FPSBI/M-VI/04-01/09/WN-12

1)

Solutions - Anamika
C)

2)

C)
No of Years Animesh age
1
2
3
4
5
6
7
8
9
10

3)

RF Rate
amount p.m
12
13
14
15
16
17
18
19
20
21

Anaida age
2500
2500
2500
2500
4000
4000
4000
4000
4000
4000

7.50% Monthly
amount
14
15
16
17
18
19
20
21

0.6045% PV at their starting today

Total pm
2500
2500
4000
4000
4000
4000
4000
4000
0
0

A)
Original Investment=
Interest after 3 months=
TDS on interest @10.30%=

500000
12500
1288

500000*0.025
12500*0.103

Balance CF to next 3 months=

Interest after 3 months=
TDS on interest @10.30%=

511213
12780
1316

500000+12500-1288
511213*0.025
12780*0.103

Balance CF to next 3 months=

Interest after 3 months=
TDS on interest @10.30%=

522676
13067
1346

511213+12780-1316
522676*0.025
13067*0.103

Balance CF to next 3 months=

Interest after 3 months=
TDS on interest @10.30%=

534397
13360
1376

522676+13067-1346
534397*0.025
13360*0.103

Total In hand maturity=

546381

each

4)

B)

5)

A)

6)

A)
FV of investment in NSC
amount invested in MF
Required rate to match

points
5000
5000
6500
6500
8000
8000
8000
8000
4000
4000

538830
112062+(145681/1.075^2)+(
145681 334453/1.075^4)+(89650/1.
075^8)
334453
112062

89650

534397+13360-1376

No, once policy is assigned under MWP act, assignment can not be withdrawn by policy holder under any condition

FV(EFFECT(8%,2),6,0,24015 15000,1)
14670 after load of 2.25%

15000/(1+0.0225)

FPSB India/Public

FPSBI/M-VI/04-01/09/WN-12

Intrinsic Rate of Growth required by the

MF scheme to match NSC returns before
Before annual fees & charges of 1.1%

8.56% RATE(6,0,14670,24015,0)

Intrinsic Rate of Growth required by the

MF scheme to give post charges 8.56%

7)

9.77% ((1+0.0856)/(1-0.011))-1

A)
Cost of Marriage to be covered
when Anaida completes 24 years
Anaida
Age completed
P.M from AkhileshD:E
14
2500 30:70
15
2500
16
4000
17
4000
18
4000
19
4000
20
4000 60:40
21
4000
22
0
23
0
24
0

1000000

D=30%

E=70%
19715
48280
FV(((1.09)^(1/12))FV(((1.14)^(1/12))1,12*2,-(2500*0.3),0,1) 1,2*12,-(2500*0.7),0,1)
96850
259181 FV(((1.14)^(1/12))-1,4*12,-(4000*0.7),-48280,1)
E=40%
FV(((1.09)^(1/12))-1,12*4,-(4000*0.3),-19715,1) D=60%
63088
44141 FV(((1.14)^(1/12))-1,2*12,FV(((1.09)^(1/12))-1,2*12,-(4000*0.6),0,1)
(4000*0.4),0,1)
149016
499031
81700
65398
795145
FV(9%,5,0,-96850,1)
FV(14%,5,0,-259181,1) FV(9%,3,0,-63088,1)
FV(14%,3,0,-44141,1)
149016+499031+81700+653
98

Deficit

8)

B)
SD of XYZ Ltd
SD of NIFTY
Corr Ceoeff(XYZ&NIFTY)
Beta of (XYZ)
formula

Beta=
Covariance(A&M)=
Covariance(XYZ&NIFTY)=
Beta(XYZ)=

9)

-204855 795145-1000000

2.20
1.90
0.90
?
Covariance(A&M)/Variance(M)
SD(A)*SD(M)*Corr Coeff(A&M)
3.76 2.2*1.9*0.9
1.04 3.76/(E82^2)

A)

FPSB India/Public

FPSBI/M-VI/04-01/09/WN-12

10)

B)
Present Age
Retirement Age
Years to retirement
expected life
Years to live after retirement
present take home per month
income needed first month after
Risk free rate
7.50%
Inflation rate
6.00%
corpus needed

42
60
18
75
15
39000
66792
0.6045%
0.4868%
10846318

60-42
75-60
FV(6%,18,0,-39000*0.6,0)
Monthly
(1+0.075)^(1/12)-1
Monthly
(1+0.06)^(1/12)-1
PV(((1+0.6045%)/(1+0.4868%))-1,12*15,-66792,0,1)

