Financial Plan of 909782363.

xlsx and Family

TVM Practice Questions & Solutions

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 Financial Plan of 909782363.xlsx and Family

VM Practice Questions & Solutions

Step 1 - Read question fully and Understand Properly

Mr. One invests ₹5,00,000 today in a fund that offers 8% annual interest, compounded yearly, for a
period of 5 years. What will be the total amount accumulated in the fund at the end of 5 years?

Ms. Two is saving for her son's graduation. The current education fee is ₹5,00,000, and her son will
graduate in 12 years. She wants to know the future fee amount she will need to pay after 12 years,
assuming education inflation is 10% per annum.

Mr. Three plans to buy a car in 3 years, which is expected to cost ₹12,00,000 at that time. He wants
to know how much he should invest today at an annual interest rate of 7% to accumulate the
required amount.
Ms. Four needs ₹50,000 every month for household expenses for 20 years. How much corpus
should be invested at 9% to meet her requirement? (Expenses needed at beginning of every
month)

Mr. Five invested ₹5,00,000 in a mutual fund scheme for 15 years. If he withdrew ₹20,00,000 at the
end of this period, what was the rate of return on his investment?

Ms Six observes the BSE Sensex levels in March 2022 at 58,568 points. She learns the Sensex began
at 100 points on 1st April 1979. She would like to measure the Sensex performance.

Mr. Seven would like to start his business. He has saved ₹7,50,000 till date and invested in a
Mutual Fund that gives 11% return. How long will he have to wait to start the business, if he needs
₹20,00,000 initial capital?

Ms Eight invests ₹30,000 every month. Her goal is to accumulate ₹1,50,00,000 for her retirement.
How long will she invest at 12% to reach the required corpus? (Consider investments made at the
beginning of each month)

Mr. Nine buys a house worth ₹1.25 Crores by making 40% down payment. He borrows the rest
amount i.e. 75 Lakhs from Bank at 9% interest compounded monthly for 12 years. How much EMI
will he have to pay each month? (EMIs are paid at the end of month)

Ms Ten wants to plan for retirement in next 20 years. If she targets to accumulate ₹5 Crore by
investing at 15%, how much monthly investment should she make?

Case Study: Mr. Rohan Malhotra is a 45 years working as a Software Engineer in an IT Company
in Bangalore. His Spouse, Nisha aged 42 is a Home Maker. The couple have two children, Gauri &
Gautam. Gauri is 18 Years old studying in First Year of Engineering. Gautam is 14 Years old
studying at 8th Grade of CBSE School. (Q11-Q15)

Rohan is planning to go on an Europe trip after 3 years which will cost his family Rs. 12 Lacs. He is
planning to invest now in a Mutual Fund Scheme for 3 years @ 7% p.a. How much should he invest
now to accumulate required amount?

Rohan has received a Diwali Bonus of Rs. 1 Lacs from his company. He spent Rs. 50,000 in Diwali
Gifts. He is planning to invest the remaining money in Mutual Funds. What will be his investment
value after 10 Years if it grows at 10% p.a.

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Financial Plan of 909782363.xlsx and Family

Rohan is considering to invest Rs. 1,00,000 in a Post Office Scheme and will stay invested until his
investment gets doubled. The current rate of return is 8% per annum. Mr. Rohan wants to know
when his investment will get doubled?

Rohan Malhotra will require Rs. 25 Lakhs after 4 years to fund education expenses of Gauri's PG. He
is planning to invest a fixed amount every year for 4 years. What will be the required annual
investment amount assuming 10% p.a. returns.

Nisha Malhotra wants to buy a diamond ring after 5 years. The ring will cost her Rs. 75,000 after 5
years. She has some savings of Rs. 50,000 which she decides to invest for the same time. What
returns she needs to earn to fund her goal?

One invest ₹50,000 every month for 15 years. If her investments guarantee 12% return, what
amount will she get? (Consider 12% Nominal Rate, investments made at the beginning of month)

Two wants to make provision for her daughter's education. If she needs ₹5,00,000 to pay the fees
after 8 years, what amount should she invest today at 9% return?

Three will need ₹50,00,000 to move to Canada after 5 years. If she can invest ₹30,00,000 today,
what returns should her investments gain?
Four wants to make an International Vacation with family. The Vacation is expected to cost ₹7.5
Lakhs all inclusive. She has accumulated ₹2.5 Lakhs so far and can invest ₹ 5,000 every month
towards the goal. Considering her investments fetch 8% return, in how many years she go on
vacation?

Five wants to plan for retirement in next 15 years. She has accumulated ₹25 Lakhs so far. If she
targets to accumulate ₹3.5 Crores by investing at 12%, how much monthly investment should she
make?

Mr. Bangar wants to send his son to US for post graduation after 5 years. The program is expected
to cost ₹50 Lakhs then. Mr. Bangar wants to make a provision today. Considering his investments
fetch 12% returns, how much should he invest?

Ms Goswami plans to accumulate ₹5,00,000 to start her own business after 5 years. She plans to
invest every month in a balanced fund which will fetch her 10% returns. What amount will she
invest every month to achieve her goal?

Ms Punia plans to buy her house next month. She will borrow ₹25 Lakhs for 15 years from her bank
to finance the house. Her monthly inflow are ₹55,000. Her other expenses are ₹30,000. Should the
bank lend at 8.5% per annum compounded monthly, would she be able to afford EMIs?

Mr. Ganguly redeemed his Mutual Funds proceedings today. He invested ₹5 Lakhs for 6 Years. If his
bank account is credited with ₹12 Lakhs, how have his investments performed?

Mr. Tendulkar invests ₹10,000 in an SIP every month for 10 years. After 10 years, he received ₹20
Lakhs. How have his investments performed?

