Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have intended to invest the amount in a project. At the end of investment period the project will provide you 250M with the interest rate of 10%. a) Find out the number of years for this investment. b) What will be future value from the founded number of years in part (a) if the interest rate changes from 10% to 8%. c) What will be present value if the interest rate is 12%? d) What will be the future value if the number of year is 8 and interest rate is 9%? e) What will be present value if the interest rate is 5% and number of period is 8 compounded Semi-annually?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...
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Q7:
You have just received OMR200M from a bank by requesting
a loan. Without any deduction you have intended to invest the
amount in a project. At the end of investment period the
project will provide you 250M with the interest rate of 10%.
a) Find out the number of years for this investment.
b) What will be future value from the founded number of
years in part (a) if the interest rate changes from 10% to 8%.
c) What will be present value if the interest rate is 12%?
d) What will be the future value if the number of year is 8
and interest rate is 9%?
e) What will be present value if the interest rate is 5% and
number of period is 8 compounded Semi-annually?
Transcribed Image Text:Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have intended to invest the amount in a project. At the end of investment period the project will provide you 250M with the interest rate of 10%. a) Find out the number of years for this investment. b) What will be future value from the founded number of years in part (a) if the interest rate changes from 10% to 8%. c) What will be present value if the interest rate is 12%? d) What will be the future value if the number of year is 8 and interest rate is 9%? e) What will be present value if the interest rate is 5% and number of period is 8 compounded Semi-annually?
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