Retail All Case Study PDF

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RETAIL MODULE: - E
CHAPTER 21 MORTGAGE ADVICE
CAPITAL GAIN BASED CASE STUDY:-1

What is Called Capital gain ?
When we Transfer a property or sell a property then the profit
we get is called Capital gain.
 On purchase we call it acquisition & on sale we call it

transfer.
Example :-1 Ajay Purchase a house for Rs. 20 lakh and after
10 years sell it for Rs.50 Lakh then his capital gain will be 30
Lakh.
Example:-2 Vijay purchase 1000 shares for Rs.10 each in
2021 and sell these shares at Rs. 50 each in 2012 then his
capital gain will be 50,000 -10,000 = 40,000
What is Called Capital Asset ?
Capital Asset means an asset or property which can be
movable or Immovable, tangible or intangible.
Example :-
1- Land sale and purchase
2- Preference share
3- Gov. Securities
4- Mutual funds
5- Zero coupon bond
What is not counted in Capital Asset ?
1- Stock in trade (not purchase yet)
2- Consumable Stores
3- Raw material
4- Agriculture land (situated outside municipal or notified
area)
5- if land is transferred from father to son, then we do not
consider it for capital gain
6-Personal effects like Jewelry, costly stones, and ornaments
made of silver, gold, platinum or any other precious metal,
archeological collections, drawings, paintings, sculptures or
any work of art.
Types of Capital Asset :- (Two Types)
1- Short Term Capital Asset:-
Capital asset held for not more than 36 months immediately
prior to the date of transfer (sale ) shall be deemed as short –
term capital assets :-
However, following assets held for not more than 12 months
shall be treated as short- term capital assets:
a) Equity or preferences shares in a company which are listed
in any recognized stock exchange in India .
b) Other listed securities
c) Units of UTI (Mutual Fund)
d) Units of equity-Oriented funds
e) Zero Coupon Bonds
Note :- Unlisted Shares and immovable property (being land
or buildings or both) held for not more than 24 months
immediately prior to the date of transfer (sale) shall be
treated as short – term asset.
2- Long Term Capital Asset :-
Capital Asset That held for more than 36 months or 24 months
or 12 months, as the case may be, immediately preceding the
date of transfer(sale) is treated as Long-Term Capital Asset.
Note :- Shares are Sold in FIFO Manner:-
Example:-
Ram buy 1000 share of Jio in 2012
Again buy 2000 shares of Jio in 2014
Now if he sells 4000 shares in 2020 then which shares will be
sold ?
1000 share of Jio in 2012 { First this will be sold 1000}
2000 share of Jio in 2014 {Second this 2000}
Again Buy 5000 Share of Jio in 2015 {then rest 1000 share
from these 5000 shares will be sold}
Cost inflation index (CII):-
This declared by Govt. each year
It inform about the inflation in that particular year.
Example :-
CII for 2017-18 is equal to 100
Ques:-1 If Ram Buy 1000 share on 24 April 2017 for Rs. 5 each
then which CII will be applicable and if he sells it on 6 May
2019 at Rs. 20 Each then which CII will be applicable. Also
calculate Index cost of acquisition in the year of sale .
Solution :-1
Given :-
Ram Buy 1000 share on 24 April 2017 for Rs. 5 each
CII of acquisition will be of 2017-18 (100)
{01-04-2017 to 31-03-2018}
Cost of acquisition = 5 × 1000 = 5000 Rs.
Given:-
He sells it on 6 May 2019 at Rs. 20 Each
CII of Transfer will be of 2019-20 (115)
{01-04-2019 to 31-03-2020}
Cost of Sale = 20 × 1000 = 20,000 Rs.
Index cost of acquisition in the year of sale =

𝟏𝟏𝟓
5000 × = Rs. 5227.27
𝟏𝟏𝟎
CASE STUDY
Mr. Mohan had inherited a property of market value of Rs. 50
lakh from his grandfather on 28 December 2009.
His grandfather purchased this property on 01 September
2001 for Rs 12 Lakh
Mr. Mohan sold this property for Rs 70 Lakh on 10 January
2017 , Compute The Capital Gain/ Loss ?
Cost Inflation index for
2001-2002 :- 426
2009 – 2010 :- 632
2016-2017 :- 1125
Solution :-
Acquisition price of property = 12,00,000 {01 sep 2001}
Market value of inherited property = 50,00,000 {28 Dec 2009}
Sales consideration = 70,00,000 (Jan 2017)
CII – 426 (2001-02)
CII- 632 (2009-10)
CII- 1125 (2016-17)
𝟏𝟏𝟐𝟓
= 31,69,014
𝟒𝟐𝟔
Capital gain = 70,00,000 – 31,69,014 = 38,30,986

RETAIL MODULE: - E
CHAPTER 21 MORTGAGE ADVICE
CAPITAL GAIN BASED CASE STUDY:-2

Case Study:-
Mr. Suresh has done the following transactions in share market:-
Type No. of Share Price Date

