but on your site IC 34 & 33 WAS 2011 EDITION

I go through site of IRDA there was new edition of 2015 ic 33 & 34

Which can i go through pls suggestion needed

Pls reply asap

Thanks you

## Prashant Shah said

You should go through latest versions.

## vijaya1988 said

Dear Sir/ ALL

I am going through latest version IC 33 & IC 34

but there is problem of Health insurance

They given in both IC 33 & 34 brief of Health Insurance topics are same below. I am confused health insurance is part life insurance OR Non life Insurance OR BOTH.

Topics list

Health Insurance

I. Introduction To Health Insurance

II. Health Insurance Products

III. Health Insurance Underwriting

IV. Health Insurance Claims

Pls reply asap

Thanks you

## Suresh said

Hello sir,

i could not found those old case study for AFP. Where should i go?

## Prasanna said

Sir i want more practice problms as i am appearing for insurance module i think u will help me abt dis

## nirav navadiya said

Sir can you please mail me the importance of tax planning and estate planning this time im giving my 3rd attempt …please help me sir!

## vijaya1988 said

Dear Nirav

can details problem face in exam or question

i am also going for exam 3 time

we can slove some problem from your site & my

you taken any class tell me

Thank you

## vijaya1988 said

Dear nirav

please reply asap

## rahul2008mohan@gmail.com said

Dear Nirav/Vijaya

1.Q. trust is created for benefit of relatives of venture capital shares of 4

beneficiaries are 40% , 25%,20%,15%. while they are assessable

respectively in tax slab on 10% 20% 20% 30%. beneficiary in 10% tax slab

has income from trust only. tax on 2nd beneficiary is 20% braqcket exceeds

previous slab by 80000 pursunant to receiving income from trust. total

income is 8.5lacs to be distributed among year. what would be tax payable

by trustee on account of trust in that year: 123750,75000,148750,114750.

2.your client age 40 has a self occupied and 2nd house with combine market

value of rs. 1.20 cr . combined outstanding loan on properties is 65 lacs. he

also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd @ 10% of

rs. 1.5lacs maturing 2 yrs frm nw and saving account balance of rs 40000.

endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term

cover is 15 lacs. he has employee benefits currently value rs. 39 lacs in

exigency life. you estimate value is : 10140000,

15574650,16264650,22746500

3.A management college professor retired from her service on 1st March

2013 at the age of 60 years. She had accumulated a balance of Rs. 1.25

Crore in her retirement account. She also received gratuity from the college

under the Payment of Gratuity Act. She commuted the tax exempt value of

her retirement fund. The rest of the amount was utilized by her college to

buy her a 25-year fixed annuity deferred by a year and paid annually

thereafter. If the effective yield from such annuity product were 7.5% p a.,

and she is willing to save the maximum permissible amounts under Section

80C and 80D, what tax liability do you estimate for her for AY2015-16?

4.Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share

on 25th April 2007. The company allotted rights shares at Rs. 245 per share

in the ratio of 1 share for every 2 shares held by investors on 18th January

2010 which was subscribed by Mr. A. The company got listed on 1st March

2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market

transaction on 1st February 2014. Find the capital gains in the transaction.

(Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and 2014-2015:

932)

5.Mr. A redeemed the entire units of a debt oriented Mutual Fund on 31st

December 2013 at Rs. 22.16 per unit. He originally purchased 3,500 units at

a price of Rs. 17.47 per unit under dividend reinvestment option on 4th

December 2010. He received dividends of 20%, 18%, 17% in this period on

his outstanding units which were reinvested respectively at NAVs of Rs.

19.43, Rs. 20.91, Rs. 22.61 in the month of November in the years 2011 to

2013. What is the tax treatment of these transactions for AY2015-16. (Cost

inflation index for 2010-11: 711; 2011-12: 785; 2012-13: 852; 2015-16

:1024)

6.a person taking hoam loan for his SOP property on 1/april/2013 how much

deduction he can take under income from house property

7.a person taken hoam loan and educaation loan ,he paid 30000 as principal

13000 as interest aganist hoam loan and 18000 as principal and 8000 as

interest against education loan ,what whould be deduction u/s 80C and 80 E

?

