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5. Mr Moosa Al Lawati is the owner of a business in Muscat. He is concern about the higher studies of his two sons. His

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5. Mr Moosa Al Lawati is the owner of a business in Muscat. He is concern about the higher studies of his two sons. His elder son in Studying in Mazoon college. After his Baccalaureate after four years he is planning to go for Master to U.K.His younger son in Studying in International American School. After his Baccalaureate after seven years he is planning to go for Master to U.S.A. Mr Moosa is too much worried about accumulating the funds required for his children education. He is has to arrange RO 10,000 for his elder sons Masters in U.K. and he also has to arrange RO 15,000 for his youngers sons Masters in U.SA. He has got two proposals The details of the proposal are given below Proposal A investment to accumulate RO 10,000 for Elder son Mr Moosa plans to investment RO 2,000 per year from now in shares of Blue chip company in Oman. The rate of Dividend offered by such companies is around 20%. The dividend will be accumulated and received when the investment is sold. What will be value of his investment at the required time. Proposal B investment to accumulate RO 15,000 for younger son This offer is from Islamic Bank. The annual payment starting from now is RO 2,000. The rate of return on the investment will be around 8% per annum. The whole amount will be returned at the required times. You are required to calculate for the above two proposal a) The total amount to be received And income earned in Proposal A b) The total amount to be received And income earned in Proposal B (5+5=10 marks) Formatting guidelines: Headings font: Type = Calibri = 14, Bold Others font: Type = Calibri; Size = 12 Column width: 18 Wrap text for headings Merge and center cells: Main Heading, All the cells for amounts = category=Number; Decimal places=0 and Use 1,000 separator, Shade the cells in the Heading row = Light Yellow Using the formula for calculation

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