Assume that ABC Islamic bank provides ‏Murabahah financing to ‏Hanif for the purpose of house purchase, amounting to RM500,000 at a ‏constant rate of return 9% for a period of 5 years. At the end of the contract, Hanif owes ABC bank amounting to RM50,000. As part of the normal requirements, the customers will be charged a penalty fee 4% per annum for any outstanding amount due at the end of the contract and amount collected is normally disbursed as charity.

Assume that ABC Islamic bank provides ‏Murabahah financing to ‏Hanif for the purpose of house purchase, amounting to RM500,000 at a ‏constant rate of return 9% for a period of 5 years. At the end of the contract, Hanif owes ABC bank amounting to RM50,000. As part of the normal requirements, the customers will be charged a penalty fee 4% per annum for any outstanding amount due at the end of the contract and amount collected is normally disbursed as charity.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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