8.an assesse lives his parent from 1/auguest/2013 he takes a rent

accommodation for this he is paying 10000 pm his basic salary is 240000

and HRA received by him 2500 pm ,wwhat is his taxable HRA

9.Mr. R acquires a house on 10 Oct 1974 for Rs 10 lacs. Paid 10k for

registration. He spent Rs 50k on 15/03/1980 and Rs 80k on 15/6/99 for

improvement of the house. He sold the house on 25 oct 2011 for Rs 25 lacs

and paid brokerage of 2% on sale price. Calculate capital gains for 12-

13.Assume fair mkt value on 1/4/1981 as Rs 2lacs.CII 81-82 100, 99-00

389, 11-12 785

10.Mrs. X sold 2Kg of gold at Rs 47 lacs on 28/04/11 which she purchased in

2007.Cost of acquisition was Rs 26.38 lacs.She purchased a new house on

13 may 2011.Compute capital gains exempt under sec 54F for 12-13.

a) 3lacs

b) 23.62lacs

c) 0

d) 20.62lacs

11.Mr. Prabhakar age 38 and Mrs. Prabhakar age 35 both are working and

earning yearly salary of Rs 7.5lacs and Rs 4.5lacs respectively.MrPrabhakar

gifts his wife Rs 10lacs from his savings on 1/4/11.Mrs Prabhakar deposits

the same in bank @ 9% pan interest. An FD of Rs 50k @8.5% pa is also held

in the name of minor son of Mr.Prabhakar which is gifted by his grandfather

on 1/4/11.further Mr. and Mrs. Prabhakar have deposited Rs 1 lac and Rs

80k respectively in their PPF accounts in 11-12.What is their individual tax

liabilities for 12-13?

a) Mr. Prabhakar Rs 64740 , Mrs. Prabhakar Rs 27810

b) Mr. Prabhakar Rs 82970 , Mrs. Prabhakar Rs 18540

c) Mr. Prabhakar Rs 64430 , Mrs. Prabhakar Rs 27810

d) Mr. Prabhakar Rs 83280 , Mrs. Prabhakar Rs 18540

12.Your client, a businessman has a house worth Rs. 2.1 crore and a farm

house worth Rs. 85 lakh. His business is worth Rs. 10 crore as per last

balance sheet. His

He and his wife is one of the partner in the business having stakes of 20%

each . He has two cars purchased at Rs. 40 lakh and Rs. 20 lakh, the latter

being in personal account. The cars

have depreciated/market value at Rs. 30 lakh and Rs. 8 lakh, respectively.

His wife has stock worth Rs. 1.65 crore in a Demat account where she is the

primary holder.

The business has taken Keyman’s insurance on his life of value Rs. 1.5 crore.

He has himself insured his life for an assured sum of Rs. 1.5 crore. You

evaluate your

client’s estate in case of any exigency with his life as _____

13) RCF is trading @ rs 50. it pays dividend of rs 3.5. dividend growth is

projected @ 5% & required rate of return is 12%. find value of stock &

ascertain whether it is undervalued or overvalued?

A. stock value rs 52.5/ undervalued

B. stock value rs 58.3/undervalued

c. stock value rs 38.3/ overvalued

D. stock value rs 45.2/ undervalued

14) A house property in Kolkata having a municipal value of rs 5lac, fair

rental= 6lac was intended to let out to tenants. Unfortunately during PY

there was no tenant for this house property. Municipal tax is rs 5000 ( of

which rs 1200 is payable) Int paid on loan taken for purchase of property is

rs 179000. what is d incone from h/p ?