Mr. Dravid invested ₹50 Lakhs for 8 Years in a fixed income security. His savings amounted to ₹1
Crore at the time of withdrawal. How much returns did his investments fetch?

Ms. Raj will receive retirement benefits ₹2.5 Crores from BCCI. Ms. Raj would like to invest the
entire corpus in a Hybrid fund that earns 12% p.a. She needs ₹10 Crores to start her NGO. How
long will she wait to start her NGO?

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Financial Plan of 909782363.xlsx and Family

Ms. Kaur plans a world tour. She plans to accumulate ₹20,00,000 for the tour. She can save
₹2,50,000 annually and her savings earn 10% p.a. How long will she wait to make her world tour?

Mr. Bumrah is planning to buy a car after 5 years when it is expected to cost ₹50 Lakhs. He invests
₹30 Lakhs today. If his savings earn a compound annual interest of 12%, will he able to reach his
goal?
Mr. Jadeja wants to invest ₹1 lakh in an instrument for 5 years expected to give 9% returns. How
much amount will the client get after 5 years?

Vijayraj has just sold a land which he had bought for 10 lacs in July 2004. He is elated as he got 50
lacs from the sale. If he invests this money in Mutual Funds for his retirement goal which is 20
years away. What would be the corpus he will have considering 12 % CAGR.

Vijayraj has sold a land last week after 17 years of purchase. He had bought the land in July 2004
for 10 lacs. He is elated as he got 50 lacs from the sale. Calculate the CAGR of his land investment.

Mr Nambidurai is 45 years old. He wants to invest in Mutual Funds to build a corpus of 1 Crore by
age 60. Calculate the monthly SIP amount required considering 12 % CAGR returns of his portfolio.

Mr Janakiraman wants to start SIP for her daughter’s higher education goal. She is 4 years old. He
would need money when she turns 18. Presently higher education costs 20 lacs. Calculate monthly
SIP amount required considering 10 % education inflation and 12 % CAGR of Mutual Funds.

Mr Ramesh wants to buy a flat costing 75 lacs. His Mutual Fund Portfolio is valued 15 lacs which he
will redeem for the house purchase. Remaining amount he is planning to take home loan for 30
years at 7 % interest monthly compounding. Calculate the EMI amount.

Mr Kannappan has just retired. He has got 100 lacs as retirement benefits. He wants to invest 50
lacs in SCSS,PMVVY and POMIS & remaining 50 lacs in Mutual Funds to get regular monthly
income. Calculate the monthly income (beginning of the month) for next 35 years considering 9 %
CAGR returns of his MF portfolio.

Mr. Muruganandam is a business man. He is aged 45 and wants to retire at 65. He wants to invest 5
lacs every year in Mutual Fund Portfolio (end of the year). Considering 12 % CAGR returns, what
would be his retirement kitty at age 65.

Mr. Thyagarajan, a senior executive in an MNC is retiring next year. He is planning to invest a large
chunk of his retirement benefits in Mutual Funds to get regular annual income of 12 lacs (beginning
of the month) for next 30 years. Calculate the investment amount required considering 9 %
Portfolio CAGR & 6 % Inflation.

Amar has opted for PMVVY. He will invest 15 lacs and receive a monthly pension (at the end) of
9250 for 10 years.
After 10 years, he will receive 15 lacs back. Calculate the nominal & effective returns Amar will earn
from this instrument.

Mahel wants to buy a car after 3 years which is expected to cost ₹20 Lakhs then. Considering his
investments fetch 10% returns, how much should he invest now?

Prepared by Sadique Neelgund, CFP Page 6 of

Financial Plan of 909782363.xlsx and Family

Step 2 - Enter what is already available and figure out what to find
Rate NPER PV FV PMT

8.00% 5 (500,000) Find -

10.00% 12 (500,000) Find -

7.00% 3 Find 1,200,000 -

9.00% 20 Find - 50,000

Find 15 (500,000) 2,000,000 -

Find 43 -100 58,568 -

11.00% Find (750,000) 2,000,000 -

12.00% Find - 15,000,000 -30,000

9.00% 12 (7,500,000) - Find

15.00% 20 - 50,000,000 Find

7.0% 3 Find 1,200,000 -

10.0% 10 50,000 Find -

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Financial Plan of 909782363.xlsx and Family

8.0% Find (100,000) 200,000 -

10.0% 4 - 2,500,000 Find

Find 5 -50,000 75,000 -

12.0% 15 0 Find -50,000

9.0% 8 Find 500,000 0

Find 5 (3,000,000) 5,000,000

8.0% Find (250,000) 750,000 -5,000

12.0% 15 (2,500,000) 35,000,000 Find

12.00% 5 Find 5,000,000 -

10.00% 5 - 500,000 Find

8.50% 15 2,500,000 - Find

Find 6 -500,000 1,200,000 -

Find 10 - 2,000,000 -10,000

Find 8 -5,000,000 10,000,000 -

12.00% Find (25,000,000) 100,000,000 -

Prepared by Sadique Neelgund, CFP Page 8 of

Financial Plan of 909782363.xlsx and Family

10.00% Find - 2,000,000 -250,000

12.00% 5 (3,000,000) Find -

9.00% 5 (100,000) Find -

12.00% 20 (5,000,000) Find -

Find 17 (1,000,000) 5,000,000 -

12.00% 15 - 10,000,000 Find

12.00% 14 - 7,594,997 Find

7.00% 30 6,000,000 - Find

9.00% 35 (5,000,000) - Find

12.00% 20 - Find -500,000

2.83% 30 Find - 1,200,000

Find 10 (1,500,000) 1,500,000 9,250

10.00% 3 Find 2,000,000 0

Prepared by Sadique Neelgund, CFP Page 9 of

 Financial Plan of 909782363.xlsx and Family

and figure out what to find Step 3 - Find out using

No. of Payments TVM Calculator & Enter
Type No. of Compounding p.a. answer
p.a

1 1 1 734,664

1 1 1 1,569,214

1 1 1 -979,557

1 12 1 -5,740,622

1 1 1 9.68%

1 1 1 15.97%

1 1 1 9.40

1 12 1 15.36

0 12 12 85,352

1 12 1 -37,677

1 1 1 (979,557)

1 1 1 129,687

Prepared by Sadique Neelgund, CFP Page 10 of

Financial Plan of 909782363.xlsx and Family

1 1 1 9.01

1 1 1 (489,706)

1 1 1 8.45%

1 12 1 23,796,570

1 1 1 -250,933

1 1 1 10.76%

1 12 1 5.13

1 12 1 -44,788

1 1 1 -2,837,134

1 12 1 -6,479

0 12 12 -24,618

0 1 1 15.71%

1 12 1 9.86%

1 1 1 9.05%

1 1 1 12.23

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Financial Plan of 909782363.xlsx and Family

1 1 1 5.73

1 1 1 5,287,025

1 1 1 153,862

1 1 1 48,231,465

1 1 1 9.93%

1 12 1 -21,011

1 12 1 -18,366

0 12 12 -39,918

1 12 1 37,622

0 1 1 36,026,221

1 1 1 -24,725,845

0.62%*12 = 7.40% -
0 12 1
Nominal & 7.66% - Effective

1 1 1 -1,502,630

Prepared by Sadique Neelgund, CFP Page 12 of

Financial Plan of 909782363.xlsx and Family

2 Steps Calculation -
FV & PMT

2 Steps Calculation -
Real Rate of Return &
PV

Nominal - P/Y - 1 & C/Y

- 1 & Effective - P/Y -
12 & C/Y - 1

Prepared by Sadique Neelgund, CFP Page 13 of

Financial Plan of 909782363.xlsx and Family

TVM Practice Questions

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Financial Plan of 909782363.xlsx and Family

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 Financial Plan of 909782363.xlsx and Family

VM Practice Questions

Step 1 - Read question fully and Understand Properly

Mr. One invests ₹5,00,000 today in a fund that offers 8% annual interest, compounded yearly, for a
period of 5 years. What will be the total amount accumulated in the fund at the end of 5 years?

Ms. Two is saving for her son's graduation. The current education fee is ₹5,00,000, and her son will
graduate in 12 years. She wants to know the future fee amount she will need to pay after 12 years,
assuming education inflation is 10% per annum.

Mr. Three plans to buy a car in 3 years, which is expected to cost ₹12,00,000 at that time. He wants
to know how much he should invest today at an annual interest rate of 7% to accumulate the
required amount.
Ms. Four needs ₹50,000 every month for household expenses for 20 years. How much corpus
should be invested at 9% to meet her requirement? (Expenses needed at beginning of every
month)

Mr. Five invested ₹5,00,000 in a mutual fund scheme for 15 years. If he withdrew ₹20,00,000 at the
end of this period, what was the rate of return on his investment?

Ms Six observes the BSE Sensex levels in March 2022 at 58,568 points. She learns the Sensex began
at 100 points on 1st April 1979. She would like to measure the Sensex performance.

Mr. Seven would like to start his business. He has saved ₹7,50,000 till date and invested in a
Mutual Fund that gives 11% return. How long will he have to wait to start the business, if he needs
₹20,00,000 initial capital?

Ms Eight invests ₹30,000 every month. Her goal is to accumulate ₹1,50,00,000 for her retirement.
How long will she invest at 12% to reach the required corpus? (Consider investments made at the
beginning of each month)

Mr. Nine buys a house worth ₹1.25 Crores by making 40% down payment. He borrows the rest
amount i.e. 75 Lakhs from Bank at 9% interest compounded monthly for 12 years. How much EMI
will he have to pay each month? (EMIs are paid at the end of month)

Ms Ten wants to plan for retirement in next 20 years. If she targets to accumulate ₹5 Crore by
investing at 15%, how much monthly investment should she make?

Case Study: Mr. Rohan Malhotra is a 45 years working as a Software Engineer in an IT Company
in Bangalore. His Spouse, Nisha aged 42 is a Home Maker. The couple have two children, Gauri &
Gautam. Gauri is 18 Years old studying in First Year of Engineering. Gautam is 14 Years old
studying at 8th Grade of CBSE School. (Q11-Q15)

Rohan is planning to go on an Europe trip after 3 years which will cost his family Rs. 12 Lacs. He is
planning to invest now in a Bank Fixed Deposit for 3 years @ 7% p.a. How much should he invest
now to accumulate required amount?

Rohan has received a Diwali Bonus of Rs. 1 Lacs from his company. He spent Rs. 50,000 in Diwali
Gifts. He is planning to invest the remaining money in Mutual Funds. What will be his investment
value after 10 Years if it grows at 10% p.a.

Prepared by Sadique Neelgund, CFP Page 17 of

Financial Plan of 909782363.xlsx and Family

Rohan is considering to invest Rs. 1,00,000 in a Post Office Scheme and will stay invested until his
investment gets doubled. The current rate of return is 8% per annum. Mr. Rohan wants to know
when his investment will get doubled?

Rohan Malhotra will require Rs. 25 Lakhs after 4 years to fund education expenses of Gauri's PG. He
is planning to invest a fixed amount every year for 4 years. What will be the required annual
investment amount assuming 10% p.a. returns.

Nisha Malhotra wants to buy a diamond ring after 5 years. The ring will cost her Rs. 75,000 after 5
years. She has some savings of Rs. 50,000 which she decides to invest for the same time. What
returns she needs to earn to fund her goal?