Monthly Returns
Debt

Equity

Monthly Rate
Investments till age 55
Investments after 55 to 60

0.72%
0.3
0.6
1
To get Rs. 10846318 she needs to invest

11)
12)

B)
B)

13)

B)

FV(0.72%,(55-42)*12,- FV(1.1%,(55-42)*12,1.10% (0.3),0,1)

0.7,0,1)
0.7
86.61
289.58
0.4
392.45
323.81
15143

86.61+289.58
376.18
716.26
1*10846318/716.26

U/s 49(2A) of Income Tax Act

10.3813% EFFECT(10%,4)
522835 FV(10.3813%,18,-10000,0,1)
Alternatively it can be solved
Year-1
Year-2
Year-3
Year-4
Year-5
Year-6
Year-7
Year-8
Year-9
Year-10
Year-11
Year-12
Year-13
Year-14
Year-15
Year-16
Year-17
Year-18

36671 (10000*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

85989 ((10000+36671)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

152317 ((10000+85989)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

241521 ((10000+152317)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

361490 ((10000+241521)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

522835 ((10000+361490)*(1+0.103813)^3)+(10000*(1+0.103813)^2)+(10000*(1+0.103813))

FPSB India/Public

FPSBI/M-VI/04-01/09/WN-12

14)

B)

15)

B)

16)

B)
Present Higher education cost
cost when Anaida is 24 years
Age running
P.M from Akhilesh
D:E
Anaida
12
2500 30:70
13
2500
14
2500
15
2500
16
4000
17
4000
18
4000 60.:40.
19
4000
20
4000
21
4000

500000

D=30%
E=70%
FV(((1.09)^(1/12))FV(((1.14)^(1/12))1,12*4,-(2500*0.3),0,1) 1,12*4,-(2500*0.7),0,1)
43138
111024

E=40%

138042
FV(((1.09)^(1/
12))-1,4*12,(4000*0.6),0,1
)

101508
730587
FV(((1.14)^(1 116874+374163+
/12))-1,4*12,- 138042+101508
(4000*0.4),0,
1)

82796
221535
FV(((1.09)^(1/12))FV(((1.14)^(1/12))1,12*2,-(4000*0.3),1,2*12,-(4000*0.7),43138,1)
111024,1)

1552924
116874
374163
500000*1.12^10
FV(9%,4,0,-82796,1)
FV(14%,4,0,-221535,1)

Deficit

12
13
14
15
16
17
18
19
20
21

D=60%

822337 1552924-730587

Assuming investment of Rs. 100 per month

30:70

FV(((1.09)^(1/12))1,6*12,-30,0,1)

FV(((1.14)^(1/12))1,6*12,-70,0,1)
2839

7703

60.:40.

4007+13009+3451+2538 FV(9%,4,0,-2839,1)
FV(14%,4,0,-7703,1)
23005
4007
13009
IF by investing Rs. 100 we get=
Therefore to get Rs. 8,22,337 we need to invest Rs.

3575

FV(((1.14)^(1
FV(((1.09)^(1/ /12))-1,4*12,40,0,1)
12))-1,4*12,60,0,1)
3451
2538
p.m.

100*822337/23005

FPSB India/Public

FPSBI/M-VI/04-01/09/WN-12

Solutions - Eklovya
A)

17)

Value of share = Company A =

Required Return
Growth Rate = Retention ratio X Return on equity (ROE)
Return on Equity of Company - A
Retention ratio = 1-dividend payout ratio

Dividend/Required Return-Growth Rate

15%
18%
= (1-dividend payout ratio) x ROE
0.144 (1-0.2)*0.18

Growth rate

133 0.8/(15%-0.144)

Value of share

A)

18)

Eklovya will get Rs. 35,000 as deduction

Mr. Eklovya will get deduction for his policy
Mr. Eklovya will get deduction for his father policy paid by him since he is a senior citizen

Rs. 15,000
Rs. 20,000

Total Deduction Available to Mr. Eklovyas is Rs.15,000 + Rs. 20,000 = Rs.35,000

A)

19)

Tax Payable
Interest @ 1%
per month for 9
months
Total Tax payable with interest
Penalty of Belated Return

4944
445 4944*1%*9

5389 4944+445
5000

A)

20)

Intraday Trading
This income will be added to his total income and will be taxed at