(a) loss of 153500

(b) income of 153500

(c) loss of 182500

(d) nill

15.Mr.Rajagopalan buys 10000 units of debt oriented MF @ Rs 18.37 on

24/04/13 under dividend reinvestment option. The scheme gave a dividend

of 20% and the record date was 30/4/13 and ex dividend nav of Rs

16.85.He sold original units @ Rs 16.61 on 21 oct 13.The purchase and

repurchase prices of growth option on the same scheme were Rs 27.31 and

Rs 28.13 on 24/4/13 and 21/oct/13.Calculate for 13-14 the nature of capital

gains and difference he invested in growth option?

16)Mrs. X sold 2Kg of gold at Rs 47 lacs on 28/04/11 which she purchased in

2007.Cost of acquisition was Rs 26.38 lacs.She purchased a new house on

13 may 2011.Compute capital gains exempt under sec 54F for 12-13.

a) 3lacs

b) 23.62lacs

c) 0

d) 20.62lacs

What was the cost of new house?

17.The average inflation over the last three years is 5.5 % p.a. You invested

Rs. 4 lakh in a security 8 years ago which you have redeemed for Rs. 8 lakh.

What real return have you obtained from investment?

18.Pramod redeemed entire units of debt oriented mutual fund on 31

December 2011 at Rs 22.16. He originally purchased 3500 units at Rs 18.27

during 2007-08 .He received dividends of 18% 20% 18% 17% in this period.

He reinvested the same by Rs 19.15, Rs 20.06, Rs 21.11, Rs 21.81 at last

[…]

19.your client age 40 has a self occupied and 2nd house with combine

market value of rs. 1.20 cr . combined outstanding loan on properties is 65

lacs. he also has invested rs 40 lacs, bullion worth rs 4.5lacs, tax saving fd

@ 10% of rs. 1.5lacs maturing 2 yrs frm nw and saving account balance of

rs 40000. endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs

and term cover is 15 lacs. he has employee benefits currently value rs. 39

lacs in exigency life. you estimate value is : 10140000,

15574650,16264650,22746500

20.a person taken hoam loan and educaation loan ,he paid 30000 as

principal 13000 as interest aganist hoam loan and 18000 as principal and

8000 as interest against education loan ,what whould be deduction u/s 80C

and 80 E ?

Im also appearing for tax if we can solve together that would be helpfull

## rahul2008mohan@gmail.com said

Mr. Arun invested rs 80000 in debt oriented mutual fund on 31st December 2014 at Rs 15.21 per unit in

the year 2011-2015 under dividend reinvestment option . He received dividend 18 % in 2012 and 20% in

2014 on his outstanding units which were reinvested at NAV of Rs. 17.16, and Rs. 19.10, at the last

business day of 1st December. Compute the taxable Income for this transaction i f he sold the units in

December 2015 at rs 22.15.

Q. Business and profession question on agriculture income ,in which assesse was having income from

crop grown in Nepal(70000) and income from crop grown in India (60000).also in addition to that

assessee was getting income as share of profit and interest on capital from partnership firm engaged in

agriculture production. Further assessee also has a loss (100000) from sale of tea leaves in the same

previous year.

your client age 40 has a self occupied and 2nd house with combine market value of rs. 1.20 cr .

combined outstanding loan on properties is 65 lacs. he also has invested rs 40 lacs, bullion worth rs

4.5lacs, tax saving fd @ 10% of rs. 1.5lacs maturing 2 yrs frm nw and saving account balance of rs 40000.

endowment policy of sum assured rs 5 lacs with bonus 1.75 lacs and term cover is 15 lacs. he has

employee benefits currently value rs. 39 lacs in exigency life. you estimate value is : 10140000,

15574650,16264650,22746500

Mr. A purchased 1,000 shares of an unlisted company at Rs. 983 per share on 25th April 2007. The

company allotted rights shares at Rs. 245 per share in the ratio of 1 share for every 2 shares held by

investors on 18th January 2010 which was subscribed by Mr. A. The company got listed on 1st March

2013 and Mr. A sold 1,400 shares at Rs. 1,975 per share in off-market transaction on 1st February 2014.

