OMNIVEST Company is a recently established company in Muscat. The company has 150 employees working in different departments. The company is established as an SAOG company with available cash on hand of RO 450,000 allotted for some income generating activity or projects. The company has fixed asset (commercial building) which are highly valued since the location in the city area with estimated market value of 200 Million OMR. Aside from the available funds they will be needing additional 600,000 OMR for some of their projects.

The following information should be considered making decisions, where they would place their funds and where they would get their funds.

- In buying $ dollars the nominal rate for dollar is 4.85% while inflation rate is 3.35%

- In common stock the nominal rate is 6.5% and the inflation rate is 8.35%

- In corporate bonds the real interest is 4.5% while inflation rate 2.45%

- In borrowing funds in lending institutions the real rate is 4.75% while the inflation rate is 1.25%

Using estimation formula, how much is the real interest they would gain if they would put all their available cash on hand to buy dollars?

How much is the real interest rate using exact calculation formula if they would buy stocks?