Purchase 1000 10 01-01-2010
Purchase 3000 30 01-06-2010
Purchase 2000 20 01-08-2010
Sale 5000 60 01-12-2012
 Cast inflation index (CII)

Ques :-1 When customer sell 5000 on 01-12-2012, is it a long –term

capital gain or short- term gain ?
Solution: - Since the shares are sold after 1 year so this is long- term
capital gain.
Ques :-2 In case of selling of share which rule is followed ?
Solution: - Since in case of selling of share FIFO rule is followed
FIFO: - First in First out

Ques :- 3 Calculate the total capital gains on sale of 5000 shares ?
Solution:-
Shares will be sold in FIFO manner.
Type No. of Share Price Sale

Case 1 1st sell this 1000 10 1000
Case 2 2nd sell this 3000 30 3000
Case 3 3rd sell this 2000 20 1000
Total = 5000
Now we will calculate the capital gain in each case:-
Case: - 1
Purchased Price of each Total Sold Price of Sale price
Share Share Purchase Share each share
Price
1000 10 10000 1000 60 60000
Type No. of Price Date CII Year CII

Share
Purchase 1000 10 01-01-2010 2009-10 100
Sale 1000 60 01-12-2012 2012-13 150
𝟏𝟓𝟎
Indexed purchase price = 10000 × = 𝟏𝟓𝟎𝟎𝟎
𝟏𝟎𝟎
Capital gain = Sale Price – Indexed purchase price
= 60000 - 15000 = 45000 Rs.

Case: - 2
Purchased Price of Total Sold Price of Sale price
Share each Purchase Share each share
Share Price
3000 30 90,000 3000 60 1,80,000

Share
Purchase 3000 30 01-06-2010 2010-11 120
Sale 3000 60 01-12-2012 2012-13 150
𝟏𝟓𝟎
Indexed purchase price = 90000 × = 𝟏, 𝟏𝟐, 𝟓𝟎𝟎
𝟏𝟐𝟎
= 1,80,000 – 1,12,500 = 67,500 Rs.
Case: - 3
Purchased Price of each Total Sold Price of Sale price
Share Share Purchase Share each share
Price
1000 20 20,000 1000 60 60,000

Share
Purchase 1000 10 01-08-2010 2010-11 120
Sale 1000 60 01-12-2012 2012-13 150
𝟏𝟓𝟎
Indexed purchase price = 20,000 × =25,000
𝟏𝟐𝟎
= 60,000 – 25,000 = 35,000 Rs.

Total Capital Gain: - Case 1 + Case 2 + Case 3
= 45000 + 67500 + 35000 = Rs. 1, 47,500
Ques :- 4 How Much tax Suresh need to pay for the sale of 5000
shares?
Solution:-
Tax liability for capital gain = 20 % of capital gain

𝟏,𝟒𝟕,𝟓𝟎𝟎 ×𝟐𝟎
So 20 % of Rs. 1,47,500 = = Rs. 29,500
𝟏𝟎𝟎
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RETAIL BANKING
RECALLED QUESTIONS
What we will study?
*Recalled Numerical of Retail Banking.
Ques.1: If a person invests ₹ 1 Lac for 9 years at 8% Per
Annum and
Interest will be applicable as under:
First 4 years quarterly compounding.
Next 3 years half yearly compounding.
Remaining 2 years yearly compounding.
At the end of 9 years how much amount he will get?
Solution 1:
FV = PV * (𝟏 + 𝒓)𝒏
FV = PV * (1+r1) * (1+r2) * (1+r3)
FV = PV * (1+r1)n1 * (1+r2)n2 * (1+r3)n3
PV = 1,00,000 ₹
First 4 years quarterly compounding:
𝟖 𝟐
r1 = 8% = 𝟒 = 2 % = 𝟏𝟎𝟎 = 0.02
n1 = 4 years = 4*4 = 16
Next 3 years half yearly compounding:
𝟖 𝟒
r2 = 8% = 𝟐 = 4 % = 𝟏𝟎𝟎 = 0.04
n2 = 3 years = 3*2 = 6
Remaining 2 years yearly compounding:
𝟖
r2 = 8% = 𝟏𝟎𝟎 = 0.08
n2 = 2 years = 2
FV = PV * (1+r1)n1 * (1+r2)n2 * (1+r3)n3
FV = 1,00,000 * (1+0.02)16 * (1+0.04)6 * (1+0.08)2
FV = 1,00,000 * (1.02)16 * (1.04)6 * (1.08)2
FV = 1,00,000 * 1.3727 * 1.2653 * 1.1664
FV = 2,02,589.37 = 2,02,590 ₹
Ques.2: Mr. A is about to receive Rs. 40,000 per year for 5
years. Calculate the present value of annuity assuming that he
can earn interest on his investment at 10% PA?
Solution 2:
Present Value of Ordinary Annuity:
𝑨 (𝟏+𝒓)𝒏 −𝟏
PV = [ ]
𝒓 (𝟏+𝒓)𝒏
A = 40,000
𝟏𝟎
r = 10% = = 0.10
𝟏𝟎𝟎
n=5
𝑨 (𝟏+𝒓)𝒏 −𝟏
PV = [ ]
𝒓 (𝟏+𝒓)𝒏
𝟒𝟎𝟎𝟎𝟎 (𝟏+𝟎.𝟏𝟎)𝟓 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏+𝟎.𝟏𝟎)𝟓
𝟒𝟎𝟎𝟎𝟎 (𝟏.𝟏𝟎)𝟓 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏.𝟏𝟎)𝟓
𝟒𝟎𝟎𝟎𝟎 (𝟏.𝟏𝟎)𝟓 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏.𝟏𝟎)𝟓
𝟒𝟎𝟎𝟎𝟎 𝟏.𝟔𝟏𝟎𝟓−𝟏
PV = [ ]
𝟎.𝟏𝟎 𝟏.𝟔𝟏𝟎𝟓
𝟒𝟎𝟎𝟎𝟎 𝟎.𝟔𝟏𝟎𝟓
PV = [ ]
𝟎.𝟏𝟎 𝟏.𝟔𝟏𝟎𝟓
PV = 1,51,629.92 = 1,51,630 ₹
Ques.3: Mr. Ram had purchased a flat in financial year 2004 -