Find the capital gains in the transaction. (Cost Inflation Index for FY 2007-08: 551; 2009-10: 632 and

2014-2015: 932)

Mr. A redeemed the entire units of a debt oriented Mutual Fund on 31st December 2013 at Rs. 22.16

per unit. He originally purchased 3,500 units at a price of Rs. 17.47 per unit under dividend reinvestment

option on 4th December 2010. He received dividends of 20%, 18%, 17% in this period on his outstanding

units which were reinvested respectively at NAVs of Rs. 19.43, Rs. 20.91, Rs. 22.61 in the month of

November in the years 2011 to 2013. What is the tax treatment of these transactions for AY2015-16.

(Cost inflation index for 2010-11: 711; 2011-12: 785; 2012-13: 852; 2015-16 :1024)

Mr. R acquires a house on 10 Oct 1974 for Rs 10 lacs. Paid 10k for registration. He spent Rs 50k on

15/03/1980 and Rs 80k on 15/6/99 for improvement of the house. He sold the house on 25 oct 2011 for

Rs 25 lacs and paid brokerage of 2% on sale price. Calculate capital gains for 12-13.Assume fair mkt

value on 1/4/1981 as Rs 2lacs.CII 81-82 100, 99-00 389, 11-12 785

Mrs. X sold 2Kg of gold at Rs 47 lacs on 28/04/11 which she purchased in 2007.Cost of acquisition was Rs

26.38 lacs.She purchased a new house on 13 may 2011.Compute capital gains exempt under sec 54F

for 12-13.

a) 3lacs

b) 23.62lacs

c) 0

d) 20.62lacs

Mr. Prabhakar age 38 and Mrs. Prabhakar age 35 both are working and earning yearly salary of Rs

7.5lacs and Rs 4.5lacs respectively.MrPrabhakar gifts his wife Rs 10lacs from his savings on 1/4/11.Mrs

Prabhakar deposits the same in bank @ 9% pan interest. An FD of Rs 50k @8.5% pa is also held in the

name of minor son of Mr.Prabhakar which is gifted by his grandfather on 1/4/11.further Mr. and Mrs.

Prabhakar have deposited Rs 1 lac and Rs 80k respectively in their PPF accounts in 11-12.What is their

individual tax liabilities for 12-13?

a) Mr. Prabhakar Rs 64740 , Mrs. Prabhakar Rs 27810

b) Mr. Prabhakar Rs 82970 , Mrs. Prabhakar Rs 18540

c) Mr. Prabhakar Rs 64430 , Mrs. Prabhakar Rs 27810

d) Mr. Prabhakar Rs 83280 , Mrs. Prabhakar Rs 18540

Determine the net income of X and Co for the assessement year 2014-15 asssuming that long term

capital gain is rs 40000 and the firm is elgible for deductions of rs 5000 under section 80G. The firm has a

brought forward loss of rs 240000(Previous year 2010-11)of a trading which has been discontinued

A purchase 10000 units on 20/April/2013 for 18.2136 under the dividend reinvestment option record

date is 24/April/2013

dividend declared on unit his ex-dividend NAV price 16.1250 he sale all his unit on 20/December/2013

for 17.6213 ,what is the capital gain on these transaction

Mr. A redeemed the entire units of a debt oriented Mutual Fund on 31st December 2013 at Rs. 22.16

per unit. He originally purchased 3,500 units at a price of Rs. 17.47 per unit under dividend reinvestment

option on 4th December 2010. He received dividends of 20%, 18%, 17% in this period on his outstanding

units which were reinvested respectively at NAVs of Rs. 19.43, Rs. 20.91, Rs. 22.61 in the month of

November in the years 2011 to 2013. What is the tax treatment of these transactions for AY2015-16.

