NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Miscellaneous Aspects of Retirement Planning
Caselet: Mrs. Rao, 45, has a Rs 40 lakh retirement corpus today and no further savings. At a 7% annual return, she wants the amount at 60 (15 years). Using (1.07)^15 = 2.76, what will the corpus be?
The corpus at age 60 will be Rs 1,10,40,000. Rs 40 lakh compounds for 15 years at 7% using the factor 2.76, so 40,00,000 multiplied by 2.76 gives the result.
- ARs 1,10,40,000Correct
- BRs 82,00,000
- CRs 1,00,00,000
- DRs 1,20,00,000
Explanation
Future value = 40,00,000 x 2.76 = Rs 1,10,40,000. Rs 82 lakh uses only simple growth at about 7% x 15 plus an error, and the others are rounded estimates not supported by the factor.
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