2005 for rupees 25 Lakh. And he sold it in 2018-19 in financial
year for rupees 50 Lakh.
What is his indexed cost of acquisition for flat?
Cost Inflation index

2004- 2005(113)
2018-2019(280)
Solution 3:
Indexed cost of acquisition =

𝐂𝐨𝐬𝐭 𝐨𝐟 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 ∗ 𝐂𝐨𝐬𝐭 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐝𝐞𝐱 𝐨𝐟 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫 𝐨𝐟 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫
𝐂𝐨𝐬𝐭 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐝𝐞𝐱 𝐨𝐟 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫 𝐨𝐟 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧
𝟐𝟓 ∗𝟐𝟖𝟎
Indexed cost of acquisition = = 61.95 Lac ₹
𝟏𝟏𝟑
Ques.4: Mr. Z deposit Rs. 20000 with a bank at 12% PA, in

how many years it will become Rs. 40000?
A: 6 years
B: 12 years
C: 18 years
D: 20 years
Solution 4:
We need to apply rule of 72.
𝟕𝟐
Time = 𝒓
𝟕𝟐
Time = 𝟏𝟐 = 6 years
So, it will take 6 years for ₹ 20,000 to become ₹ 40,000.

Ques.5: A customer deposit under FD scheme Rs. 50,000 in
your bank @6% PA for 2 years.
He desires to avail interest on quarterly basis to credit to his

saving account with your bank. Bank agree to his request and
credit interest amount every quarter in his account.
How much amount will be payable on maturity date of FD?
A- 60,000
B- 50,750
C- 56,000
D- None
Solution 5:
Since the interest is credited in each quarter so on maturity

only last quarter interest and principal amount will be
pending.
𝟔
r = 6% = 𝟒 = 1.5%
Interest paid by bank in each quarter = 50000 * 1.5 % = 750 ₹
Total payment to be paid to customer on maturity date =
50,000 + 750 = 50,750 ₹

Ques.6: A company purchased a machine on 24-12-2018 for
Rs. 5,00,00 and installed it on 31-03-2019 and paid installation
charge of Rs. 5,75,000.
If useful life of machine is Rs. 10 years and after which salvage

value is will be Rs. 50,000.
Put to use date is 01-04-2019.
If company follow Straight Line Method of depreciation, the

amount of depreciation to be changed for FY 2020-21 will be?
Solution 6:
Cost of Machine = 5,00,000 + 5,75,000 = 10,75,000
Salvage Value = 50,000
Life of machine (n) = 10
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐚𝐬𝐬𝐞𝐭 − 𝐒𝐚𝐥𝐯𝐚𝐠𝐞 𝐕𝐚𝐥𝐮𝐞

Annual Depreciation =
𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐲𝐞𝐚𝐫 (𝐧)
𝟏𝟎,𝟕𝟓,𝟎𝟎𝟎 − 𝟓𝟎,𝟎𝟎𝟎 𝟏𝟎𝟐𝟓𝟎𝟎𝟎