(Cost inflation index for 2010-11: 711; 2011-12: 785; 2012-13: 852; 2015-16 :1024)

A house property in Kolkata having a municipal value of rs 5lac, fair rental= 6lac was intended to let out

to tenants. Unfortunately during PY there was no tenant for this house property. Municipal tax is rs 5000

( of which rs 1200 is payable) Int paid on loan taken for purchase of property is rs 179000. what is d

incone from h/p ?

(a) loss of 153500

(b) income of 153500

(c) loss of 182500

(d) nill

Mr.Rajagopalan buys 10000 units of debt oriented MF @ Rs 18.37 on 24/04/13 under dividend

reinvestment option. The scheme gave a dividend of 20% and the record date was 30/4/13 and ex

dividend nav of Rs 16.85.He sold original units @ Rs 16.61 on 21 oct 13.The purchase and repurchase

prices of growth option on the same scheme were Rs 27.31 and Rs 28.13 on 24/4/13 and

21/oct/13.Calculate for 13-14 the nature of capital gains and difference he invested in growth option?

Pramod redeemed entire units of debt oriented mutual fund on 31 December 2011 at Rs 22.16. He

originally purchased 3500 units at Rs 18.27 during 2007-08 .He received dividends of 18% 20% 18% 17%

in this period. He reinvested the same by Rs 19.15, Rs 20.06, Rs 21.11, Rs 21.81 at last […]

trust is created for benefit of relatives of venture capital shares of 4 beneficiaries are 40% ,

25%,20%,15%. while they are assessable respectively in tax slab on 10% 20% 20% 30%. beneficiary in

10% tax slab has income from trust only. tax on 2nd beneficiary is 20% braqcket exceeds previous slab

by 80000 pursunant to receiving income from trust. total income is 8.5lacs to be distributed among year.

what would be tax payable by trustee on account of trust in that year: 123750,75000,148750,114750

## vijaya1988 said

Dear Prashant Sir,

Can u please upload current tax slab A.Y. 2016-2017

i dont have current & i don’t believe any site to give me correct tax rates slab

i upload many but they same A.Y. rates are different

Please give me link of site or upload the pdf files.

Thank in advance

## Prashant Shah said

Okay

## Prashant Shah said

Request you to not to collect and share mail addresses from/ of the readers.

Regards.

Prashant.

## vijaya1988 said

ok

## Prashant Shah said

You can share anything you want to be displayed directly to me. My maid address is there in about page.

## vijaya1988 said

Dear sir

it OK please me some time i must share some thing to you

please give TAX RATE F.Y.2015-16 A.Y.2016-17

ASAP FOR YOU

Thank in advance

## rahul2008mohan said

Hello,

Can any one post the solutions for the above mentioned questions to verify

## vkum016 said

Dear Rahul

please solve the sum of question above i will check

i am also preparing for exam i have also no time to check

i will correct with you

## Shruti said

Hello, i am been appearing for my first exam i.e tax module..can plz anyone guide wht kind of question i should refer?

## rahul2008mohan said

I’ve cleared the taxplanning on 7th jun prasanth sir

## Prashant Shah said

Many congratulations.

## Prashant Shah said

You can share the questions which you have memorized.

## rahul2008mohan said

Paper Contains the following concepts.

1. Questions related to Income from house property(5-10)Marks

2. Questions on CG(Bonusshares/RightShares/BuyBackShares)

3.Questions on Deductions(Sec54f/Sec80dd/Sec44AD)

4.Dividend stripping

5.Divident Reinvestment

6. Estate Planning Theory

7. Residential Status

Aforesaid pattern questions carries nearly 40m in the paper and the paper was bit tough compared to past FPSB Raised the standard.

I’ve remembered few questions which ill post later

Prasanth sir can you pls help me with the final module preparation? How to start and the conceptsinvolved and where can i find the related knowledge in blog

## Prashant Shah said

Great. It’s a great help.