1000000
339900 1000000*33.99%

Net income

660100 1000000-339900

Loan Outstanding as on 1st April 2009

Remaining Balance

1-Apr-09
1-May-09

7
7.5% EMI
3244696
3,215,207

3904796
3244696 3904796-660100

INT
49,768

PRN
20,279

29,488.69

FPSB India/Public

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

1-Apr-04
1-May-04
1-Jun-04
1-Jul-04
1-Aug-04
1-Sep-04
1-Oct-04
1-Nov-04
1-Dec-04
1-Jan-05
1-Feb-05
1-Mar-05
1-Apr-05
1-May-05
1-Jun-05
1-Jul-05
1-Aug-05

15
7.50%
5000000
4984899
4969704
4954414
4939029
4923547
4907969
4892293
4876519
4860647
4844675
4828604
4812432
4796159
4779784
4763307
4746728

FPSBI/M-VI/04-01/09/WN-12

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

1-Jun-09
1-Jul-09
1-Aug-09
1-Sep-09
1-Oct-09
1-Nov-09
1-Dec-09
1-Jan-10
1-Feb-10
1-Mar-10
1-Apr-10
1-May-10
1-Jun-10
1-Jul-10
1-Aug-10
1-Sep-10
1-Oct-10
1-Nov-10
1-Dec-10
1-Jan-11
1-Feb-11
1-Mar-11
1-Apr-11
1-May-11
1-Jun-11
1-Jul-11
1-Aug-11
1-Sep-11
1-Oct-11
1-Nov-11
1-Dec-11
1-Jan-12
1-Feb-12
1-Mar-12
1-Apr-12
1-May-12
1-Jun-12
1-Jul-12
1-Aug-12
1-Sep-12
1-Oct-12
1-Nov-12
1-Dec-12
1-Jan-13
1-Feb-13
1-Mar-13

3,185,534
3,155,676
3,125,631
3,095,398
3,064,976
3,034,364
3,003,561
2,972,565
2,941,376
2,909,991
2,878,411
2,846,633
2,814,656
2,782,480
2,750,102
2,717,522
2,684,739
2,651,750
2,618,556
2,585,154
2,551,543
2,517,722
2,483,689
2,449,445
2,414,985
2,380,311
2,345,420
2,310,311
2,274,982
2,239,433
2,203,661
2,167,666
2,131,446
2,094,999
2,058,325
2,021,422
1,984,287
1,946,921
1,909,321
1,871,487
1,833,415
1,795,106
1,756,558
1,717,768
1,678,736
1,639,460

49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768
49,768

20,095
19,910
19,723
19,535
19,346
19,156
18,965
18,772
18,579
18,384
18,187
17,990
17,791
17,592
17,390
17,188
16,985
16,780
16,573
16,366
16,157
15,947
15,736
15,523
15,309
15,094
14,877
14,659
14,439
14,219
13,996
13,773
13,548
13,322
13,094
12,865
12,634
12,402
12,168
11,933
11,697
11,459
11,219
10,978
10,736
10,492

29,673.00
29,858.45
30,045.07
30,232.85
30,421.81
30,611.94
30,803.27
30,995.79
31,189.51
31,384.44
31,580.60
31,777.98
31,976.59
32,176.44
32,377.54
32,579.90
32,783.53
32,988.43
33,194.60
33,402.07
33,610.83
33,820.90
34,032.28
34,244.98
34,459.01
34,674.38
34,891.10
35,109.17
35,328.60
35,549.40
35,771.59
35,995.16
36,220.13
36,446.51
36,674.30
36,903.51
37,134.16
37,366.25
37,599.78
37,834.78
38,071.25
38,309.20
38,548.63
38,789.56
39,031.99
39,275.94

FPSB India/Public

17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

1-Sep-05
1-Oct-05
1-Nov-05
1-Dec-05
1-Jan-06
1-Feb-06
1-Mar-06
1-Apr-06
1-May-06
1-Jun-06
1-Jul-06
1-Aug-06
1-Sep-06
1-Oct-06
1-Nov-06
1-Dec-06
1-Jan-07
1-Feb-07
1-Mar-07
1-Apr-07
1-May-07
1-Jun-07
1-Jul-07
1-Aug-07
1-Sep-07
1-Oct-07
1-Nov-07
1-Dec-07
1-Jan-08
1-Feb-08
1-Mar-08
1-Apr-08
1-May-08
1-Jun-08
1-Jul-08
1-Aug-08
1-Sep-08
1-Oct-08
1-Nov-08
1-Dec-08
1-Jan-09
1-Feb-09
1-Mar-09
1-Apr-09
1-May-09
1-Jun-09

