1-Sara and Lama are working in the same company and having the same salary SAR 15,000. Lama...
Question:
1-Sara and Lama are working in the same company and having the same salary SAR 15,000. Lama has borrowed SAR 10,000 from AL Rajhi Bank one year ago and has to pay it back in a monthly basis.
A broker called Sara and told her that there is a great investment opportunity where Sara can invest her money and gain 3.4% monthly interest. Sara told her friend Lama about the investment opportunity and they've decided to invest the coming salary SAR 15,000 for 24 months. However, Lama needs the interest received from the investment to pay back her loan from the bank each month. But Sara will not withdraw any amount from her investment account until the 24 months end.
- How much is the total profit received by Sara, and the total profit for Lama? (2 points )
- Explain why there is a difference between the profits if so. (2 points )
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann