If you will decide to pursue your higher education degree in five years' time. And you...

 

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If you will decide to pursue your higher education degree in five years' time. And you informed your parents that you want to go to International University of management to study your master degree in business administration in UK. The cost of studying a master degree in the institution will cost nearly OMR 25,000 per annum and the degree will be for 3 years of study. Your parents supported your ambitions and they started depositing at HSBC, an amount of OMR 5,000 per year, five (5) years ago, the bank paid and annual interest at 5% on such deposits. Required: A) How much is the total deposits as of today as well as the total interest, in HSBC? B) How much more will your parents have to invest each year for the next five years to have the necessary funds for your education? C) Suppose your parents have an option of investing their OMR 80,000 in the following banks below. Determine by means of appropriate calculations in which bank you would advise them to deposit their money? Banks Bank Sohar Bank Muscat Dhofar Bank Interest 3.5% per annum compounded annually 3.8% per annum compounded monthly 4.2% per annum compounded semi- annually If you will decide to pursue your higher education degree in five years' time. And you informed your parents that you want to go to International University of management to study your master degree in business administration in UK. The cost of studying a master degree in the institution will cost nearly OMR 25,000 per annum and the degree will be for 3 years of study. Your parents supported your ambitions and they started depositing at HSBC, an amount of OMR 5,000 per year, five (5) years ago, the bank paid and annual interest at 5% on such deposits. Required: A) How much is the total deposits as of today as well as the total interest, in HSBC? B) How much more will your parents have to invest each year for the next five years to have the necessary funds for your education? C) Suppose your parents have an option of investing their OMR 80,000 in the following banks below. Determine by means of appropriate calculations in which bank you would advise them to deposit their money? Banks Bank Sohar Bank Muscat Dhofar Bank Interest 3.5% per annum compounded annually 3.8% per annum compounded monthly 4.2% per annum compounded semi- annually

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ANSWER A Statement of total Deposi te Total interest Amount Deposit Cumulat... View the full answer