One invest ₹50,000 every month for 15 years. If her investments guarantee 12% return, what
amount will she get? (Consider 12% Nominal Rate, investments made at the beginning of month)

Two wants to make provision for her daughter's education. If she needs ₹5,00,000 to pay the fees
after 8 years, what amount should she invest today at 9% return?

Three will need ₹50,00,000 to move to Canada after 5 years. If she can invest ₹30,00,000 today,
what returns should her investments gain?
Four wants to make an International Vacation with family. The Vacation is expected to cost ₹7.5
Lakhs all inclusive. She has accumulated ₹2.5 Lakhs so far and can invest ₹ 5,000 every month
towards the goal. Considering her investments fetch 8% return, in how many years she go on
vacation?

Five wants to plan for retirement in next 15 years. She has accumulated ₹25 Lakhs so far. If she
targets to accumulate ₹3.5 Crores by investing at 12%, how much monthly investment should she
make?

Mr. Bangar wants to send his son to US for post graduation after 5 years. The program is expected
to cost ₹50 Lakhs then. Mr. Bangar wants to make a provision today. Considering his investments
fetch 12% returns, how much should he invest?

Ms Goswami plans to accumulate ₹5,00,000 to start her own business after 5 years. She plans to
invest every month in a balanced fund which will fetch her 10% returns. What amount will she
invest every month to achieve her goal?

Ms Punia plans to buy her house next month. She will borrow ₹25 Lakhs for 15 years from her bank
to finance the house. Her monthly inflow are ₹55,000. Her other expenses are ₹30,000. Should the
bank lend at 8.5% per annum compounded monthly, would she be able to afford EMIs?

Mr. Ganguly redeemed his Mutual Funds proceedings today. He invested ₹5 Lakhs for 6 Years. If his
bank account is credited with ₹12 Lakhs, how have his investments performed?

Mr. Tendulkar invests ₹10,000 in an SIP every month for 10 years. After 10 years, he received ₹20
Lakhs. How have his investments performed?

Mr. Dravid invested ₹50 Lakhs for 8 Years in a fixed income security. His savings amounted to ₹1
Crore at the time of withdrawal. How much returns did his investments fetch?

Ms. Raj will receive retirement benefits ₹2.5 Crores from BCCI. Ms. Raj would like to invest the
entire corpus in a Hybrid fund that earns 12% p.a. She needs ₹10 Crores to start her NGO. How
long will she wait to start her NGO?

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Financial Plan of 909782363.xlsx and Family

Ms. Kaur plans a world tour. She plans to accumulate ₹20,00,000 for the tour. She can save
₹2,50,000 annually and her savings earn 10% p.a. How long will she wait to make her world tour?

Mr. Bumrah is planning to buy a car after 5 years when it is expected to cost ₹50 Lakhs. He invests
₹30 Lakhs today. If his savings earn a compound annual interest of 12%, will he able to reach his
goal?
Mr. Jadeja wants to invest ₹1 lakh in an instrument for 5 years expected to give 9% returns. How
much amount will the client get after 5 years?

Vijayraj has just sold a land which he had bought for 10 lacs in July 2004. He is elated as he got 50
lacs from the sale. If he invests this money in Mutual Funds for his retirement goal which is 20
years away. What would be the corpus he will have considering 12 % CAGR.

Vijayraj has sold a land last week after 17 years of purchase. He had bought the land in July 2004
for 10 lacs. He is elated as he got 50 lacs from the sale. Calculate the CAGR of his land investment.

Mr Nambidurai is 45 years old. He wants to invest in Mutual Funds to build a corpus of 1 Crore by
age 60. Calculate the monthly SIP amount required considering 12 % CAGR returns of his portfolio.

Mr Janakiraman wants to start SIP for her daughter’s higher education goal. She is 4 years old. He
would need money when she turns 18. Presently higher education costs 20 lacs. Calculate monthly
SIP amount required considering 10 % education inflation and 12 % CAGR of Mutual Funds.

Mr Ramesh wants to buy a flat costing 75 lacs. His Mutual Fund Portfolio is valued 15 lacs which he
will redeem for the house purchase. Remaining amount he is planning to take home loan for 30
years at 7 % interest monthly compounding. Calculate the EMI amount.

Mr Kannappan has just retired. He has got 100 lacs as retirement benefits. He wants to invest 50
lacs in SCSS,PMVVY and POMIS & remaining 50 lacs in Mutual Funds to get regular monthly
income. Calculate the monthly income (beginning of the month) for next 35 years considering 9 %
CAGR returns of his MF portfolio.

Mr. Muruganandam is a business man. He is aged 45 and wants to retire at 65. He wants to invest 5
lacs every year in Mutual Fund Portfolio (end of the year). Considering 12 % CAGR returns, what
would be his retirement kitty at age 65.

Mr. Thyagarajan, a senior executive in an MNC is retiring next year. He is planning to invest a large
chunk of his retirement benefits in Mutual Funds to get regular annual income of 12 lacs (beginning
of the month) for next 30 years. Calculate the investment amount required considering 9 %
Portfolio CAGR & 6 % Inflation.

Amar has opted for PMVVY. He will invest 15 lacs and receive a monthly pension (at the end) of
9250 for 10 years.
After 10 years, he will receive 15 lacs back. Calculate the nominal & effective returns Amar will earn
from this instrument.

Mahel wants to buy a car after 3 years which is expected to cost ₹20 Lakhs then. Considering his
investments fetch 10% returns, how much should he invest now?