Annual Depreciation = = = 1,02,500
𝟏𝟎 𝟏𝟎
Ques.7: You have sectioned a loan of ₹ 10,000 to Mr. AK at
10% PA payable in 12 years. Calculate the EMI?
A: 8333
B: 8792
C: 9167
D: 8972
Solution 7:
(𝟏+𝒓)𝒏
EMI = P * r * [ ]
(𝟏+𝒓)𝒏 −𝟏
P = 10000
𝟏𝟎 𝟎.𝟏𝟎
r = 10% = = 0.10 = = 0.00833
𝟏𝟎𝟎 𝟏𝟐
n = 12*12 = 144
(𝟏+𝒓)𝒏
EMI = P * r * [ ]
(𝟏+𝒓)𝒏 −𝟏
(𝟏+𝟎.𝟎𝟎𝟖𝟑𝟑)𝟏𝟒𝟒
EMI = 10000 * 0.00833 * [ ]
(𝟏+𝟎.𝟎𝟎𝟖𝟑𝟑)𝟏𝟒𝟒 −𝟏
(𝟏.𝟎𝟎𝟖𝟑𝟑)𝟏𝟒𝟒
EMI = 10000 * 0.00833 * [ ]
(𝟏.𝟎𝟎𝟖𝟑𝟑)𝟏𝟒𝟒 −𝟏
𝟑.𝟑𝟎𝟐𝟏
EMI = 10000 * 0.00833 * [ ]
𝟑.𝟑𝟎𝟐𝟏−𝟏
𝟑.𝟑𝟎𝟐𝟏
EMI = 10000 * 0.00833 * [ ]
𝟐.𝟑𝟎𝟐𝟏
𝟑.𝟑𝟎𝟐𝟏
EMI = 10000 * 0.00833 * [ ] = 119.48 = 120 ₹
𝟐.𝟑𝟎𝟐𝟏
RETAIL BANKING
CASE STUDY
What we will study?
*Case Study based on EMI Breakup calculation.
*Case Study Asked in June 2022 exam.
CASE STUDY
Mr. Raju take a loan of Rs. 25,00,000/- at rate of 11% PA for
tenure of 20 yrs.
Ques 1: Calculate the EMI for this loan?
a. 25200 b. 25000 c. 25875 d. 28965
Ques 2: How much amount will be paid toward interest in 1st

month out of EMI?
a. 23000 b. 26505 c. 35200 d. 17000
Ques 3. How much amount will be paid toward principal in 1st

month out of EMI?
a. 3458 b.5247 c. 4122 d.2875
Ques 4. How much loan amount will be outstanding at end of

the first month?
a. 22,54,600 b.24,74,125 c.25,00,645 d.14,05,684
Ques 5: How much amount will be paid toward interest in 2nd

month out of EMI?
a. 22917 b. 22974 c. 25640 d. 18756

Ques 6. How much amount will be paid toward principal in
2nd month out of EMI?
a. 4560 b.2901 c. 5640 d.3458
Ques 7. How much loan amount will be outstanding at end of

the 2nd month?
a. 22,54,600 b.24,97,112 c.25,45,645 d.24,94,224
Solutions:
*n is always taken in months.

*r is also taken in monthly basis in EMI calculation.
Solution 1: Calculate the EMI:
P= 25,00,000
n = 20 years = 20*12 = 240 months

n= 240
r= 11/100 = .11/ 12 = .11/12 = 0.0092

r=0.0092
EMI = P ×r× [(1+r)n] / [(1+r)n-1]

EMI =25,00,000 × 0.0092 × [(1+0.0092)240] / [(1+0.0092)240-1]
EMI =25,00,000 × 0.0092 × [9.006] / [8.006]
EMI =25,00,000 × 0.0092 × 1.1249
EMI =25,00,000 × 0.01035 = 25,875
EMI = 25,875
Solution 2: Interest paid in 1st month:
You deposit 25 Lac in bank and bank offer you 11% PA then
how much interest you will earn in a month?
P= 25,00,000
r=0.0092 [11/100= 0.11, 0.11/12 = 0.0092]
t=1 month
Interest = P*r*t
Interest = 25,00,000*0.0092*1 = 23000
Interest paid in 1st month = 23000

EMI = 25,875
Amount paid as principal = 25875-23000 = 2875
Solution 3: Principal paid in 1st month:
Solution 4:
Loan amount will be outstanding at end of the first month =

25,00,000 - 2875 =24,97,125
This amount will be principal for 2nd month.
Solution 5: Interest paid in 2nd month:
You deposit 24,97,125 in bank and bank offer you 11% PA

then how much interest you will earn in a month?
P= 24,97,125
r=0.0092 [11/100= 0.11, 0.11/12 = 0.0092]
t=1 month
Interest = P*r*t
Interest = 24,97,125*0.0092*1 = 22,974
Interest paid in 2nd month = 22974
EMI = 25,875
Solution 6: Principal paid in 2nd month:
Solution 7:
Loan amount will be outstanding at end of the first month =

24,97,125 -2901 =24,94,224
This amount will be principal for 3rd month.

