Mr. Salah is owner of Al Jaleel Exchange Center and decided to apply for loan in banks. They need RO150,000 and they want the following terms : loan period of 7 years, and rate is 4% payable in equal monthly installment. They have an expansion project and the funds they will borrow will be utilized for that plan. The banks will be checking their financial status, so he asked his accountant to prepare the financial statement.

Additional information that are available from the project report are as follows;

- At present, the companys balance sheet is showing a total asset valued OMR 500,000. The total liability of the supermarket is OMR 400,000 and the ownership fund (capital invested) is OMR 100,000.

- The income statement of the past 2 years are showing increase in net income after tax of 75,000 in 2018 with 20% increase in 2019.

- National Bank of Oman offers interest rate on loan at present is 4.5% on term loans and maximum repayment period allowed for such loans is 5 years and the maximum loan they can provide is 84,000 OMR.

- Bank Muscat offers 5.5% with maximum loanable amount of 200,000 OMR payable in 7 years.

- The company has an option to issue a commercial paper amounting 150,000 OMR with a par value of 157,000 OMR for 240 days.

How much is the interest if the company will choose National Bank?

If the companys terms and condition on the loan will be followed how much would be the monthly installment due for them?