## rahul2008mohan said

Prasanth sir can you pls help me with the final module preparation? How to start and the conceptsinvolved and where can i find the related knowledge in blog

## rahul2008mohan said

Prasanth sir can you pls help me with the final module preparation? How to start and the conceptsinvolved and where can i find the related knowledge in your blog

## Ajay Kapare said

Hii Sir,

I am Ajay.

Doing MBA(Fin.) & enrolled for fpsb.

I joined ICFL Mumbai attend lectures and give RPEB model.

Not cleared in 1st attempt

I want the tips for 4 mrks questions and how to reduce time..

Thank You

Ajay Kapare

## Sumit said

I want to prepare for raip and investment planning need help! How to prepare

## Ajay Kapare said

Hiiii Sir,

Please suggest an best book for FPSB 4 Marks question books for All modules.

Please send the link if any?

Thank You,

Ajay

## Kshitiz said

Sir I want the list of books to be purchased for regular program?

## RahulThukral said

Hi Sir,

Can you please help me with lecture videos of IP and Retirement planning so that it could help me in better understanding of the module as I am facing difficulties in this both subject or else can you guide me with materials book so that I can prepare well for this two subjects

## RahulThukral said

you have not given any reply sir?

## Prashant Shah said

Dear Rahul,

I can not provide all my lecture videos on this site as everything has a price. As of now I don’t sell any material or video as that’s the facility extended only to students who enroll with my institute.

The videos I posted are just for reference and to have a feel of how do we teach at our institute. However I will randomly keep on uploading videos of different topics.

Regards.

Prashant.

## RahulThukral said

sir can you please provide my your study material and mock papers for the modules because i can’t enroll as your institute is in Ahmadabad and I am in Delhi it would be better provide me material and mock paper I am ready to pay for it this is a best alternative in my mind if you have some other alternative so please tell me.

## RahulThukral said

Sir your response is awaited as I am facing problems that’s why I need your help.

## Prashant Shah said

Dear Rahul,

I understand your concern but as of now I don’t have any book nor video available for sale. You can keep reading this site and ask the questions.

Regards,

Prashant.

## hemareddy said

hello sir, i taken investment planning exam 2 times but i didn’t passed, im so confusing in exam about the questions asked and im not not able to understand the problem how they asked, and the time is not sufficient for me in exam, plz help me sir, hw can i prepare for exam, and im going to take my investment planning test on 8th dec 2016

## RahulThukral said

Hi Sir,

Could you please tell me that for tax planning exam when slabs would get changed and if I planning to give exam in month of feb what assessment year we have to follow

## satish said

Hi sir,

Myself Satish , a working CA professional with 3 years of experience in accounting. Now I’m looking to pursue CFP to grow my career aspects as well as knowledge on personal finance. Could you please suggest which way is better for me ie. Regular pathway or challenge status way and the materials I can refer which provides me a sound knowledge apart from the examination perspective as well?

Also would like to know the frequency of the exams and the career opportunities.

Many thanks!

Satish

## ashok said

Regular pathway is best sir

## Prashant Shah said

Dear Satish,

You should take challenge mode for CFP.

Exam for the same is online on demand hence it can be taken up anytime. For you best career opportunity lies with your own practice.

Regards,

Prashant.

## Kartik narang said

Greetings sir.

I had come across this question during my exam please can u provide solution for this question

Q.1 . An annuity product AA at rs 8640 p.a per lakh rs of purchase value offer annuity for life with a provision of 50 % of annuity payable to spouse during his/her life time on death of the annuitant , another annuity BB at rs. 7010 per annum per lakh rs of purchase value offer annuity for life with a provision of 100% of annuity payable to spouse during his/her lifetime on death of annuitant along with return of purchase price on the death of last survivor. Today your client and his spouse have respectively 20 years and 25 years more expected life. You estimate the returns provided in AA and BB to arrive at right selection for your client as annuity.