4730044
4713256
4696363
4679365
4662260
4645049
4627730
4610303
4592766
4575120
4557364
4539497
4521519
4503427
4485223
4466905
4448473
4429925
4411262
4392481
4373584
4354568
4335433
4316179
4296805
4277309
4257692
4237952
4218088
4198101
4177988
4157750
4137385
4116893
4096273
4075524
4054646
4033637
4012496
3991224
3969818
3948279
3926605
3904796
3882850
3860767

FPSBI/M-VI/04-01/09/WN-12

48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84

21)

1-Apr-13
1,599,939
49,768
1-May-13
1,560,170
49,768
1-Jun-13
1,520,153
49,768
1-Jul-13
1,479,886
49,768
1-Aug-13
1,439,367
49,768
1-Sep-13
1,398,595
49,768
1-Oct-13
1,357,569
49,768
1-Nov-13
1,316,285
49,768
1-Dec-13
1,274,744
49,768
1-Jan-14
1,232,943
49,768
1-Feb-14
1,190,881
49,768
1-Mar-14
1,148,556
49,768
1-Apr-14
1,105,967
49,768
1-May-14
1,063,111
49,768
1-Jun-14
1,019,987
49,768
1-Jul-14
976,594
49,768
1-Aug-14
932,930
49,768
1-Sep-14
888,992
49,768
1-Oct-14
844,781
49,768
1-Nov-14
800,292
49,768
1-Dec-14
755,526
49,768
1-Jan-15
710,480
49,768
1-Feb-15
665,153
49,768
1-Mar-15
619,542
49,768
1-Apr-15
573,646
49,768
1-May-15
527,463
49,768
1-Jun-15
480,992
49,768
1-Jul-15
434,230
49,768
1-Aug-15
387,176
49,768
1-Sep-15
339,828
49,768
1-Oct-15
292,184
49,768
1-Nov-15
244,242
49,768
1-Dec-15
196,000
49,768
1-Jan-16
147,457
49,768
1-Feb-16
98,611
49,768
1-Mar-16
49,459
49,768
1-Apr-16
0
49,768
Bal. Interest payable in the new schedule
Bal. Interest payable in the old schedule
Saving in interest
A)
14-Apr-08
-50000
17-Jun-08
-50000
18-Sep-08
-50000
8-Jan-09
-140000
1-Apr-09
300000
Actual Rate of Return
6.91% XIRR

10,247
39,521.42
10,000
39,768.43
9,751
40,016.98
9,501
40,267.08
9,249
40,518.75
8,996
40,772.00
8,741
41,026.82
8,485
41,283.24
8,227
41,541.26
7,967
41,800.89
7,706
42,062.15
7,443
42,325.04
7,178
42,589.57
6,912
42,855.75
6,644
43,123.60
6,375
43,393.12
6,104
43,664.33
5,831
43,937.23
5,556
44,211.84
5,280
44,488.16
5,002
44,766.21
4,722
45,046.00
4,441
45,327.54
4,157
45,610.84
3,872
45,895.91
3,585
46,182.76
3,297
46,471.40
3,006
46,761.84
2,714
47,054.10
2,420
47,348.19
2,124
47,644.12
1,826
47,941.90
1,527
48,241.53
1,225
48,543.04
922
48,846.44
616
49,151.73
309
49,458.92
935,820
1,657,278
721459 1657278-935820

Post Tax Return = Return * (1-Tax Rate)

FPSB India/Public

63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105

1-Jul-09
1-Aug-09
1-Sep-09
1-Oct-09
1-Nov-09
1-Dec-09
1-Jan-10
1-Feb-10
1-Mar-10
1-Apr-10
1-May-10
1-Jun-10
1-Jul-10
1-Aug-10
1-Sep-10
1-Oct-10
1-Nov-10
1-Dec-10
1-Jan-11
1-Feb-11
1-Mar-11
1-Apr-11
1-May-11
1-Jun-11
1-Jul-11
1-Aug-11
1-Sep-11
1-Oct-11
1-Nov-11
1-Dec-11
1-Jan-12
1-Feb-12
1-Mar-12
1-Apr-12
1-May-12
1-Jun-12
1-Jul-12
1-Aug-12
1-Sep-12
1-Oct-12
1-Nov-12
1-Dec-12
1-Jan-13

3838547
3816187
3793687
3771047
3748266
3725342
3702275
3679063
3655707
3632204
3608555
3584758
3560812
3536716
3512470
3488073
3463522
3438819
3413961
3388947
3363778
3338451
3312965
3287321
3261516
3235550
3209421
3183130
3156674
3130052
3103264
3076309
3049186
3021892
2994429
2966793
2938985
2911003
2882846
2854513
2826003
2797315
2768448

