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Caselet B 5 Marks Ali wants to construct his house after 10 years and the estimated fund required for the same is Omr. 125000. He
Caselet B 5 Marks
Ali wants to construct his house after 10 years and the estimated fund required for the same is Omr. 125000. He needs to choose a better option for making investment today, help him to decide which the better option is by calculating time value of money for the following:
- Investment in a Mutual Fund which pays 10.5% interest for 5 years
- A Bank deposit which pays 10.5% interest for 5 years but discounting is done monthly.
- Which of the two options should he accept? Why
- Assume yourself in place of Ali and share which investment would you prefer from the available investment opportunities in Oman? (A real example from Oman)
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