Prepared by Sadique Neelgund, CFP Page 19 of

Financial Plan of 909782363.xlsx and Family

Step 2 - Enter what is already available and figure out what to find
Rate NPER PV FV PMT

Prepared by Sadique Neelgund, CFP Page 20 of

Financial Plan of 909782363.xlsx and Family

Prepared by Sadique Neelgund, CFP Page 21 of

Financial Plan of 909782363.xlsx and Family

Prepared by Sadique Neelgund, CFP Page 22 of

 Financial Plan of 909782363.xlsx and Family

and figure out what to find Step 3 - Find out using

No. of Payments TVM Calculator & Enter
Type No. of Compounding p.a. answer
p.a

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Financial Plan of 909782363.xlsx and Family

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Financial Plan of 909782363.xlsx and Family

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 Rate of Returns - Questions &
Question 1

Rohan Malhotra has the habit of investing the accumulated surplus left after meeting all the expenses on a yearly
for 6 years. In the 7th year his investments grew to Rs. 5,09,120 which he withdraws. He wants to see how well hi

Year Amount
Year 1 -99,000
Year 2 -78,000
Year 3 -45,000
Year 4 -52,000
Year 5 -21,000
Year 6 -69,000
Year 7 509,120
IRR 8.60%

Question 2

Rohan is entitled to a performance based bonus when his target his achieved. The frequency of achieving the targ
Whenever he received the bonus, he invested in Liquid Funds for emergency corpus as per below table. Today (02
1,54,000. Calculate the performance of his investments in Liquid funds

Year Amount
1-Jan-19 -25,000
15-Mar-19 -30,000
16-May-19 -35,000
1-Aug-19 -20,000
28-Sep-19 -15,000
29-Oct-19 -25,000
2-Nov-19 154,000
XIRR 6.42%

Question 3

Nisha has opened a Savings Bank account at ABC Bank which gives 4% p.a. compouded quarterly. What will be the

Enter Nominal Rate 4%

Enter Frequency 4
 Effective Rate = 4.06%

Question 4

Rohan’s has redeemed some of his investments and realized that he earned 12% returns on the same. He, howeve
know the returns he would earn after paying the tax.

Enter Nominal Rate 12%

Enter Tax Rate 10%
Tax Adjusted Return = 10.80%

Question 5

Rohan Malhotra is planning House after 5 years. He will invest in Mutual Funds till the goal year which is expected
expected to increase 8% p.a. in next 5 years. He wants to know his expected increase in purchasing power from in

Enter Nominal Rate 12.0%

Enter Inflation 8.0%
Real Rate of Return = 3.70%

Question 6
Rohan had bought a house at 20 Lakhs 12 years ago which he sold at 80 Lakhs recently. He was happy that his inve
the absolute returns and CAGR he earned.

Enter Present Value 2,000,000

Enter Future Value 8,000,000
Absolute Returns = 300%
CAGR = 12.2%

Question 7

Bhavesh invested 5,00,000 in an FD for 5 years which is giving him an interest of 5% p.a. He is in the 20% tax brac
return.

Enter Nominal Rate 5.00%

Enter Tax Rate 20.00%
Tax Adjusted Return = 4.00%
Enter Inflation 7.00%
Tax Adjusted Real Rate -2.80%
Question 8

An investment giving 10% nominal rate is compounded monthly. What is the effective rate?

Enter Nominal Rate 10.00%

Enter Frequency 12
Effective Rate 10.47%

Question 9

Rajnish invests different amounts on different dates to accumulate funds for house purchase down payment. Toda
10,00,000. Calculate the performance of his investments.

Year Amount
1-Jan-19 -220,000
15-Jun-19 -170,000
16-Jan-20 -190,000
1-Aug-20 -100,000
2-Feb-21 -220,000
1-Jul-21 1,000,000
XIRR 7.14%

Question 10

If Harish pays 10% Capital Gains tax on his equity investments which gave him 14.5% CAGR. What is the Tax Adjus

Enter Nominal Rate 14.5%

Enter Tax Rate 10.0%
Tax Adjusted Return = 13.05%

Question 11

Saurabh has been investing in Mutual funds for last 15 years. His portfolio is currently valued at one crore. His por
period CPI inflation has been 8 %.
Calculate Real Rate of Returns.

Enter Nominal Rate 13.0%

Enter Inflation 8.0%
Real Rate of Return = 4.63%

Question 12

Axis Blue Chip Fund Gr Reg was launched on 5th Jan 2010 with NAV of 10. As of 29th August 2022 , NAV was 43.49

Year Amount
 5-Jan-10 -10.00
29-Aug-22 43.49
XIRR 12.32%

Question 13

Sensex made its debut on April 1, 1979 with a base value of 100. It rose to 59,537 on 30th August 2022.
Calculate the Annualized Growth Rate of Sensex.

Year Amount
1-Apr-79 -100.00
30-Aug-22 59,537.00
XIRR 15.84%

Question 14

Narayan had invested Rs 10,000 in a Mutual Fund Scheme on 26-Feb-15. Below are withdrawals made by him on t
19-SEP-16 Rs 2,000
4-OCT-17 Rs 3,000
15-SEP-18 Rs 4,000
31-JAN-19 Rs 3,000
23-AUG-20 Rs 2,000

After his last withdrawal, there are no units left in the scheme. Calculate the returns earned by him on the scheme

Year Amount
26-Feb-15 -10,000
19-Sep-16 2,000
4-Oct-17 3,000
15-Sep-18 4,000
31-Jan-19 3,000
23-Aug-20 2,000
XIRR 10.54%
Rohit is evaluating a scheme of an insurance company where he has to pay a single premium of 1 lakh upfront and
years .
Question 15
Year 1 Rs 23,750
Year 2 Rs 23,750
Year 3 Rs 23,750
Year 4 Rs 23,750
Year 5 Rs 23,750
Year Amount
Calculate the annualized Year
returns
0 offered by the scheme.
-100,000
Year 1 23,750
Year 2 23,750
Year 3 23,750
Year 4 23,750
Year 5 23,750
IRR 6.02%

Question 16

Vijayraj has sold a land last week. He had bought the land 22 years ago for 10 lacs. He is elated as he got 50 lacs fr
his land investment
 Enter Present Value 1,000,000
Enter Future Value 5,000,000
Absolute Returns = 400%
CAGR = 7.6%

Question 17

Senthil has opted for PMVVY. He will invest 15 lacs and receive a monthly pension (at the end) of Rs 9,250 for 10 y
Calculate the nominal & effective returns Senthil will earn from this instrument.