4.56% 6.91*(1-0.3399)

FPSBI/M-VI/04-01/09/WN-12

22)

B)

23)

C)
Eklovya's post-tax salary in 2008-09
Post-tax salary in the first year of investment
Salary
01.04.2009
32
01.04.2010
33
819000
01.04.2011
34
859950
01.04.2012
35
902948
01.04.2013
36
948095
01.04.2014
37
995500
01.04.2015
38
1045275
01.04.2016
39
1097538
01.04.2017
40
1152415
01.04.2018
41
1210036
01.04.2019
42
1270538
01.04.2020
43
1334065
01.04.2021
44
1400768
01.04.2022
45
1470806
01.04.2023
46
1544347
01.04.2024
47
1621564
01.04.2025
48
1702642
01.04.2026
49
1787774
01.04.2027
50
1877163
01.04.2028
51
1971021
01.04.2029
52
2069572
01.04.2030
53
2173051
01.04.2031
54
2281703
01.04.2032
55
2395789
01.04.2033
56
2515578
01.04.2034
57
2641357
01.04.2035
58
2773425
01.04.2036
59
2912096
01.04.2037
60
3057701

per annum
per month

780000 65000*12
819000 780000*1.05
Saving
556212
556212
556212
556212
556212
556212
556212
556212
556212
556212
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

262788
303738
346736
391883
439288
489063
541326
596203
653824
714326
1334065
1400768
1470806
1544347
1621564
1702642
1787774
1877163
1971021
2069572
2173051
2281703
2395789
2515578
2641357
2773425
2912096
3057701

26279
30374
34674
39188
43929
48906
54133
59620
65382
71433
133406
140077
147081
154435
162156
170264
178777
187716
197102
206957
217305
228170
239579
251558
264136
277342
291210
305770

Investment
as at end of the year
26,279
58,624
97,694
144,209
198,954
262,781
336,623
421,490
518,484
628,803
809,369
1,010,149
1,232,991
1,479,900
1,753,048
2,054,791
2,387,678
2,754,470
3,158,158
3,601,977
4,089,430
4,624,307
5,210,709
5,853,070
6,556,186
7,325,243
8,165,846
9,084,054

Value of funds at 60
21,205,571 FV(7.5%,28,0,-1600000,0)+90,84,054
Inflation adusted real rate of return
0.014285714 (1.065/1.05)-1
0.001182752 (1+0.0142857)^(1/12)-1

PV at age 60 of monthly pension for 15 years

Excess PV at age 60 after meeting pension per his expected life
Future Value of this exceess PV after 15 years @ 6.5% p.a.

20,279,430 PV(0.00118275,180,-125000,0,1)
926,141 2,12,05,571 - 2,02,79,430
2,381,887 9,26,141*(1.065)^15

FPSB India/Public

106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151

1-Feb-13
1-Mar-13
1-Apr-13
1-May-13
1-Jun-13
1-Jul-13
1-Aug-13
1-Sep-13
1-Oct-13
1-Nov-13
1-Dec-13
1-Jan-14
1-Feb-14
1-Mar-14
1-Apr-14
1-May-14
1-Jun-14
1-Jul-14
1-Aug-14
1-Sep-14
1-Oct-14
1-Nov-14
1-Dec-14
1-Jan-15
1-Feb-15
1-Mar-15
1-Apr-15
1-May-15
1-Jun-15
1-Jul-15
1-Aug-15
1-Sep-15
1-Oct-15
1-Nov-15
1-Dec-15
1-Jan-16
1-Feb-16
1-Mar-16
1-Apr-16
1-May-16
1-Jun-16
1-Jul-16
1-Aug-16
1-Sep-16
1-Oct-16
1-Nov-16

2739400
2710171
2680759
2651163
2621382
2591415
2561261
2530918
2500386
2469662
2438747
2407639
2376336
2344837
2313142
2281248
2249156
2216862
2184367
2151669
2118766
2085658
2052342
2018819
1985086
1951142
1916986
1882617
1848032
1813232
1778214
1742977
1707520
1671842
1635940
1599814
1563462
1526883
1490076
1453038
1415769
1378267
1340530
1302558
1264348
1225900

FPSBI/M-VI/04-01/09/WN-12

24)

A)

25)

A)

Rs. 8,00,000/Principle of Under Insurance does not apply in the instant case.

