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(A) You are offered an annuity that will pay OMR 700 per month for 10 years; the first payment will be made to day. If

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(A) You are offered an annuity that will pay OMR 700 per month for 10 years; the first payment will be made to day. If you feel that the appropriate interest rate is 4% per month, what is the annuity worth to you today, if interest is compounded monthly? (2 Marks) (B) At what quoted annual interest rate must OMR 50,000 be invested so that it will grow to be OMR 400,000 in 8 years if interest is compounded weekly? (2 Marks)

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