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Retirement Planning & Employees Benefits
PART I (OBJECTIVE)
25 × 1 = 25 Marks
Choose most appropriate answer from the alternatives given. Each question carries 1 mark.
1. In Which year of opening the account can the subscriber to a PPF take first loan?
a) Seventh year
b) Fourth year
d) Third year
In the event of death of an minor subscriber, the balance of PPF account is payable to
a) The guardian
b) Legal heirs of the minor
e) None of the above
Minimum Administrative charges Employer has to pay towards EPS 1995 is ____________.
Salary for the purpose of EDLI will include :
a) Basic + D.A.
b) Basic + D.A. + Retaining Allowance
c) Basic + D.A. + Retaining Allowance + Cash value of food concessions.
d) Basic + D.A. ( forming part of retirement benefit ) + Fixed % of commission.
What is the minimum number of employees in an establishment for it to come under the
purview of the Gratuity Act 1972?
a) 20 or above 20
b) Above 20
c) 10 or above 10
d) Above 10
I open my PPF account on 1‐4‐2007. When it will mature?
9% and tax rate is 30%.O .498395. What is the interest rate p. a) 100. 5 d) 10. 7.a. 1952? a) 10 years membership b) 7 years membership c) 5 years membership d) 3 years membership 8.a.T.___ and in multiples of Rs.a. He wishes to increases his standard of living 2% every year till retirement.16 d) None of the above 12. a) 16.5% p.35000+ 25% of the amount in excess of balance in PF 9.25% c) 8. Mr.? a) Rs. 5 10.100000 p.1 lac at ROI is 12% p. What his EMI will be? Page 2 of 7 P.60000 c) Rs.181136. If inflation rate is 4.a. earned by an investor on KVP? a) 8% b) 8.____. to maintain his standard of living. Minimum how many years membership is required to take the advance from PF for construction of house under the EPF Act. A person has taken a loan of Rs. The required rate of return to maintain the value of an investment is ______. Y aged 30 spends Rs. 10 c) 100. The minimum monthly installment with which a post office RD account can be opened is Rs.35000 d) Rs. What is the minimum amount under EDLI scheme? a) Rs. What amount will be required by him at age 60 if inflation rate is 5.41% d) None of the above 14. for 5 years.875495. What is the contribution of Government in Genera Provident Fund? a) 12% of Basic Salary b) 6% of Basic Salary c) 10% of Basic Salary d) NIL 13.45000 b) Rs. 10 b) 500.13 b) Rs.33% b) 7% c) 5% d) None of the above 11.52 c) Rs.
d) NIL 21.386% p.a. 30% diversified equity. The limit of maximum deposit in case of MIS account opened in single name is ___ a) Rs. He wants to know what will be the future value of his investment after 4 years if ROI is 12% p. and 40% medium term debt c) 80% long‐term debt.540585.4lacs as gratuity after rendering service of 25 years.67 19. compounded monthly. c) 12% p. If the interest rate is 12% p. Which of the following is likely to be an appropriate asset allocation strategy for them? a) 20% Sectoral equity.122445. find taxable gratuity? a) 144230.900000 c) Rs.100000 d) Rs.10000 p. b) 12. 30% long‐term debt.9558.77 b) 350000 c) 255769. Sharma are aged 55 and 58 years respectively. 2000 p. 40% cash/ liquid investments. 20% long‐term debt b) 10% sectoral equity.m. Maximum how much one employer can contribute for his employee under EPS‐95? a) Rs. Interest credited to Un‐recognized Provident Fund shall be _______ Page 3 of 7 P. Both expect to work till they turn 65. His last drawn salary was Rs. Mr. Sharma has invested Rs.21 b) Rs. 60% diversified equity.500000 b) Rs. for 4 years in the beginning of every months. Calculate effective rate of interest? a) 11.123669.33% of employee’s salary 20.m.21 d) Rs.a.a) b) c) d) 2202. Sohail got Rs.O . d) None of the above 18.239 c) 12% of employee’s basic salary d) 8.a. 20% medium term debt d) 30% Sectoral equity.a. Mrs.T.450000 17.541 b) Rs.65 c) Rs. Mr.68% p. 16.42 27741 2224.44 None of the above 15. Their only goal is to fund their retirement.a. 20% diversified equity.? a) Rs. & Mr. If his organization is covered under the Gratuity Act.
m. Each question carries 3 marks.5% Exempt up to 8.400000 in Monthly Income Scheme of Post Office on 15 May 2009.300 p.420000 c) Rs. What is retrenchment compensation available under the Industrial Dispute Act.m.67 b) Rs. To prepare a good retirement planning of a client a financial planner has to undertake an effective _______ process. Anil Gupta has been saving Rs.T.73 27. The minimum disability pension given to an employee is …. d) Rs.634749.He expects to live Page 4 of 7 P.400000 d) Rs. He will retire at age 60. Which of the following is not a cause of wealth erosion? a) Fall in interest rates b) Rise in the cost of living c) Inadequate life insurance cover d) All of the above 25. b) Rs. 26.5% 22. c) Rs. a) b) c) d) e) Fully exempt Fully taxable Exempt up to 12% Exempt up to 9. 1947? a) 15 day’s average pay for every completed year of service or part thereof in excess of 6 months b) 15 day’s average pay for every completed year of service c) 7 day’s average pay for every completed year of service or part thereof in excess of 6 months d) 7 day’s average pay for every completed year of service 24.m. A person deposits Rs. a) Rs. His age is 30 years now. How much amount he will receive on maturity? a) Rs.422666. 23.350 p.450 p.m. a) Consultation b) Counseling c) Conversation d) communication SECTION 2 10 × 3 = 30 Marks Choose most appropriate answer with showing working/reason. Mr.105000 per year for the past 5 years and continues to save till age 50.O .250 p.
