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Question No. 3: (10+5= 15marks) a- Suppose you had the following propositions of returns from two companies W and Y: (10Marks) Company Returns (OMR) Comments
Question No. 3: (10+5= 15marks) a- Suppose you had the following propositions of returns from two companies W and Y: (10Marks) Company Returns (OMR) Comments W 475 Company W proposes to give OMR 475 today 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%. 3 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
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