RETAIL BANKING
CASE STUDY
What we will study?
*Case Study based on Time Value of Money.
*Case Study Asked in June 2021 exam.
CASE STUDY
The time value of money (TVM) is the concept that a sum of

money is worth more now than the same sum will be at a
future date due to its earnings potential in the interim.
Now answer the following questions:
Ques.1: ABC Ltd. has 5000 employee and the company expect
a compound growth of 5% per year on its strength. What will
be the strength of company in next 10 years?
A: 7757
B: 7386
C: 8145
D: None
Ques. 2: A finance company offers to pay a sum of ₹ 32000 at

the end of 6 years to investors who deposit certain amount at
the end of each year for 6 years. If rate of interest is 6% PA
then can you calculate the certain amount that is deposited
each year?
A: 4588
B: 4288
C: 4356
D: 4875
Ques. 3: Mr. X promises Mr. Y that he would give him 1 Lac
after 3 years. What is present value of this amount? Given
that r = 10% PA.
A: 75131
B: 70000
C: 82645
D: None of the Above
Ques. 4: Apply the rule of 72. If money get double in 10 years

and 6 months. What is rate of interest per annum
compounded annually?
A: 5.64%
B: 6.14%
C: 6.86%
Ques. 5: Mr. AB, the father of Mr. M has assured to provide ₹

5 Lac each year for 6 years up on retirement one year from
now. The first payment was made on date of retirement.
Assuming present interest rate is 10% PA. What is present
value of amount promised?
A: 21,77,840
B: 22,25,861
C: 22,54,070
Ques.1: ABC Ltd. has 5000 employee and the company expect
a compound growth of 5% per year on its strength. What will
be the strength of company in next 10 years?
Solution 1:
We need to calculate Future Value.
FV = PV * (𝟏 + 𝒓)𝒏
PV = 5000
𝟓
r = 5% = 𝟏𝟎𝟎 = 0.05
n = 10
FV = PV * (𝟏 + 𝒓)𝒏
FV = 5000 * (𝟏 + 𝟎. 𝟎𝟓)𝟏𝟎
FV = 5000 * (𝟏. 𝟎𝟓)𝟏𝟎
FV = 5000 * 1.6289 = 8144.50
FV = 8145 employee
Ques. 2: A finance company offers to pay a sum of ₹ 32000 at
the end of 6 years to investors who deposit certain amount at
the end of each year for 6 years. If rate of interest is 6% PA
then can you calculate the certain amount that is deposited
each year?
Solution 2:
A=?
FV = 32000
𝟔
r = 6% = 𝟏𝟎𝟎 = 0.06
𝑨
FV = [(𝟏 + 𝒓)𝒏 − 𝟏]
𝒓
𝑨
32000 = 𝟎.𝟎𝟔 [(𝟏 + 𝟎. 𝟎𝟔)𝟔 − 𝟏]
𝑨
32000 = 𝟎.𝟎𝟔 [(𝟏. 𝟎𝟔)𝟔 − 𝟏]
𝑨
32000 = 𝟎.𝟎𝟔 [𝟏. 𝟒𝟏𝟖𝟓 − 𝟏]
𝑨
32000 = 𝟎.𝟎𝟔 [𝟎. 𝟒𝟏𝟖𝟓]
𝟑𝟐𝟎𝟎𝟎 ∗𝟎.𝟎𝟔
A= 𝟎.𝟒𝟏𝟖𝟓
= 4,587.81 = 4588 ₹
Ques. 3: Mr. X promises Mr. Y that he would give him 1 Lac
after 3 years. What is present value of this amount? Given
that r = 10% PA.
Solution 3:
FV = PV * (𝟏 + 𝒓)𝒏
FV = 1,00,000
𝟏𝟎
r = 10% = 𝟏𝟎𝟎 = 0.10
n=3
FV = PV * (𝟏 + 𝒓)𝒏
1,00,000 = PV * (𝟏 + 𝟎. 𝟏𝟎)𝟑
1,00,000 = PV * (𝟏. 𝟏𝟎)𝟑
1,00,000 = PV * 1.331
𝟏𝟎𝟎𝟎𝟎𝟎
PV = = 75,131.48
𝟏.𝟑𝟑𝟏
PV = 75,131 ₹
Ques. 4: Apply the rule of 72. If money get double in 10 years
and 6 months. What is rate of interest per annum
compounded annually?
Solution 4:
𝟕𝟐
Time = 𝒓
𝟕𝟐
10.5 = 𝒓
𝟕𝟐
r = 𝟏𝟎.𝟓 = 6.857
r = 6.86 %
Ques. 5: Mr. AB, the father of Mr. M has assured to provide ₹