Enter Nominal Rate 7.40%

Enter Frequency 12
Effective Rate 7.66%

Question 18
You want to calculate growth of an investment for your client which gives 12% effective rate. Calculate the Nomin

Enter Effective Rate 12.00%

Enter Frequency 12
Nominal Rate 11.39%

Question 19
Prakash wants to open a Savings Bank account. Bank 'A' gives 3% p.a. compouded quarterly whereas bank 'B' give
higher effective interest rate ?
Bank -A
Enter Nominal Rate 3%
Enter Frequency 4
Effective Rate = 3.03%

Question 20
Harsh Goenka has an investment portfolio of 5 Crore. He has to pay 10% Capital Gains tax on his equity investmen
Adjusted return which Harsh earned?

Enter Nominal Rate 15.5%

Enter Tax Rate 10.0%
Tax Adjusted Return = 13.95%

Question 21

Gaurav invests 1 lakh every year for 4 years soon after he gets his bonus. In the 5th year his investments grow to R
wants to see how well his investment has performed?

Year Amount
Year 1 -100,000
Year 2 -100,000
Year 3 -100,000
 Year 4 -100,000
Year 5 500,000
IRR 9.13%

Question 22

Gaurav invests different amounts whenever he has the surplus on different dates to accumulate funds for going o
Mutual Funds as per below table. Today on July 1, 2020 his corpus has grown to Rs. 8,50,000. Calculate the perfor

Year Amount
1-Jan-17 -120,000
15-Jun-17 -150,000
16-Jan-18 -90,000
1-Aug-18 -90,000
2-Feb-19 -120,000
28-Oct-19 -130,000
1-Jul-20 850,000
XIRR 9.11%

Question 23

Rajesh has opened a Savings Bank account at XYZ Bank which gives 6% p.a. compouded twice a year. What will be

Enter Nominal Rate 6%

Enter Frequency 2
Effective Rate 6.09%

Question 24

Jagan has redeemed some of fixed deposits earning 7% returns on the same. He, however is liable to pay 20% Tax
would will earn after paying the tax.

Enter Nominal Rate 7%

Enter Tax Rate 20%
Tax Adjusted Return 5.60%

Question 25

Gaurav Malhotra is planning to buy a Luxury car after 4 years. He will invest in Mutual Funds to achieve his goal an
price of luxury cars is expected to increase 6% p.a. He wants to know his expected increase in purchasing power d

Enter Nominal Rate 10.0%

Enter Inflation 6.0%
Real Rate of Return = 3.77%

Question 26

Rohan had bought a house at 20 Lakhs 15 years ago, which he sold at 1 Crore recently. He was happy that his inve
returns and CAGR he earned.

Enter Present Value 10,000,000

 Enter Future Value 2,000,000
Absolute Returns 400%
CAGR 11.3%

Question 27

Hemanth purchased an traditional insurance policy, he paid 1,24,572 as annual premium for first 10 years, the po
on maturity in 17th year, he wants know the actual returns on his investments

year 1 -124,572
year 2 -124,572
year 3 -124,572
year 4 -124,572
year 5 -124,572
year 6 -124,572
year 7 -124,572
year 8 -124,572
year 9 -124,572
year 10 -124,572
year 11 0
year 12 0
year 13 0
year 14 0
year 15 0
year 16 0
year 17 2,569,500
IRR 6.35%

Question 28

Anu invested 1,00,000 in an FD for 3 years which is giving her an interest of 6% p.a. She is in the 30% tax bracket
adjusted return and tax adjusted real return.

Tax Adjusted Return

Enter Nominal Rate 6%
Enter Tax Rate 30%
Tax Adjusted Return = 4.20%

Real Rate of Return

Enter Nominal Rate 6.0%
Enter Inflation 5.0%
Real Rate of Return = 0.95%

Tax adjusted Real Return

Enter Nominal Rate 6.00%
Enter Tax Rate 30.00%
Tax Adjusted Return = 4.20%
Enter Inflation 5.00%
 Tax Adjusted Real Rate -0.76%

Question 29

Ram purchased a house in Year 2000 for 25,00,000 and sold it in 2020 for 1,50,00,000. What are the Absolute retu

Enter Present Value 2,500,000

Enter Future Value 15,000,000
Absolute Returns 500%
CAGR 9.37%

Question 30

PMYY is a LIC policy which is available to Senior citizens. This scheme offers 7.6% pension per year but compounde

Enter Nominal Rate 7.60%

Enter Frequency 4
Effective Rate 7.82%
Questions & Solutions

the expenses on a yearly basis. He has made investment as per the below table
wants to see how well his investments performed?

ncy of achieving the target and bonus amount is however fluctuating.

er below table. Today (02nd November, 2019) his emergency corpus is Rs.

uarterly. What will be the effective interest rate which she will get
 on the same. He, however is liable to pay 10% Tax on his returns. He wants to

al year which is expected to deliver 12% p.a. returns. Whereas the house price is
purchasing power from investments i.e. the real returns.

e was happy that his investment had quadrupled (become 4 times). Calculate

He is in the 20% tax bracket and the inflation is 7%. Cacluate tax adjusted real
te?

hase down payment. Today on July 1, 2021 his corpus has grown to Rs.

