Business math

(3+1+1-5 Marks) Q8: During COVID-19 Global lock down, there is short supply of cycles in the market in the month of April 2020. Al Maha Cycle store raises the price of a cycle by 5% above the list price and charges a VAT of 10 % on the increased price. A customer has to pay RO 2650 for the cycle (including VAT). a) Find out the list price of the cycle. b) Due to short supply of cycles cycle store increased the cycle price. Critically discuss (4+1=5 Marks) Q9: Ms. Lamya Al Himai, an professional engineer working with Petroleum and Development of Oman (PDO) is interested in buying the BMW car for her personal use. She goes to BMW car showroom and decided to buy BMW 4 Series Coupe 2020 435i model. The price of the car is 29500 OMR and she decided to pay down payment of 9500 OMR and she approaches Bank Muscat for the balance amount. Bank Muscat informed her that she needs to pay 400 OMR per month for 5 years as an installment against the loan. a) If she buys the car, what will be deferred payment price she needs to pay? b) If she takes a bank loan, how much interest she needs to pay? c) Do you suggest her to take a bank loan and buy the BMW car? Critically analyze (2+2+1-5 Marks) Q10: On 1 January 2019, National Biscuit Company purchased a building for their administration activities in Muscat from a real estate company at OMR 1,200,000. Buildings are depreciated using the straight-line depreciation method with a useful life of 40 years. Salvage value of the building at the end of useful life is estimated as OMR 120,000. a) What is the amount of depreciation expense for 2019 b) What is the book value of the building on December 31, 20207 .) Which depreciation method, WDV or Straight line method is more precise?. Critically analyze (2+2+1=5 Marks) HOTELSDEPTY220SEN CRISEERT 722