5 Lac each year for 6 years up on retirement one year from
now. The first payment was made on date of retirement.
Assuming present interest rate is 10% PA. What is present
value of amount promised?
Solution 5:
𝑨 (𝟏+𝒓)𝒏 −𝟏
PV = [ ]
𝒓 (𝟏+𝒓)𝒏
A = 5,00,000
𝟏𝟎
r = 10% = 𝟏𝟎𝟎 = 0.10
n = 6 years
𝑨 (𝟏+𝒓)𝒏 −𝟏
PV = [ ]
𝒓 (𝟏+𝒓)𝒏
𝟓𝟎𝟎𝟎𝟎𝟎 (𝟏+𝟎.𝟏𝟎)𝟔 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏+𝟎.𝟏𝟎)𝟔
𝟓𝟎𝟎𝟎𝟎𝟎 (𝟏.𝟏𝟎)𝟔 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏.𝟏𝟎)𝟔
𝟓𝟎𝟎𝟎𝟎𝟎 (𝟏.𝟏𝟎)𝟔 −𝟏
PV = [ ]
𝟎.𝟏𝟎 (𝟏.𝟏𝟎)𝟔
𝟓𝟎𝟎𝟎𝟎𝟎 𝟏.𝟕𝟕𝟏𝟔−𝟏
PV = [ ]
𝟎.𝟏𝟎 𝟏.𝟕𝟕𝟏𝟔
𝟓𝟎𝟎𝟎𝟎𝟎 𝟎.𝟕𝟕𝟏𝟔
PV = 𝟎.𝟏𝟎
[ 𝟏.𝟕𝟕𝟏𝟔
]
PV = 21,77,692.48
PV = 21,77,700 ₹
RETAIL BANKING
CASE STUDY
What we will study?
*Case Study based on Vehicle Loan.
*Case Study Asked in Dec 2020 & June 2022 exam.
CASE STUDY
As per policy of bank vehicle loan is granted for purchase of

new/old cars against the prime security of vehicle, for a
maximum amount of 90% of on road price, rounded off to
nearest thousand.
On road price includes registration charge, road tax and

insurance premium.
While accessing the loan amount, the bank ensure that

borrower's take home does not fall below 50% of their gross
salary in respect of salaried person.
Your branch received application with following details from a

school teacher:
Gross monthly salary= 62,000/-
The existing deductions:

LIC premium= 3000/-
PF installment= 4100/-
PF Recovery= 4500/-
Ex showroom price of car = 6,32,000/-

Vehicle insurance premium= 7320/-
Road tax for 15 years= 21,600/-
Registration fee= 1900/-
Ques.1: Maximum amount of loan based on on-road price
alone, that can be considered if the condition on take home
pay is ignored?
A: 5,76,018
B: 5,95,000
C: 5,97,000
D: 6,15,000
Ques. 2: Maximum EMI amount that is available for

repayment of loan if condition on take home pay condition is
applied?
A: 11600
B: 25200
C: 31000
D: 19400
Ques. 3: The security interest will be created on vehicle by

way of --------?
A: Assistant
B: Pledge
C: Hypothecation
D: Marking lien on RC book
Ques. 4: Creation of charge is to be registered with?
A: CERSAI only
B: RTO only
C: Sub Registrar office only
D: A & B both
Ques. 5: What should be repayment period in months

(rounded off to lower number) in case bank consider loan
quantum based on on-road price alone (ignore the take home
condition) but consider the maximum EMI eligible amount
based on take home pay as per policy?
A: 30 EMI
B: 31 EMI
C: 20 EMI
D: Can't be determine
Solutions:
Ques.1: Maximum amount of loan based on on-road price

alone, that can be considered if the condition on take home
pay is ignored?
Solution 1:
Car On Road Price:

Ex- showroom price = 6, 32,000/-
Vehicle insurance premium = 7,320/-
Road tax for 15 years = 21,600/-
Registration fee = 1900/-
Maximum amount of loan if take home condition is ignored
On road price = 6,32,000 + 7,320 + 21,600 + 1,900
Max loan amount = 90% of on road price

So, 90% of 6,62,820 = 5,96,538
(We need to round off nearest thousand)
Correct answer is = 5,97,000

repayment of loan if condition on take home pay is applied?
Solution 2:
Gross Salary = 62,000/-

Take home = 62,000*50% = 31,000/-
Remaining = 31,000/-
But deduction will also be done

LIC = 3000/-
PF install = 4500/-
PF receives = 4100/-
Total deductions= LIC + PF install + PF receives
= 3000+4500+4100 =11,600
So, amount available for repayment of EMI= 31,000 – 11,600

= 19,400/-
Ques. 3: The security interest will be created on vehicle by

way of --------?
Solution 3: Hypothecation
Ques. 4: Creation of charge is to be registered with?
Solution 4: RTO only

