Practice Exercise 1: Abdullah want to choose a better option for making investment, help him to decide which the better option is by calculating time value of money for the following: b) A Bank deposit of OMR. 50000 which pays 6.75% interest for 15 years but compounding is done quarterly. Practice Exercise 2: Your father on retirement would like to invest OMR. 75000; he needs to choose a better option for making investment, help him to decide which is the better option by calculating time value of money for the following: a) Investment in a Mutual Fund which pays 11% interest for 7 years A Bank deposit which pays 11% interest for 7 years but compounding is done monthly. b) Which of the two option should he accept? Practice Exercise 3: Ali wants to construct his house after 10 years and the estimated fund required for the same is Omr. 125000. He needs to choose a better option for making investment today, help him to decide which the better option is by calculating time value of money for the following: a) Investment in a Mutual Fund which pays 10.5% interest for 5 years b) A Bank deposit which pays 10.5% interest for 5 years but discounting is done monthly. c) Which of the two option should he accept?
Practice Exercise 1: Abdullah want to choose a better option for making investment, help him to decide which the better option is by calculating time value of money for the following: b) A Bank deposit of OMR. 50000 which pays 6.75% interest for 15 years but compounding is done quarterly. Practice Exercise 2: Your father on retirement would like to invest OMR. 75000; he needs to choose a better option for making investment, help him to decide which is the better option by calculating time value of money for the following: a) Investment in a Mutual Fund which pays 11% interest for 7 years A Bank deposit which pays 11% interest for 7 years but compounding is done monthly. b) Which of the two option should he accept? Practice Exercise 3: Ali wants to construct his house after 10 years and the estimated fund required for the same is Omr. 125000. He needs to choose a better option for making investment today, help him to decide which the better option is by calculating time value of money for the following: a) Investment in a Mutual Fund which pays 10.5% interest for 5 years b) A Bank deposit which pays 10.5% interest for 5 years but discounting is done monthly. c) Which of the two option should he accept?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Practice Exercise 1: Abdullah want to choose a better option for making investment, help him to decide which the
better option is by calculating time value of money for the following:
a) An investment of OMR. 50000 in a Bond which pays 6.75% interest for 15 years
b) A Bank deposit of OMR. 50000 which pays 6.75% interest for 15 years but compounding is done quarterly.
Practice Exercise 2: Your father on retirement would like to invest OMR. 75000; he needs to choose a better option
for making investment, help him to decide which is the better option by calculating time value of money for the
following:
a)
Investment in a Mutual Fund which pays 11% interest for 7 years
b)
A Bank deposit which pays 11% interest for 7 years but compounding is done monthly.
c)
Which of the two option should he accept?
Practice Exercise 3: Ali wants to construct his house after 10 years and the estimated fund required for the same is
Omr. 125000. He needs to choose a better option for making investment today, help him to decide which the better
option is by calculating time value of money for the following:
a)
Investment in a Mutual Fund which pays 10.5% interest for 5 years
b)
A Bank deposit which pays 10.5% interest for 5 years but discounting is done monthly.
c)
Which of the two option should he accept?
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