Chapter 2

If an investor invests a sum of 1000 OMR in a fixed deposit for five years and six months with an exact simple  interest rate of 15% per year. Determine the accumulated amount at the end of the period.

• 825 OMR

• 1275 OMR

• 1475 OMR

• 1825 OMR

A person wants to invest 10,000 OMR for his son’s  education in a Mutual Fund of one Private Bank. The bank offers an interest rate (return on investment) of 8.0% compounded bi-monthly. Determine the furture lump-sum of the investment after three years.

• 12,692 OMR

• 12,597 OMR

• 11,248 OMR

• 14,450 OMR

A company has to replace a present facility after 15 years at an expenditure of  250,000  OMR. It plans to deposit an equal amount at the end of every year for the next 15 years at an interest rate of 18% compounded annually. Find the equivalent amount that must be deposited at the end of every year for the next 15 years.

• 5,100 OMR

• 4,100 OMR

Tameem just bought a condominium in Boston,USA. His 40,000 OMR mortgage is 6% compounded monthly, and Tameem will make monthly payments on his loan for 30 years. In addition, property taxes and title insurance amount to 150 OMR per month. Determine the following;

(i) The total mortgage-related amount of Tameem’s monthly condo payment.

• 200

• 240

• 280

• 320

(ii)  Develop an estimate of Tameem’s total monthly expenses (maintenance, utilities, and so on) for his condominium.

• 390

• 420

• 480

• 520

(iii) If Tameem qualifies for a 15-year mortgage having an

       in an interest of 5.8% compounded monthly, what will his

       monthly mortgage payment be?

• 233

• 333

• 433

• 533