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Question No. 1: (5 Marks) Draw a figure showing the five parts of the Financial System and explain them in detail. Question No. 2: Loan

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Question No. 1: (5 Marks) Draw a figure showing the five parts of the Financial System and explain them in detail. Question No. 2: Loan Amortization (10marks) You are borrowing a loan from Sohar Bank of 14832 OMR at a compound annual Interest rate of 1% Question: Amortize the loan if annual payments are made for 5 years. Question No. 3: (10+5= 15marks) - Suppose you had the following propositions of returns from two companies and Y: (10Marks) Company Returns (OMR) Comments W 475 Company W proposes to give OMR 475 today Y 550 Company Y proposes to give you OMR 550 but after 2 years You also know that the Interest Rate is by 10%. Question: In which company do you choose to invest your money and why? (Use two formulas (ways) and also use Tables to make sure your answers are correct). b- You would like to purchase a Car that costs OMR 50000. You planned with your banker to collect the amount for this project. (5Marks) You decided to deposit OMR 9450 each year and during 5 years. Suppose also that the bank gives an annual Interest Rate of 6%. Questions: 1- Trace the Time Line illustrating the story 2- What would be the amount collected at the end of the seventh year? 3- Will you have enough money to buy the motorcycle? How much is the difference between the amount saved and the motorcycle price? Can you buy it? Question No. 4: a- Mini Case (5 marks) Suppose you receive 100000 Omani Rial each year and you retired at 60 years old. The insurance Company promises to give you 65% of your annual salary. You felt happy and began to plan for travelling Question: Is your feeling of happiness correct? What should you have done before retirement? Answer: (Explain your point of view theoretically, you don't need to calculate anything)

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