Excel Sums

1. Sumedha had finished investing a monthly SIP of Rs.12000 in a Debt Mutual Fund 3 years ago.
She had made this investment for a year. She asks you what pre-tax returns she had obtained on
her investment? (Value as on 31st March’2016 is Rs.173000)

2. Mahesh has invested in ULIP and the details are as given below:
Annual Premium–Rs.35,000; Term-10 yrs; S.A.-Rs.500000;
Premium Allocation Charge: 1st yr – 10%; 2&3 yr – 8%; 4&5 yr – 6%; and 1% thereafter;
Mortality Charges- 7.10 per thousand SA and increasing by 5% every year
Policy Admin fees- 720 p.a. and FMC-1.75%p.a., ULIP Growth Fund-10%p.a.
Calculate the investments value till maturity?

3. Sanjay wants to know compounded annual growth return (CAGR) on his ELSS
investment and also wants your advice to hold or moved out of ELSS investment

4. In order to meet the goal of higher education of his son after 15 years, a person chooses to invest
in two series of Inflation Indexed Bonds, each having a 10-year maturity period. One series is to
be invested immediately and the other after 5 years. A sum of Rs. 10 lakh is invested in the first
series, while the invested sum is increased to Rs. 15 lakh in the second series. The real coupon is
1.5% while average inflation over the entire period is estimated to be 5% p.a. The coupons to be
received and the maturity proceeds of individual bond series are invested in risk free instruments
at 6% p.a. till required for higher education. What would be the extent of accumulation for the
higher education goal?

5. Irawati proposes to invest in an upcoming housing project in suburban Mumbai for a flat worth
Rs.75, 00,000 today. She proposes to make the down payment of Rs.5, 00,000 immediately. The
balance amount is to be paid in installments to the builder, 15%of the balance amount on 1 st
April 2010, 30% on 1 st sep 2010, 30% on 1 st dec 2010and balance on 1 st April 2011.in the
meanwhile she has researched on various housing loan schemes offered by banks she finalized on
one of the bank that provides loan at fixed int.rate 10.5% p.a. disbursable as per the time schedule
agreed with the builder. The tenure of the loan is 15 years from the date of disbursement of first
installment and she pays the first EMI on 1 st may 2010.she want to know, what would be final
EMI payable after the full disbursement of loan amount
(A) Rs.84,300
(B) RS.78,740
(C) Rs. 78,681
(D) Rs. 77,377

Solution:
Part 1:
Date Loan amount EMI O/S bal Total Total
interest Principal
1/4/10 7000000*15% 11607 - - -
1/9/10 7000000*30%+1037690 35095 1037690 45723 12310
1/12/10 7000000*30%+3114566 58758 3114566 82163 23123
1/4/11 7000000*25%+5161348 78681 5161348 181816 53217

Wn1:
S E
N 15*12
I 10.5
Pv -7000000*15%
Pmt ?11607
Fv 0
p/y 12
c/y 12
AMRT= Pm1=1 , Pm2=5 , o/s bal=1037690 , total interest=45724 , Total Principle=12310

Wn2:
S E
N 180-5
I 10.5
Pv -(7000000*30%+1037690)
Pmt ?35095
Fv 0
p/y 12
c/y 12
AMRT= Pm1=1 , Pm2=3 , o/s bal=3114566 , total interest=82163 , Total Principle=23123

Wn3:
S E
N 175-3
I 10.5
Pv -(7000000*30%+3114566)
Pmt ?958758
Fv 0
p/y 12
c/y 12
AMRT= Pm1=1 , Pm2=4 , o/s bal=5161348 , total interest=181816 , Total Principle=53217

Part2:If construction is completed on 1/9/12 , find pre construction deduction and find deduction
u/s 24 and 80 c assuming SOP , LOP and DLOP
S E
N 172-4
I 10.5
Pv -(7000000*25%+5161348)
Pmt ?78681
Fv 0
p/y 12
c/y 12
AMRT= Pm1=49 , Pm2=60 ,Total Principle=348363 , therefore deduction u/s 80C=150000
 Pre construction deduction:
Interest=45723+82163+181816 (from 1/4/10 upto 1/4/11) + 714864 ( For yr 11-12, pm1=1,
pm2=12, total interest=solve) = 1024566

Deduction =1024566/5=204913

a) Assuming if property is SOP,

u/s 24= deduction allowed is 200000 out of 204913
80C= 150000 ( principle of home loan)

B) Assumin LOP an DLOP

Full interest allowed as deduction u/s 24
204913+(15-16) 595810 {pm1=49, pm2=60, Total interest}
=800723

80C= 150000

6. Money Back returns

7.FD v/s FMP

You advice Sanjay to invest 1500000 in his saving account in FMP of maturity of 1100 days.She
earlier opined to keep the same amount in FD with the same bank considering effective pre Tax return of
8.25% in both the instruments. You advice the advt of FMP over FD in the terms post tax annual
effective return.

Solution:

Step 1:

S B

N 1100

I 8.25

Pv -1500000

Pmt 0

Fv ?1904787.749

p/y 365
c/y 1

Step 2: FMP

FVC 1904787.749

-ICOA (1500000*1250/1125) 1666667

LTCG 238121

Tax (238121*20.6%) 49052.926

1=1500000

1100=1855735 (1904788-49052)

Step 4:

S B

N 1100

I ?7.32

Pv -1500000

Pmt 0

Fv 1855735

p/y 365

c/y 1

FD

Post tax return

8.25*(1-30.9%)=5.7

Difference=7.32-5.7=1.62
Therefore, FMP is better.