CFP: Certified Financial Planner

CFP: Certified Financial Planner practice questions, page 3 of 12, with answer review and explanations.

Question 11

Mohan invested Rs. 10,000 in XYZ mutual fund on 1/1/2000. He received cash dividends of Rs. 200, Rs. 300, Rs. 200 & Rs. 300 on 31/12/2000, 31/12/2001, 31/12/2002 & 31/12/2003 respectively. He reinvested all the dividends received in the fund. He sold the fund on 1/1/2004. What is the IRR if he sold the fund for Rs. 15,000?

  1. 8.53%
  2. 8.83%
  3. 8.00%
  4. 10.67%

Question 12

Ajay has a net worth of Rs. 2,00,000 at the beginning of the Financial Year 2006-2007. The following transactions occurred during the Financial Year 2006-2007 with respect to his account. 1. Paid off credit card liability worth Rs. 10,000 using savings account 2. Transferred Rs. 4,000 from savings account to PPF account 3. Purchased Rs. 2,000 of furniture with credit. What is the net worth of Ajay after these transactions?

  1. Rs. 1,90,000.
  2. Rs. 1,84,000.
  3. Rs. 1,98,000.
  4. Rs. 2,00,000

Question 13

Vishal is working with Amex Ltd since October 1, 1994. He is entitled to a basic salary of Rs. 6,000 pm. Dearness Allowance is 40% of Basic Salary for retirement benefits. He retired from his job on January 1, 2008 (3 months before the end of F.Y 2008) and shifted to his village. He is entitled to the following benefits at the time of retirement. Gratuity = Rs. 98,000. Pension from January 1, 2008 = Rs. 2,000 per month. Payment from recognized PF = Rs. 3,00,000. Encashment of earned leave for 150 days = Rs. 36,000. He was entitled to 40 days leave for every completed year of service. He got 50% of his pension commuted in lump sum w.e.f April 1, 2008 and received Rs. 1,20,000 as commuted pension. Vishal contributes Rs. 900 per month to RPF to which his employer contributes an equal amount. What will be the amount of uncommitted pension for Vishal that will form part of his total income for the A.Y. 2008-09?

  1. NIL
  2. Rs. 4,000.
  3. Rs. 6,000.
  4. Rs. 1,000.

Question 14

" Member should act with care and skill in providing Financial Planning Services". This Forms part of ________ in the code of Ethics

  1. Fairness
  2. Diligence
  3. Integrity
  4. Competence

Question 15

The NAV of a debt oriented Mutual Fund is 22.25 cum dividend. It has declared a dividend of 6%, record date being 25th June 2006. Calculate the dividend receivable by an individual investor if he holds 10,000 units

  1. Rs. 4,653.60
  2. Rs. 6,000.00
  3. Rs. 5,158.50
  4. Rs. 5,250.00