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Question1 . (5 marks) Suppose you had the following propositions of returns from two companies C and D: Company ....Returns (OMR) ... Comments C ....750
Question1 . (5 marks) Suppose you had the following propositions of returns from two companies C and D: Company ....Returns (OMR) ... Comments C ....750 ....Company C proposes to give 750 Rial today D... 820.... Company D proposes to give you 820 but after 2 years You also know that the Interest Rate is by 9%. Question: In which company do you choose to invest your money and why? (Use two formulas one formula for Company C and another one for Company D). Question 2. Loan Amortization (5 marks) You are taking a loan from Muscat Bank of 6100 Rial at a compound annual Interest Rate of 5% Question: Amortize the loan if payments are made for 5 years.
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