Hatim has invested in a fund that will provide him a cash flow of OMR 11700 for the next 20 years. If the discount rate is 8.5 percent, what is the present value of this cash flow stream اخترأحد الخیارات a. 110721.03 OMR O b. 124680.54 OMR c. None of these d. 147108.55 OMR O e. 127107.50 OMR

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.