Q7: Mr. Yonus had a sum of money and he wants to double them in a period of 5 ½ years. He approached many banks and each bank is offering different interest rates to make that sum double. The interest rates offered by various banks are Bank Muscat 25%, National Bank of Oman 10%, Oman Arab Bank 15% and HSBC 20%. a) At what rate of simple interest the sum will be doubled as per your calculation? b) Which bank interest rate is matching with your calculation? c) Considering the present bank interest rate, how many years it will take to double your amount? Discuss with reason

Q7: Mr. Yonus had a sum of money and he wants to double them in a period of 5 ½ years. He approached many banks and each bank is offering different interest rates to make that sum double. The interest rates offered by various banks are Bank Muscat 25%, National Bank of Oman 10%, Oman Arab Bank 15% and HSBC 20%. a) At what rate of simple interest the sum will be doubled as per your calculation? b) Which bank interest rate is matching with your calculation? c) Considering the present bank interest rate, how many years it will take to double your amount? Discuss with reason

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
1. ) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? 2. ) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay you back Rs.75, 000 after 8 years. What rate offered by bank? 3.) You borrowed Rs.500, 000 at 18% for five years. How much you will pay each year to settle this loan? If you decided to settle this loan after two years, what additional amount you will pay at the end of two years to fully payback this loan while bank is not imposing any fine on you?
Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25
A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank that compound interest continuously. What interest rate does this bank give? What will be the interest on interest that he will receive on his investment?
a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay youback Rs.75, 000 after 8 years. What rate offered by bank? c) You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will payat the end of two years to fully payback this loan while bank is not imposing any fineon you?
Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
1. How long will it take to accumulate P5,000 to P7,000 if interest rate is 6% compounded quarterly?2. How much should be deposited now by Mr. A in an investment paying an annual rate of 16% compounded semi-annually to realize P300,000 in five years?3. Mrs. Nora Delos Reyes opens a savings account at Rural Bank. The Bank offers 16% interest per annum as long as no withdrawals are made. As soon as a withdrawal takes place, this rate will automatically drop to 10% per annum starting from the date of withdrawal. Mrs. A initially deposits P50,000. The account remains untouched for four years. At the beginning of the fifth year, she withdraws P5,000. Neither deposits nor withdrawals are made for the next four years. How much money does she have eight years after her initial deposit?4. Carl agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing a land worth P1,250,000 cash. If money is worth 8% compounded annually, find the annual…
Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay you back Rs.75, 000 after 8 years. What rate offered by bank. c) You borrowed Rs.500, 000 at 18% for five years. a) How much you will pay each year to settle this loan. b) If you decided to settle this loan after two years, what additional amount you will pay at the end of two years to fully payback this loan while bank is not imposing any fine on you.
1.You are planning to take a car, its cash price is Rs.800,000. Bank is offering seven year monthly payment plan at 18%. How much monthly installment will be offered by bank? 2.Suppose you are accepting bank offer as given in Q No.43 but want to amortize whole loan in five years. What monthly installment will be offered by bank?
You owe the Bank of US $700 in one year, $900 in 3 years, and $1200 in 6 years. How much would it cost to pay the Bank of US today when they charge 7.5% compounded monthly? Please answer fast i give you upvote.
Q1:If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years Q2:What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually Q3:Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Q4:If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?