Question: Note: To Get The Full Mark You Must Show Your Work! 1. Find the future value one year from now of a OMR7,000 investment at

 Note: To Get The Full Mark You Must Show Your Work!
1. Find the future value one year from now of a OMR7,000

Note: To Get The Full Mark You Must Show Your Work! 1. Find the future value one year from now of a OMR7,000 investment at a 3 percent annual compound interest rate. Also, calculate the future value if the investment is made for two years. 2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate? 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four years 4. You are planning to invest OMR2,500 today for three years at a nominal interest rate of 9 percent with annual compounding. a. What would be the future value of your investment? b. Now assume that inflation is expected to be 3 percent per year over the same three-year period. What would be the investment's future value in terms of purchasing power? c. What would be the investment's future value in terms of purchasing power if inflation occurs at a 9 percent annual rate

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