Know the exact amount of money

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Reference no: EM131998015

Salama wants to buy a car worth OMR. 10000, for which she has been saving and investing in bond an amount of OMR. each year for the last 10 years. She is willing to withdraw and buy a new car today; but does not know the exact amount of money she will get it

1. What amount will she receive assuming an interest rate of 5%?

2. What amount will she receive assuming an interest rate of 6%?

3. Suggest which option will her in a better way to buy the Car worth OMR. 10000?

Reference no: EM131998015

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