26)

B)
In accordance with the facts of case, the gift to Mr. Eklovya is valid because there was no undue influence, he was
acting in good faith and her act of adding codicil to the will was with her free consent.

27)

A)

28)

Net profit (loss) on the contract

Eklovya = () (3400-3200) * 50
Dinesh = () 100 x 50

-10000
-5000

A)
Eklovya
Contribution
Year

Date

Out Bal
1-Apr-09
1-Oct-09
1-Apr-10
1-Oct-10
1-Apr-11
1-Oct-11
1-Apr-12
1-Oct-12
1-Apr-13
1-Oct-13
1-Apr-14
1-Oct-14
1-Apr-15
1-Oct-15
1-Apr-16
1-Oct-16
1-Apr-17
1-Oct-17
1-Apr-18

1
2
3
4
5

15000

535697

Interest on fresh
funds
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000

610353
690981
778059
872104
973673
1083366
1201836
1329783

Closing Bal
end of March

Interest on
April balance
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600

42856

610353

48828

690981

55278

778059

62245

872104

69768

973673

77894

1083366

86669

1201836

96147

1329783

106383

1467965

1-Dec-16
1-Jan-17
1-Feb-17
1-Mar-17
1-Apr-17
1-May-17
1-Jun-17
1-Jul-17
1-Aug-17
1-Sep-17
1-Oct-17
1-Nov-17
1-Dec-17
1-Jan-18
1-Feb-18
1-Mar-18
1-Apr-18
1-May-18
1-Jun-18
1-Jul-18
1-Aug-18
1-Sep-18
1-Oct-18
1-Nov-18
1-Dec-18
1-Jan-19
1-Feb-19
1-Mar-19
1-Apr-19

1187211
1148281
1109107
1069688
1030023
990110
949948
909534
868868
827948
786772
745339
703647
661694
619479
577000
534255
491244
447964
404413
360590
316493
272120
227470
182541
137332
91839
46063
0

1467965

Shikha's
Salary
Year

Contribution

152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180

15000

Date

Out Bal
1-Apr-09

434068

Contribution

Interest on fresh
funds
15000

Closing Bal
end of March

Interest on
April balance
1200

FPSB India/Public

34725

500593

FPSBI/M-VI/04-01/09/WN-12

1-Oct-09
1-Apr-10
1-Oct-10
1-Apr-11
1-Oct-11
1-Apr-12
1-Oct-12
1-Apr-13
1-Oct-13
1-Apr-14
1-Oct-14
1-Apr-15
1-Oct-15
1-Apr-16
1-Oct-16
1
1-Apr-17
1-Oct-17
2
1-Apr-18
1-Oct-18
3
1-Apr-19
1-Oct-19
4
1-Apr-20
1-Oct-20
5
1-Apr-21
Simran will turn 24 in 2028
Nishita will turn 24 in 2030
Amount Required for Simran's Marriage
Amount Required for Nishta's Marriage

15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000
15000

500593
572441
650036
733839
824346
922094
1027661
1141674
1264808
1397793
1541416

600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600
1200
600

45795

650036

52003

733839

58707

824346

65948

922094

73768

1027661

82213

1141674

91334

1264808

101185

1397793

111823

1541416

123313

1696530

10 years after maturity of extended PPF A/c. of Eklovya

9 years after maturity of extended PPF A/c. of Shikha
3000000
3250000
RATE(10,0,-1467965,
7.41% 3000000, 1)

Rate of Return Shikha will invest to meet his goal

7.49% RATE(9,0,-1696530,
3250000, 1)

Therefore approximate rate of return required to meet the target amount for the marriage
of each daughter is
C)

572441

1696530

Rate of Return Eklovya will invest to meet his goal

29)

40047

Amount required for Simran at age 18 (curr. Prices)

No. of years
Future value of sum required @ 7% escalation p.a.
No. of months
Rate of return per annum
Rate of return per month effective
Amount required per month
Amount required for Nishita at age 21 (curr. Prices)
No. of years
Future value of sum required @ 7% escalation p.a.

