Question 1

Question 1: Write the correct alternative answer for each of the following questions. i. For different types of investments what is the maximum permissible amount under section 80C of income t

Accepted Answer

(A) ₹ 1,50,000 ii. A person has earned his income during the financial year 2017-18. Then his assessment year is…. (A) 2016 – 17 (B) 2018 – 19 (C) 2017 – 18 (D) 2015 – 16 Answer: (B) 2018 – 19 Question 2. Mr. Shekhar spends 60% of his income. From the balance he donates ₹ 300 to an orphanage. He is

Question 2

Question 3: Mr. Hiralal invested ₹ 2,15,000 in a Mutual Fund. He got ₹ 3,05,000 after 2 years. Mr. Ramniklal invested ₹ 1,40,000 at 8% compound interest for 2 years in a bank. Find out the per

Accepted Answer

Mr. Hiralal: Amount invested by Mr. Hiralal in mutual fund = ₹ 2,15,000 Amount received by Mr. Hiralal = ₹ 3,05,000 ∴ Mr. Hiralal’s profit = Amount received – Amount invested = 305000 – 215000 = ₹ 90000 Mr. Hirala’s percentage of profit = × 100 = 41.86%

Question 3

Question 4: At the start of a year there were ₹ 24,000 in a savings account. After adding ₹ 56,000 to this the entire amount was invested in the bank at 7.5% compound interest. What will be th

Accepted Answer

Here, P = 24000 + 56000 = ₹ 80000 R = 7.5%, n = 3 years Total amount after 3 years = 80000 (1 + 0.075)3 = 80000 (1.075)3 = 80000 x 1.242297 = 99383.76 ∴ The total amount after 3 years is ₹ 99383.76.

Question 4

Question 5: Mr. Manohar gave 20% of his income to his elder son and 30% to his younger son. He gave 10% of the balance income as donation to a school. He still had ₹ 1,80,000 for himself. What

Accepted Answer

Let the income of Mr. Manohar be ₹ x. Amount given to elder son = 20% of x Amount given to younger son = 30% of x Total amount given to both sons = (20 + 30)% of x = 50% of x ∴ Amount remaining with Mr. Manohar = (100 – 50)% of x = 50% of x 50 = × 100 = 0.5 x He gave 10% of the balance income as don

Question 5

Question 6: Kailash used to spend 85% of his income. When his income increased by 36% his expenses also increased by 40% of his earlier expenses. How much percentage of his earning he saves no

Accepted Answer

Let the income of Kailash be ₹ x. Kailash spends 85% of his income. ∴ Kailash’s expenditure = 85% of x = × x = 0.85 x Kailash’s income increased by 36%. ∴ Kailash’s new income = x + 36% of x = x + × x = x + 0.36x = 1.36x Kailash’s expenses increased by 40%. ∴ Kailash’s new expenditure = 0.85x + 40%

Question 6

Question 7: Total income of Ramesh, Suresh and Preeti is ₹ 8,07,000. The percentages of their expenses are 75%, 80% and 90% respectively. If the ratio of their savings is 16 : 17 : 12, then fi

Accepted Answer

Let the annual income of Ramesh, Suresh and Preeti be ₹ x, t y and ₹ z respectively. Total income of Ramesh, Suresh and Preeti = ₹ 8,07,000 ∴ x + y + z = 807000 …(i) ∴ Savings of Ramesh = 25% of x = ₹ ..(ii) Savings of Suresh = 20% of y = ₹ …(iii) Savings of Preeti = 10% of z = ₹ …..(iv)

Question 7

Question 8: Compute the income tax payable by following individuals. i. Mr. Kadam who is 35 years old and has a taxable income of ₹13,35,000. ii. Mr. Khan is 65 years of age and his taxable in

Accepted Answer

i. Mr. Kadam is 35 years old and his taxable income is ₹13,35,000. Mr. Kadam’s income is more than ₹ 10,00,000. ∴ Income tax = ₹1,12,500 + 30% of (taxable income -10,00,000) = ₹ 1,12,500 + 30% of (13,35,000 – 10,00,000) = 112500+ x 335000 100 = 112500+ 100500 = ₹ 213000 Education cess = 2% of income

Question 8

Question 2: Mr. Shekhar spends 60% of his income. From the balance he donates ₹ 300 to an orphanage. He is then left with ₹ 3,200. What is his income ?

Accepted Answer

Let the income of Shekhar be ₹ x. Shekhar spends 60% of his income. ∴ Shekhar’s expenditure = 60% of x ∴ Amount remaining with Shekhar = (100 – 60)% of x = 40% of x = × x = 0.4x From the balance left, he donates ₹ 300 to an orphanage. ∴ Amount left with Shekhar = 0.4x – 300 Now, the amount left with

Chapter 6 Financial Planning Problem Set 6 Solutions