GR. What is the Tax Adjusted return which Hairsh earned?

ued at one crore. His portfolio has delivered 13 % annualized returns. During the

ust 2022 , NAV was 43.49. Please calculate the Annualised Returns.
h August 2022.

drawals made by him on the corresponding dates:-

ed by him on the scheme.

ium of 1 lakh upfront and expected to receive below cash flows for the next 5

elated as he got 50 lacs from the sale. Calculate the Absolute & CAGR returns of
 end) of Rs 9,250 for 10 years. After 10 years, he will receive 15 lacs back.

ate. Calculate the Nominal Rate.

rly whereas bank 'B' gives 3 % compouded monthly . Which bank is offering

Bank -B
Enter Nominal Rate 3%
Enter Frequency 12
Effective Rate = 3.042%

x on his equity investments which gave him 15.5% CAGR. What is the Tax

his investments grow to Rs. 5,00,000 which he withdraws for buying a car. He
mulate funds for going on an international vacation with fmaily. He invested in
000. Calculate the performance of his investments.

wice a year. What will be the effective interest rate which he will get

r is liable to pay 20% Tax on his returns. He wants to know the actual returns he

nds to achieve his goal and is expected to deliver 10% p.a. returns. Whereas the
se in purchasing power due to his investments i.e. the real returns.

e was happy that his investment had grown 5 times. Calculate the absolute
m for first 10 years, the policy matured after 16 years and he received 25,69,500

is in the 30% tax bracket and the inflation is 5%. Cacluate her real return, tax
hat are the Absolute returns vs CAGR in 20 years?

per year but compounded quarterly. What is the effective rate on the scheme
 Rate of Returns - Question
Question 1

Rohan Malhotra has the habit of investing the accumulated surplus left after meeting all the expenses on a yearly
for 6 years;

Year 1 - 99000 , Year 2 - 78000 , Year 3 - 45000 , Year 4 - 52000 , Year 5 - 21000 , Year 6 - 69000

In the 7th year his investments grew to Rs. 5,09,120 which he withdraws. He wants to see how well his investmen

Question 2

Rohan is entitled to a performance based bonus when his target his achieved. The frequency of achieving the targ
fluctuating. Whenever he received the bonus, he invested in Liquid Funds for emergency corpus as per table below

Today (02nd November, 2019) his emergency corpus is Rs. 1,54,000. Calculate the performance of his investment

Date Amount
1-Jan-19 -25,000
15-Mar-19 -30,000
16-May-19 -35,000
1-Aug-19 -20,000
28-Sep-19 -15,000
29-Oct-19 -25,000
2-Nov-19 154,000

Question 3

Nisha has opened a Savings Bank account at ABC Bank which gives 4% p.a. compouded quarterly. What will be the

Question 4

Rohan’s has redeemed some of his investments and realized that he earned 12% returns on the same. He, howeve
He wants to know the returns he would earn after paying the tax.

Question 5

Rohan Malhotra is planning House after 5 years. He will invest in Mutual Funds till the goal year which is expected
house price is expected to increase 8% p.a. in next 5 years. He wants to know his expected increase in purchasing
returns.

Question 6
Rohan had bought a house at 20 Lakhs 12 years ago which he sold at 80 Lakhs recently. He was happy that his inve
Calculate the absolute returns and CAGR he earned.

Question 7

Bhavesh invested 5,00,000 in an FD for 5 years which is giving him an interest of 5% p.a. He is in the 20% tax brac
adjusted real return.

Question 8

An investment giving 10% nominal rate is compounded monthly. What is the effective rate?

Question 9

Rajnish invests different amounts on different dates to accumulate funds for house purchase down payment. Toda
Rs. 10,00,000. Calculate the performance of his investments.

Date Amount
1-Jan-19 -220,000
15-Jun-19 -170,000
16-Jan-20 -190,000
1-Aug-20 -100,000
2-Feb-21 -220,000
1-Jul-21 1,000,000

Question 10

If Harish pays 10% Capital Gains tax on his equity investments which gave him 14.5% CAGR. What is the Tax Adjus

Question 11
Saurabh has been investing in Mutual funds for last 15 years. His portfolio is currently valued at one crore.His portf
returns. During the period CPI inflation has been 8 %.
Calculate Real Rate of Returns.

Question 12
Axis Blue Chip Fund Gr Reg was launched on 5th Jan 2010 with NAV of 10. As of 29th August 2022 , NAV was 43.49

Question 13

Sensex made its debut on April 1, 1979 with a base value of 100. It rose to 59537 on 30th August 2022.
Calculate the Annualized Growth Rate of Sensex.

Question 14
Narayan had invested Rs 10,000 in a Mutual Fund Scheme on 26-Feb-15. Below are withdrawals made by him on t
19-SEP-16 Rs 2000
4-OCT-17 Rs 3000
15-SEP-18 Rs 4000
31-JAN-19 Rs 3000
23-AUG-20 Rs 2000

After his last withdrawal, there are no units left in the scheme. Calculate the returns earned by him on the scheme

Question 15

Rohit is evaluating a scheme of an insurance company where he has to pay a single premium of 1 lakh upfront and
the next 5 years .

Year 1 Rs 23,750
Year 2 Rs 23,750
Year 3 Rs 23,750
Year 4 Rs 23,750
Year 5 Rs 23,750

Calculate the annualized returns offered by the scheme.

Question 16

Vijayraj has sold a land last week. He had bought the land 22 years ago for 10 lacs. He is elated as he got 50 lacs fr
CAGR returns of his land investment

Question 17
Senthil has opted for PMVVY. He will invest 15 lacs and receive a monthly pension (at the end) of 9250 for 10 year
back. Calculate the nominal & effective returns Senthil will earn from this instrument.