and retired on 1st A January 2009. I want to invest Rs.m. Salary at the time of retirement is Rs. after completing 30 years 9 months. for next 6 years and then Rs.295000. Average salary for previous 10 months is Rs.72% d) 0.another 15 years after retirement.11500 p.4000 annually for 4 years. He got leave encashment of Rs. Calculate how much amount one can avail as first withdrawal facility from the details below : Balance in PPF A/c on 31/03/94 60000 31/03/95 168400 31/03/96 192000 31/03/97 240000 31/03/98 325000 31/03/99 415000 a) 120000 b) 96000 c) 48000 d) 162500 e) None of the above 29. What will be his exempted leave salary amount? a) 255000 b) 267750 c) 27250 d) None of the above 32. is not covered under Payment of Gratuity Act? a) Rs. What will be the accumulated sum he would have at age 55 if ROI is 13% p. compounded quarterly? a) Rs. Mr.144925 d) Rs. He availed 285 leaves during the service.T.172500 30. His last drawn salary is Rs.9350.649% c) 0.a.His last 10 months average salary is 25500. Calculate the exempted amount of gratuity if XYZ Ltd. Actual gratuity received is Rs. PPF a/c is opened on 21/11/1993.27000. Y joined on 1st January 1989 in XYZ Ltd. Rs. If the interest rate is 9% p.8000 for next 4 years.a.a.35869855 d) None of the above 28.38% b) 8.140250 c) Rs.455000. find the Future value after 15 years if all payments given in the beginning of year? Page 5 of 7 P.350000 b) Rs.O .5000 p.38939977 b) Rs. X retired from XYZ Ltd.a. Calculate monthly effective rate of interest per month? a) 9. If ROI is 14% p. Mr.78% 31.34263794 c) Rs.
10 lacs for 5 years at rate of interest 13.239679 None of these 33.a. for his house hold expenses to maintain his standard of living.210244.408 e) None of the following 37. If the ROI is 10% p.26 b) 1998510. He wants to come back India at age 60 and continue saving till 60.T. X has taken a loan of Rs. His life expectancy is 80. X needs Rs..75 d) 1981811.e.5% p.10 d) None of the above 35. Mr.a.99 Rs.a. a) b) c) d) e) Rs.a.a. for last 5 years.O .150000 p. After 18 years he will need Rs. Calculate his annual increase rate in standard of living? a) 3. d) None of the above SECTION 3 3 × 5 = 15 Marks Choose the most appropriate answer with showing working/reason.189000. as his household expenses.15 b) 69718.a. The EMI’s will start exactly after 5 years from now. Abhinav opened a PPF account on 31‐03‐2007 and deposited Rs.200000 p. Malik aged 40.a. Mr. all payments are in the beginning.55 b) 148406 c) 162937 d) None of the above 34. 36. Mr. Mr.2000 p.a.10 c) 63380. for next 5 years.a.a.49 Rs.350000 p. and inflation is 5.16% p.184424. How much he can spend monthly during Retirement period i. After that he has been increasing the PPF contribution by Rs.a. how much money should he invest today? a) 10363.5% p. an NRI has been saving Rs. Calculate what will be his accumulated balance in PPF account at the maturity? a) 1781028. Find the Interest paid in 3rd year? a) 79676.5% p.56 Rs. Gupta spends now Rs. b) 3% p.? Page 6 of 7 P. Mr.52 c) 1770195. from 60 to 80 if ROI is 10.1000 every year till its maturity up to the maximum limit possible.60000/‐ as the first contribution.1000/‐ per annum for 15 years and Rs. Each question carries 5 marks. c) 4% p.
50000 p. Write a detailed note on ‘Gratuity’? 41. Prepare his Retirement Plan after getting information you need? Page 7 of 7 P.52 102303. I want to ensure availability of Rs.m. Write a detailed note on Employees Provident Fund Scheme.48 719821. IInd year and IIIrd year) when they will be admitted in college at completed age 18 . and inflation is 5% p. in today’s term for both of them for three years (in the beginning of Ist years.? a) 95895 b) 85968 c) 78954 d) 92343 e) None of the above PART II (SUBJECTIVE) SECTION 4 5 × 3 =15 Marks Answer any five questions.3 lakh p. Dinesh gupta has two sons name Sarthak (age 7) and Moksh (age 3). 42. Mr. What is an annuity? Classify annuities with examples. Write a detailed note on ‘Voluntary Retirement Scheme’? 43.a. 1952? 46. Mr. What is Retirement Planning? What are the aspects to be considered while making retirement planning of a person? 40. Each question carries 3 marks. Write a note on Statutory Provident Fund Act 1925? SECTION 5 3 × 5 = 15 Marks Answer these questions. 45 years old working in Kotak Mahindra Bank. 45. What is the difference between Nominal rate of Interest and Effective rate of interest? Give examples also? 44. He comes to you for his retirement planning.a.a) b) c) d) 102707. Sharma. is earning Rs.T. I want to know how much should I invest yearly from now till one year before the last payment of college fees if ROI is 12% p. Each question carries 5 marks. Write detailed notes on a) Monthly Income Scheme of post office b) Senior Citizen Saving Scheme 47.97 None of the above 38.O .a. 39.