Ques. 5: What should be repayment period in months
(rounded off to lower number) in case bank consider loan
quantum based on on-road price alone (ignore the take home
condition) but consider the maximum EMI eligible amount
based on take home pay as per policy?
A: 30 EMI
B: 31 EMI
C: 20 EMI
D: Can't be determine

repayment of loan if condition on take home pay is ignored?
Solution 6: Max EMI, if take home condition is ignored
If take home condition is ignored then he can pay full gross

salary but after making the deductions for LIC,PF etc.
So,
= 62000 – 11600
= 50400
repayment of loan if condition on take home pay is applied
but deductions are ignored?
Solution 7: Max EMI if take home condition is applied but

deductions are ignore?
62000*50% = 31000/-
So, out of 62000 he will pay 31000 and rest 31000 he can pay
as EMI.
RETAIL MODULE :- E
CHAPTER 22 VALUATION OF REAL PROPERTY (PART-III)
CASE STUDY ON DEPRECIATION
Questions:1 A temporary Structure has been constructed at a

cost of Rs. 1,20,000. Assuming its Salvage Value as Rs. 30,000
at the end of 6 years, determine the amount of depreciation
for each year by
1- Straight Line Method (SLM)
2- WDV Method
Solutions :-
(SLM):-
C= 1,20,000
S= 30,000
Total depreciation (in 6 years)= C – S
= 120000-30000
= 90000
𝟗𝟎𝟎𝟎𝟎
depreciation (Each Year) =
𝟔
WDV Method:-
If Salvage value is Zero
𝒏
If Salvage Value is not Zero

𝒏 𝑺
𝑪
p= % of depreciation
n= Life of Asset
S= Salvage value of Asset
C= Cost of Asset
𝒏
Formula -1
𝒏
𝑺 𝒏 𝒏 𝑺
⇒
𝑪 𝑪
𝒏 𝑺
𝑪
C= 1,20,000
S= 30,000
n= 6
rate of depreciation
𝟏
𝒏 𝒏
𝟔 𝟔
1st Year :-
C= 1,20,000
p= 20.64 %
𝒏
𝟏
2nd Method :-
C= 1,20,000
p= 20.64 %
1st Year:-
Depreciation = 1,20,000 of 20.64 %
=
WDV= 1,20,000 – 24770
= 95230
2nd Year:-
Depreciation = 95230 of 20.64 %
= 19650 /-
WDV= 95230 – 19650 = 75580/-
3rd Year :-
= 15600/-
WDV= 75580-15600= 59980 /-
4th Year :-
= 12380 /-
WDV= 59980-12380 = 47600/-
5th Year :-
Try your Self
6th Year
Try Your Self
Join CAIIB WITH ASHOK ON YOUTUBE & APP
RETAIL MODULE :- B
CHAPTER :-8 DEBIT AND CREDIT CARDS
(CREDIT CARD BASED CASE STUDY)
Case Study :-
Mr. Ram have credit card of SBI bank and credit limit is Rs
10 Lac. billing date is 10th of every month and maximum
interest free period is 30 days and rate of is 5% per month.
Now , Answer of the following Questions :-
Ques 1: Mr. Ram purchased product online of Rs. 2000

by Using credit Card on dated 10 September 2021.
What are minimum payment Mr. Ram have to Pay on or

before due date to avoid penalty.
A- Rs.100 (5 % OF 2000)
B- Rs.60 (3 % OF 2000)
C- Rs.250
D-Rs.500
Ques 2: If billed amount is Rs. 200, what will be

minimum payment Mr. Ram need to pay on or before
due date to avoid penalty?
a. Rs. 200 /-
b. 5% of Rs. 200/-
c. Rs. 250/-
d. None
Ques 3: Calculate annual% Rate?
a. 36%
b. 42%
c. 60%
d. 24%
Solution:- Annual % Rate = Monthly rate × 12 = 5% × 12 = 60%
Ques 4: Calculate the effective annual Rate?
a. 79.59 %
b. 60.86 %
c. 71.65 %
d. 80.56 %
Effective rate of interest :-
Formula :-
𝐄𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐫𝐚𝐭𝐞 𝐨𝐟 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 = [(𝟏 + 𝐫)𝐧 − 𝟏] × 𝟏𝟎𝟎
r= 0.05
[(𝟏 + 𝟎. 𝟎𝟓)𝟏𝟐 − 𝟏] × 𝟏𝟎𝟎
[𝟏. 𝟕𝟗𝟓𝟗 − 𝟏] × 𝟏𝟎𝟎 = [𝟎. 𝟕𝟗𝟓𝟗] × 𝟏𝟎𝟎 = 𝟕𝟗. 𝟓𝟗 %

Ques:- 5 Mr. Ram Purchased online of Rs. 4 Lac by using credit card on dated
6th January 2021, after 35 days he paid entire outstanding amount with
interest.
How much interest was paid by Mr.Ram ?
a- Rs. 23016.00
b- Rs. 72000.60
c- Rs. 20385.60
d- Rs. 88208.20
Solutions :-
Purchase Date :- 06 January 2021
Billing Date :- 10 January 2021
Due Date:- 8 February 2021 (30 days From Billing Date)
Ram Paid on :- 9 February 2021
(35 Days From Purchase date 06-01-2021)
 Now Since he has missed the due date so need to pay