1000000
13
2409845
156
0.12
0.009488793
6,735
1500000
18
5069898

7.50%

18-5
1000000*(1.07)^13
13*12
(1+0.12)^(1/12)-1
PMT(0.009488793,156,0,2409845,1)
21-3
1500000*(1.07)^18

FPSB India/Public

10

FPSBI/M-VI/04-01/09/WN-12

No. of months
Rate of return per annum
Rate of return per month effective
Amount required per month
30)

D)

31)

B)

216 18*12
0.12
0.009488793 (1+0.12)^(1/12)-1
7,123 PMT(0.009488793,216,0,5069898,1)

Expected Return of the Portfolio

12.00% 0.4*0.15+0.3*0.08+0.3*0.12

Post Tax Return = Expected Return * (1 - Tax Rate)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

Existing Housing Loan Repayment schedule

15
7.50% EMI
1-Apr-04
5000000
1-May-04
4984899
1-Jun-04
4969704
1-Jul-04
4954414
1-Aug-04
4939029
1-Sep-04
4923547
1-Oct-04
4907969
1-Nov-04
4892293
1-Dec-04
4876519
1-Jan-05
4860647
1-Feb-05
4844675
1-Mar-05
4828604
1-Apr-05
4812432
1-May-05
4796159
1-Jun-05
4779784
1-Jul-05
4763307
1-Aug-05
4746728
1-Sep-05
4730044
1-Oct-05
4713256
1-Nov-05
4696363
1-Dec-05
4679365
1-Jan-06
4662260
1-Feb-06
4645049
1-Mar-06
4627730
1-Apr-06
4610303
1-May-06
4592766
1-Jun-06
4575120
1-Jul-06
4557364
1-Aug-06
4539497
1-Sep-06
4521519

7.92% 0.12*(1-0.3399)

INT
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351

Principal
31250
31156
31061
30965
30869
30772
30675
30577
30478
30379
30279
30179
30078
29976
29874
29771
29667
29563
29458
29352
29246
29139
29032
28923
28814
28705
28595
28484
28372

FPSB India/Public

15101
15195
15290
15386
15482
15578
15676
15774
15872
15972
16071
16172
16273
16375
16477
16580
16684
16788
16893
16998
17105
17211
17319
17427
17536
17646
17756
17867
17979
18091

11

FPSBI/M-VI/04-01/09/WN-12

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75

1-Oct-06
1-Nov-06
1-Dec-06
1-Jan-07
1-Feb-07
1-Mar-07
1-Apr-07
1-May-07
1-Jun-07
1-Jul-07
1-Aug-07
1-Sep-07
1-Oct-07
1-Nov-07
1-Dec-07
1-Jan-08
1-Feb-08
1-Mar-08
1-Apr-08
1-May-08
1-Jun-08
1-Jul-08
1-Aug-08
1-Sep-08
1-Oct-08
1-Nov-08
1-Dec-08
1-Jan-09
1-Feb-09
1-Mar-09
1-Apr-09
1-May-09
1-Jun-09
1-Jul-09
1-Aug-09
1-Sep-09
1-Oct-09
1-Nov-09
1-Dec-09
1-Jan-10
1-Feb-10
1-Mar-10
1-Apr-10
1-May-10
1-Jun-10
1-Jul-10

4503427
4485223
4466905
4448473
4429925
4411262
4392481
4373584
4354568
4335433
4316179
4296805
4277309
4257692
4237952
4218088
4198101
4177988
4157750
4137385
4116893
4096273
4075524
4054646
4033637
4012496
3991224
3969818
3948279
3926605
3904796
3882850
3860767
3838547
3816187
3793687
3771047
3748266
3725342
3702275
3679063
3655707
3632204
3608555
3584758
3560812

46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351

28259
28146
28033
27918
27803
27687
27570
27453
27335
27216
27096
26976
26855
26733
26611
26487
26363
26238
26112
25986
25859
25731
25602
25472
25342
25210
25078
24945
24811
24677
24541
24405
24268
24130
23991
23851
23711
23569
23427
23283
23139
22994
22848
22701
22553
22405

FPSB India/Public

18204
18318
18432
18548
18664
18780
18898
19016
19135
19254
19374
19496
19617
19740
19863
19988
20112
20238
20365
20492
20620
20749
20879
21009
21140
21273
21405
21539
21674
21809
21946
22083
22221
22360
22499
22640
22782
22924
23067
23211
23356
23502
23649
23797
23946
24096

12

FPSBI/M-VI/04-01/09/WN-12

76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121

1-Aug-10
1-Sep-10
1-Oct-10
1-Nov-10
1-Dec-10
1-Jan-11
1-Feb-11
1-Mar-11
1-Apr-11
1-May-11
1-Jun-11
1-Jul-11
1-Aug-11
1-Sep-11
1-Oct-11
1-Nov-11
1-Dec-11
1-Jan-12
1-Feb-12
1-Mar-12
1-Apr-12
1-May-12
1-Jun-12
1-Jul-12
1-Aug-12
1-Sep-12
1-Oct-12
1-Nov-12
1-Dec-12
1-Jan-13
1-Feb-13
1-Mar-13
1-Apr-13
1-May-13
1-Jun-13
1-Jul-13
1-Aug-13
1-Sep-13
1-Oct-13
1-Nov-13
1-Dec-13
1-Jan-14
1-Feb-14
1-Mar-14
1-Apr-14
1-May-14

