Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Transcribed Image Text:Mr B aged 63 years, has earned
rupees 75,00,000 out of his
business . His ex- wife gifted him a
car worth rupees 6 lakh. He spent a
total of rupees 15 lakh during a family
trip. He won a lottery of 19 lakh
rupees. Out of happiness he gifted
his wife a diamond set of rupees
450000. He bought a life insurance
policy and paid a premium of 50000
annually. He paid tuition fee for
his daughter for rupees 50000. He
invested rupees 80000 in PPF. One
of his existing life insurance policy
got matured and he received a total
of rupees 32 lakh. Seeing his health
conditions the doctor adviced him a
medical test of rupees 6000 following
he bought a health insurance for
rupees 27000. Calculate his taxable
income and tax liability.
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