Ans

A. AA better 41 basis points per annum better return than BB

B. BB offer 15 bps p.a better return than AA

C. BB offer 84 bps p.a better return than BB

D. AA its excess cash flow invested at conservative 8 % p.a gives higher value than the purchase price after matching cash flow of BB

Q. 2. You are analysing net worth statement of your client. She took a car loan of 8 lakh @ 12% p.a three years ago and a personal loan of rs 3 lakh @ 18 p.a a year ago. There are 2 more years remaining in the tenure of both the loans. She gets a wind fall of rs 6 lakh . She ask you whether to invest this in bank Fd @ 9% p.a for 2 years . You advice her to repay both loans and invest the amount of EMI’s systematically every month in tax efficient market oriented security. You estimate in a return band of 8-10% her revised net worth with lower tax incidence after 2 yrs . If she adheres to your advices her net worth may rise b/w

A. 73000 to 91000

B. 32000 to 46000

C. 28000 to 41000

D. 37000 to 52000

It will be a great help because i will be appearing on 25/3/17. Please help with these 2 ques sir.

## kartik narang said

sir can u plz help me out , only 2 days are left for exam sir

## Varadarajan Raghunathan said

Q.1 You have to find IRR for both the options, with outflow of Rs100000 with inflow of Rs.8640 for 20 years & 4320 for 5 years and @7010 for 19 years and 107010 for the 20th year. You will get IRR of 6.53% and 7.01% which will not match with the answers.Then take up the difference between the cases which will be +1630 for 20 years and -2690 for the next 5 years. If you find the FV of these payments which would be more than 100000 which in turn matches with the answer(d).

## Varadarajan Raghunathan said

Q2.

Car Loan Per Loan

Loan 800000 300000

ROI 12% 18%

Tenure Yrs 5 3

EMI 17,796 10,846

PV now 3,78,038 2,17,244 Total Balance Rs. 5,95,282, to be cleared with the windfall receipt of Rs.6.00 Lakhs

Total EMI Rs. 28,641 FD rate 9%

FV @8% Rs. 7,40,734.56 Amount Rs. 6,00,000 Rs. 27,874.56

FV@10% Rs. 7,54,271.66 FV Rs. 7,12,860.00 Rs. 41,411.66

## Varadarajan Raghunathan said

Car Loan Per Loan

Loan 800000 300000

ROI 12% 18%

Tenure Yrs 5 3

EMI 17,796 10,846

PV now 3,78,038 2,17,244 Total Loan Balance 5,95,282 Will be closed now

Total EMI 28,641 FD rate 9%

FV @8%through SIP 7,40,734.56 FD Amount 6,00,000 Rs. 27,874.56

FV@10% ” 7,54,271.66 FV 7,12,860.00 Rs. 41,411.66

Difference between the FV through SIPs and FD FV will be 740735-712860 = 28875 or 754272-712860=41412

say 28000 to 41000

Answer will be Rs.28000 to 41000

## Prashant Shah said

Thanks Varadarajan.

## Salam said

yesterday I cleared AfP module

## Prashant Shah said

Dear Salam,

Many congratulations for the grand success. Wish u a fantastic career ahead. And also keep helping others to become CFP.

Prashant.

## ishwarya said

hello salam, iam ishwarya, iam also preparing for afp. in which topics i concentrated more to complete afp.

## Prashant Shah said

Dear Iswwarya,

Have seen video on how to prepare AFP?

Regards.

## Salam said

Thank you sir

## Varadarajan Raghunathan said

Well done. Salam. Congratulations on you clearing the AFP module. Please could you update us with the questions you got in the exam for the benefit of others.

## alikhan shaik said

Hi , This is alikhan , doing CFP course . do u provide important questions question banks for the modules .

## Akhil Jain said

Hi,This is Akhil . can anybody provide me the AFP Case studies( apart from fpsb sample papers) questions with solutions

## Prashant Shah said

Dear Akhil,

There are no such case studies available. However, i have uploaded some of the questions which are shared by students.