Question 18

You want to calculate growth of an investment for your client which gives 12% effective rate. Calculate the Nomin

Question 19

Prakash wants to open a Savings Bank account. Bank 'A' gives 3% p.a. compouded quarterly whereas bank 'B' give
offering higher effective interest rate ?

Question 20

Harsh Goenka has an investment portfolio of 5 Crore. He has to pay 10% Capital Gains tax on his equity investmen
the Tax Adjusted return which Harsh earned?

Question 21
Gaurav invests 1 lakh every year for 4 years soon after he gets his bonus. In the 5th year his investments grow to R
a car. He wants to see how well his investment has performed?
Year Amount
Year 1
Year 2
 Year 3
Year 4
Year 5

Question 22

Gaurav invests different amounts whenever he has the surplus on different dates to accumulate funds for going o
invested in Mutual Funds as per below table. Today on July 1, 2020 his corpus has grown to Rs. 8,50,000. Calculate

Year Amount
1-Jan-17 -120,000
15-Jun-17 -150,000
16-Jan-18 -90,000
1-Aug-18 -90,000
2-Feb-19 -120,000
28-Oct-19 -130,000

Question 23

Rajesh has opened a Savings Bank account at XYZ Bank which gives 6% p.a. compouded twice a year. What will be
get

Enter Nominal Rate 6%

Enter Frequency 2
Effective Rate

Question 24
Jagan has redeemed some of fixed deposits earning 7% returns on the same. He, however is liable to pay 20% Tax
actual returns he would will earn after paying the tax.
Enter Nominal Rate
Enter Tax Rate
Tax Adjusted Return 0.00%

Question 25

Gaurav Malhotra is planning to buy a Luxury car after 4 years. He will invest in Mutual Funds to achieve his goal an
Whereas the price of luxury cars is expected to increase 6% p.a. He wants to know his expected increase in purcha
real returns.

Enter Nominal Rate

Enter Inflation
Real Rate of Return =

Question 26

Rohan had bought a house at 20 Lakhs 15 years ago, which he sold at 1 Crore recently. He was happy that his inve
absolute returns and CAGR he earned.
 Enter Present Value
Enter Future Value
Absolute Returns
CAGR

Question 27

Hemanth purchased an traditional insurance policy, he paid 1,24,572 as annual premium for first 10 years, the po
received 25,69,500 on maturity in 17th year, he wants know the actual returns on his investments

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
IRR

Question 28
Anu invested 1,00,000 in an FD for 3 years which is giving her an interest of 6% p.a. She is in the 30% tax bracket
return, tax adjusted return and tax adjusted real return.

Tax Adjusted Return

Enter Nominal Rate
Enter Tax Rate
Tax Adjusted Return = 0.00%

Real Rate of Return

Enter Nominal Rate
Enter Inflation
Real Rate of Return = 0.00%

Tax adjusted Real Return

Enter Nominal Rate
Enter Tax Rate
Tax Adjusted Return = 0.00%
 Enter Inflation
Tax Adjusted Real Rate 0.00%

Question 29

Ram purchased a house in Year 2000 for 25,00,000 and sold it in 2020 for 1,50,00,000. What are the Absolute retu

Enter Present Value

Enter Future Value
Absolute Returns #DIV/0!
CAGR 10.00%

Question 30

PMYY is a LIC policy which is available to Senior citizens. This scheme offers 7.6% pension per year but compounde
the scheme

Enter Nominal Rate

Enter Frequency
Effective Rate Err:502
urns - Questions

ng all the expenses on a yearly basis. He has made investment as follows

ar 6 - 69000

to see how well his investments performed?

requency of achieving the target and bonus amount is however

gency corpus as per table below.

performance of his investments in Liquid funds

ded quarterly. What will be the effective interest rate which she will get?

turns on the same. He, however is liable to pay 10% Tax on his returns.

he goal year which is expected to deliver 12% p.a. returns. Whereas the
xpected increase in purchasing power from investments i.e. the real
ntly. He was happy that his investment had quadrupled (become 4 times).

% p.a. He is in the 20% tax bracket and the inflation is 7%. Cacluate tax

tive rate?

purchase down payment. Today on July 1, 2021 his corpus has grown to

% CAGR. What is the Tax Adjusted return which Hairsh earned?

tly valued at one crore.His portfolio has delivered 13 % annualized

h August 2022 , NAV was 43.49. Please calculate the Annualised Returns.

n 30th August 2022.

 withdrawals made by him on the corresponding dates:-

s earned by him on the scheme.

premium of 1 lakh upfront and expected to receive below cash flows for

He is elated as he got 50 lacs from the sale. Calculate the Absolute &

at the end) of 9250 for 10 years. After 10 years, he will receive 15 lacs
nt.

ctive rate. Calculate the Nominal Rate.

quarterly whereas bank 'B' gives 3 % compouded monthly . Which bank is

ins tax on his equity investments which gave him 15.5% CAGR. What is

year his investments grow to Rs. 5,00,000 which he withdraws for buying
o accumulate funds for going on an international vacation with fmaily. He
grown to Rs. 8,50,000. Calculate the performance of his investments.

uded twice a year. What will be the effective interest rate which he will

owever is liable to pay 20% Tax on his returns. He wants to know the

ual Funds to achieve his goal and is expected to deliver 10% p.a. returns.
his expected increase in purchasing power due to his investments i.e. the

ntly. He was happy that his investment had grown 5 times. Calculate the
emium for first 10 years, the policy matured after 16 years and he
his investments

a. She is in the 30% tax bracket and the inflation is 5%. Cacluate her real
00. What are the Absolute returns vs CAGR in 20 years?

ension per year but compounded quarterly. What is the effective rate on