NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning
Mr. Iyer, aged 35, has monthly expenses of Rs 60,000 and wants an emergency fund covering 6 months of expenses. He has Rs 2,40,000 in a savings account earmarked for it. How much more must he accumulate?
He needs Rs 1,20,000 more. Six months of expenses at Rs 60,000 gives a target of Rs 3,60,000, and subtracting the Rs 2,40,000 already set aside leaves a shortfall of Rs 1,20,000.
- ARs 1,20,000Correct
- BRs 3,60,000
- CRs 1,80,000
- DRs 2,40,000
Explanation
Target = 6 x 60,000 = Rs 3,60,000. Shortfall = 3,60,000 - 2,40,000 = Rs 1,20,000. Rs 3,60,000 is the full target without deducting existing savings, and Rs 2,40,000 is the amount already held.
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