Full interest of 35 Days .
(Difference b/w Purchase date & paid date )
Per Month interest = 5 % = 0.05
Per Year interest = 5 % × 12 = 60 % = 0.60
𝟎.𝟔𝟎
Per day interest = = 𝟎. 𝟎𝟎𝟏𝟔𝟒𝟒
𝟑𝟔𝟓
Total interest paid = 4,00,000 × 0.001644 × 35= 23016

Ques:- 6 Mr.Ram purchased product online of Rs. 6 Lac by using credit card on
dated 15th March 2021, after 52 days he paid entire outstanding amount with
interest.
How much interest paid By Mr.X ?
a. Rs.20219.15
b. Rs.20219.15
c. Rs.12131.49
d. Zero
Solutions:-
Purchase Date :- 15-03-2021
Billed Date :- 10-04-2021
Due Date :- 09-5-2021 [10-04-2021 + 30 days]
Paid after days :- 52 days
Paid Date :- 05-05-2021 [15-03-2021 + 52 days]
Due date is 9 May While he paid on 5 May hence Zero interest will be Changed.

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CAPITAL GAIN BASED CASE STUDY:-1

 On purchase we call it acquisition & on sale we call it

Index cost of acquisition in the year of sale =

Capital gain = 70,00,000 – 31,69,014 = 38,30,986

CAPITAL GAIN BASED CASE STUDY:-2

Mr. Suresh has done the following transactions in share market:-

Type No. of Share Price Date

 Cast inflation index (CII)

CII for 2009-10 is equal to 100

Ques :-1 When customer sell 5000 on 01-12-2012, is it a long –term

Ques :-2 In case of selling of share which rule is followed ?

Solution: - Since in case of selling of share FIFO rule is followed

FIFO: - First in First out

Shares will be sold in FIFO manner.

Type No. of Share Price Sale

Now we will calculate the capital gain in each case:-

Type No. of Price Date CII Year CII

Capital gain = Sale Price – Indexed purchase price

= 60000 - 15000 = 45000 Rs.

Type No. of Price Date CII Year CII

Capital gain = Sale Price – Indexed purchase price

= 1,80,000 – 1,12,500 = 67,500 Rs.

Type No. of Price Date CII Year CII

Capital gain = Sale Price – Indexed purchase price

= 60,000 – 25,000 = 35,000 Rs.

= 45000 + 67500 + 35000 = Rs. 1, 47,500

Tax liability for capital gain = 20 % of capital gain

Interest will be applicable as under:

First 4 years quarterly compounding.

Next 3 years half yearly compounding.

Remaining 2 years yearly compounding.

At the end of 9 years how much amount he will get?

FV = PV * (1+r1) * (1+r2) * (1+r3)

FV = PV * (1+r1)n1 * (1+r2)n2 * (1+r3)n3

First 4 years quarterly compounding:

Remaining 2 years yearly compounding:

FV = PV * (1+r1)n1 * (1+r2)n2 * (1+r3)n3

FV = 1,00,000 * (1+0.02)16 * (1+0.04)6 * (1+0.08)2

FV = 1,00,000 * (1.02)16 * (1.04)6 * (1.08)2

FV = 1,00,000 * 1.3727 * 1.2653 * 1.1664

Present Value of Ordinary Annuity:

Ques.3: Mr. Ram had purchased a flat in financial year 2004 -

What is his indexed cost of acquisition for flat?

Cost Inflation index

Indexed cost of acquisition =

Ques.4: Mr. Z deposit Rs. 20000 with a bank at 12% PA, in

We need to apply rule of 72.

So, it will take 6 years for ₹ 20,000 to become ₹ 40,000.

He desires to avail interest on quarterly basis to credit to his

How much amount will be payable on maturity date of FD?

Since the interest is credited in each quarter so on maturity

Interest paid by bank in each quarter = 50000 * 1.5 % = 750 ₹

Total payment to be paid to customer on maturity date =

50,000 + 750 = 50,750 ₹

If useful life of machine is Rs. 10 years and after which salvage

Put to use date is 01-04-2019.

If company follow Straight Line Method of depreciation, the

Cost of Machine = 5,00,000 + 5,75,000 = 10,75,000

Salvage Value = 50,000

Life of machine (n) = 10

𝐂𝐨𝐬𝐭 𝐨𝐟 𝐚𝐬𝐬𝐞𝐭 − 𝐒𝐚𝐥𝐯𝐚𝐠𝐞 𝐕𝐚𝐥𝐮𝐞

𝟏𝟎,𝟕𝟓,𝟎𝟎𝟎 − 𝟓𝟎,𝟎𝟎𝟎 𝟏𝟎𝟐𝟓𝟎𝟎𝟎