Q1/

A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income.

Select one:

a. 11300.50

b. 10000.46

c. 12000.40

d. 11372.36

------------------------------------------

Q2/

Abdul wants to deposit OMR 1500 in a bank and he wants to know in how many years this amount will double; if he deposits with: Option a: Bank Muscat at 8% interest rate Option b: Bank Dhofar at 8.5% interest rate.

Select one:

a. Option a: 9 Option b: 8.4

b. Option a: 900 Option b: 847.05

c. Option a: 100 Option b: 800

d. Option a: 800 Option b: 900

----------------------

Q3/

Heba is expecting to get OMR 50000 at the end of 5 years. How much will be the value today if : Option a: The discount rate is 9.02% half yearly Option b: The discount rate is 12.8% quarterly

Select one:

a. Option a: 32000.25 Option b: 36000.55

b. Option a: 65000.35 Option b: 49002.45

c. Option a: 32500.20 Option b: 32000.50

d. Option a: 32165.59 Option b: 32009.50

---------------------------

Q4/

Maryam need an amount of OMR 2000 to go on vacations with her husband at the end of each year for 5 years. For this purpose she wants to invest some money in a saving bank but does not know the exact amount of money to invest. What amount does she require to invest now to receive an income of OMR 2000 at the end of each year for 10 years if the interest rate is 7percent

Select one:

a. 7266.08

b. 5200.50

c. 8000.08

d. 8200.39

---------