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8. (2 points) In 1889, Vincent Van Gogh's painting, Sunflowers, sold for OMR 200. One hundred years later it sold for OMR 30 million. Had

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8. (2 points) In 1889, Vincent Van Gogh's painting, "Sunflowers", sold for OMR 200. One hundred years later it sold for OMR 30 million. Had the painting been purchased by your great-grandfather and passed on to you, how much total interest was earned from this investment? How much of this was interest on interest? (2 points) An insurance company promises to pay Hana OMR 2.25 million on her 50th birthday in return for a one-time payment of OMR 520,000 today. (Hana just turned 30.) At what rate of interest would Hana be indifferent between accepting the company's offer and investing the premium on her own? 10. (2 points) An account was opened with an investment of OMR 1,000 five years ago. The ending balance in the account is OMR 1,750. If interest was compounded daily, what rate was earned on the account? 11. (2 points) You work for a furniture store. You normally sell a living room set for OMR 2,500 and finance the full purchase price for 12 monthly payments at 24% APR compounded monthly. You are planning to run a zero-interest financing sale during which you will finance the set over 12 months at 0% interest. How much do you need to charge for the bedroom set during the sale in order to earn your usual combined return on the sale and the financing? 12. (2.5 points) You are planning to borrow OMR 4,500. You can repay the loan in 40 monthly payments of OMR 132.75 each or 36 monthly payments of OMR 145.20 cach, You decide to take the 40-month loan. During each of the first 36 months you make the loan payment and place the difference between the two payments (OMR 12.45) into an investment account earning 10% APR. Beginning with the 37th payment you will withdraw money from the investment account to make your payments. How much money will remain in the investment account after your loan is repaid

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