Regards.

## Anupam Roongta said

Hi Prashant,

I am taking CFP Challenge Status exam on 22 Aug. Is there any crash course available for this?

Regards,

Anupam Roongta

## SANIKA said

THIS IS FROM FPSB INDIA SAMPLE PAPER OF RAIP

An entrepreneur setting up a leather processing unit purchased a land in 2006 for Rs. 50 lakh and got specialized construction done in 2007 for Rs. 1.6 crore. In March, 2008 the processing plant was constructed at a cost of Rs. 2 crore. The cost of such construction and plant are escalating at 10% p.a. The corrosive nature of chemicals requires depreciation on plant as well as premises at 15% p.a. on written down value basis. As in 2013, what additional reserves should be created by the company apart from depreciation reserves and the residual insured value of plant and premises to reinstate the facility in case it is destroyed in a calamity?

solution :

Cost of land 5,000,000

Rs. Construction cost of premises 16,000,000

Rs. Construction done in 2007 Cost of plant & machinery 20,000,000

Rs. Plant installed in 2008 Depreciation rate on w-d-v method 15% p.a. Escalation cost 10% p.a. Year of reinstatement considered 2013

Current cost of reinstatement or premises 28,344,976 Rs. 16000000*(1+10%)^(2013-2007)

Current cost of reinstatement of plant 32,210,200 Rs. 20000000*(1+10%)^(2013-2008)

Total cost of reinstatement of the facility 60,555,176 Rs. 28344976+32210200

Depreciation reserves charged on premises in the B/S 9,965,608 [ Rs. 16000000-(16000000*(1-15%)^(2013-2007)) ]

Depreciation reserves charged on plant in the B/S 11,125,894 [ Rs. 20000000-(20000000*(1-15%)^(2013-2008)) ]

Total reserves on premises and plant 21,091,502 [ Rs. 9965608+11125894]

Residual Insured value of the plant 14,908,499 Rs. (16000000+20000000)-21091502

Therefore, additional reserves to be created 24,555,176 Rs. 60555176-21091502-14908498

Can you please explain why the depreciation rate is consider on the amount of installation and not the present value(2013) , since in the question given below it is consider on the present value ?

A training institute bought 50 computers at a total cost installed for Rs. 25 lakh. The set up came into operation on 1st April, 2012. The cost of a similar new computer in due course declined to Rs. 42,000. The industry norm of the depreciation charged on the computers is 30% on written down value basis. At what appropriate value he should insure the set up on next due date 1st April, 2013

SOLUTION

Cost of acquisition of computers- 1st April, 2012 2,500,000

Depreciation charged 30% p.a.

Current replacement cost 2,100,000 [ Rs. 42000*50 ]

Appropriate value to be insured 1,470,000 [ Rs. 2100000*(1-30%) ] .

Please can you explain in detail the difference between the two and why the method differs ?

## Prashant Shah said

Dear Sainika,

Both the questions are of different methods.

First one being question of normal depreciation provision while

Second one is the question based on market value method of claim settlement.

So there is a difference.

Feel free to ask further.

Regards.

## nikita said

sir, i m about to appear for tax planning module in october 2017. kindly tell me whether we have to calculate income tax as per updated rates or old rates. if updated any please send me the same

## Prashant Shah said

Hi Nikita,

The applicable financial year in tax planning is 2016-17 or assessment year of 2017-18.

Regards.

## ishwarya said

hello sir, iam preparing for afp module, please post any important topics related to advanced finanacial planning module

## ishwarya said

is there any one attempting AFP exam? or cleared this module?

## Rinku Datta said

Hi Prashant, if I need to calculate the retirement corpus for an individual for the next 30 years, what is the realistic rate of inflation that I can assume?

## Rinku Datta said

Along the same lines…what would be a realistic inflation rate for education esp if the child needs to be sent abroad for studying?

Thanks