3536716
3512470
3488073
3463522
3438819
3413961
3388947
3363778
3338451
3312965
3287321
3261516
3235550
3209421
3183130
3156674
3130052
3103264
3076309
3049186
3021892
2994429
2966793
2938985
2911003
2882846
2854513
2826003
2797315
2768448
2739400
2710171
2680759
2651163
2621382
2591415
2561261
2530918
2500386
2469662
2438747
2407639
2376336
2344837
2313142
2281248

46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351

22255
22104
21953
21800
21647
21493
21337
21181
21024
20865
20706
20546
20384
20222
20059
19895
19729
19563
19395
19227
19057
18887
18715
18542
18369
18194
18018
17841
17663
17483
17303
17121
16939
16755
16570
16384
16196
16008
15818
15627
15435
15242
15048
14852
14655
14457

FPSB India/Public

24246
24398
24550
24704
24858
25013
25170
25327
25485
25645
25805
25966
26128
26292
26456
26621
26788
26955
27124
27293
27464
27635
27808
27982
28157
28333
28510
28688
28867
29048
29229
29412
29596
29781
29967
30154
30343
30532
30723
30915
31108
31303
31499
31695
31893
32093

13

FPSBI/M-VI/04-01/09/WN-12

122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167

1-Jun-14
1-Jul-14
1-Aug-14
1-Sep-14
1-Oct-14
1-Nov-14
1-Dec-14
1-Jan-15
1-Feb-15
1-Mar-15
1-Apr-15
1-May-15
1-Jun-15
1-Jul-15
1-Aug-15
1-Sep-15
1-Oct-15
1-Nov-15
1-Dec-15
1-Jan-16
1-Feb-16
1-Mar-16
1-Apr-16
1-May-16
1-Jun-16
1-Jul-16
1-Aug-16
1-Sep-16
1-Oct-16
1-Nov-16
1-Dec-16
1-Jan-17
1-Feb-17
1-Mar-17
1-Apr-17
1-May-17
1-Jun-17
1-Jul-17
1-Aug-17
1-Sep-17
1-Oct-17
1-Nov-17
1-Dec-17
1-Jan-18
1-Feb-18
1-Mar-18

2249156
2216862
2184367
2151669
2118766
2085658
2052342
2018819
1985086
1951142
1916986
1882617
1848032
1813232
1778214
1742977
1707520
1671842
1635940
1599814
1563462
1526883
1490076
1453038
1415769
1378267
1340530
1302558
1264348
1225900
1187211
1148281
1109107
1069688
1030023
990110
949948
909534
868868
827948
786772
745339
703647
661694
619479
577000

46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351

14258
14057
13855
13652
13448
13242
13035
12827
12618
12407
12195
11981
11766
11550
11333
11114
10894
10672
10449
10225
9999
9772
9543
9313
9081
8849
8614
8378
8141
7902
7662
7420
7177
6932
6686
6438
6188
5937
5685
5430
5175
4917
4658
4398
4136
3872

FPSB India/Public

32293
32495
32698
32903
33108
33315
33523
33733
33944
34156
34369
34584
34800
35018
35237
35457
35679
35902
36126
36352
36579
36808
37038
37269
37502
37736
37972
38210
38448
38689
38931
39174
39419
39665
39913
40162
40413
40666
40920
41176
41433
41692
41953
42215
42479
42744

14

FPSBI/M-VI/04-01/09/WN-12

168
169
170
171
172
173
174
175
176
177
178
179
180

1-Apr-18
1-May-18
1-Jun-18
1-Jul-18
1-Aug-18
1-Sep-18
1-Oct-18
1-Nov-18
1-Dec-18
1-Jan-19
1-Feb-19
1-Mar-19
1-Apr-19

534255
491244
447964
404413
360590
316493
272120
227470
182541
137332
91839
46063
0

46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351
46351

3606
3339
3070
2800
2528
2254
1978
1701
1422
1141
858
574
288

FPSB India/Public

43012
43280
43551
43823
44097
44373
44650
44929
45210
45492
45777
46063

15