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.
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Question 3.
Assume that ABC Islamic bank provides Murabahah financing to Hanif for the purpose of house purchase, amounting to RM500,000 at a constant
Required:
- Show the extract of the
balance sheet and income statement of ABC bank from the beginning till the end of the contract, showing the amount of net receivable and Murabahah income.
Prepare
Step by step
Solved in 4 steps with 6 images
- 5.1 Niles needs £650,000 to set up his business. Bank A is willing to lend him themoney under the following conditions: the loan is to be repaid in equal instalmentsat the end of each of the next ten years and the interest rate is 7%. Determine theinterest and principal components of the payments at the end of the third andeighth year. Explain the difference in the amounts of interest and principalpayment in the third year with corresponding figures for the eight yearA borrower has an GH¢8000 loan with the Unicredit Finance Company. The loan is tobe repaid over 4 years at j12 = 18%. The contract stipulates a penalty in case of earlyrepayment, equal to 3 months’ payments. Just after the 20th payment, the borrowerdetermines that his local bank would lend him the money at j12 = 13.5%. Should he refinance?Q: Suppose a customer visits an Islamic Bank for opening investment account. This investment account is opened through Mudharabah contract. Required: Identify the nature (type) of contract. What are the roles (names) of Islamic Bank and customer in this contract? If the Islamic Bank decides that the customer (depositor) will be compensated with a 10% rate of return at the end of each month for the first year and then according to the KIBOR rate. Is this return allowed in Islamic Law? What are Islamic principles (Shariah rulings) regarding the profit and loss distribution in a Mudharabah contract?
- urururururururururuirururururururururururururururuurırcturuururururırıurırarururururur" 2/ a person owes 1000$ due in 1 year with interest rate 6%. two equal payments in 3 and 9 months, respectively, will be used to discharge this obligation. What will the size of these payments if the person and the creditor agree to use an interest rate of 6% and a focal date in 1 year,Q. Assume a bank has sanctioned a loan commitment of Rs.200000 to one of its prime customers with a current rating of “A” at an annual interest rate of 12%. The loan commitment is for a period of one year. The bank will charge an upfront fee of .05% on the sanctioned loan amount. The bank expects the client to use 80% of the sanctioned amount on an average during the year. The bank has asked the customer to maintain a compensating balance of 15% of the sanctioned amount in an account which will earn an interest of 2% per annum for the customer. The bank will also charge a backend fee of .02% on the unused amount of loan. The current reserve requirements are 5%. Estimate the expected return for the bank from the loan commitment?1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal payments of P6,300 at the end of each quarter. a. What is the semi-annual interest needed to amortize the loan? b. Make an amortization schedule showing the distribution of the payments.
- 4. A contract requires payments of $3762.00 today, $2666.00 in 2 years, and $5932.00 in 5 years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a. compounded quarterly? State your answer in years and months (from 0 to 11 months). The contract can be fulfilled in year(s) and month(s).A Man borrows Php 2000 for 6 years at 8 %, to be repaid in a lump sum at the end of 6 years. At the end of 6 years, the Man renews the loan for the amount due plus Php 2000 more for 2 years at 8 %. What is most nearly the amount of the loan renewal? a. Php 5 506.54 b. Php 4 371.08 c. Php 3 173. 70 d. Php 2 871.611. On 23 January 2021, Sofie took a loan of RM7000 from a local bank that charged r% simple interest per annum. By using Banker's Rule, Sofie settled her loan on 18 May 2021 by paying RM7134.17. Find: a) the term of the loan. b) the interest rate, r.
- A businessman wishes to borrow an amount of K4 million for a term of 3 years.The agreed rate of interest is 10% per annum effective for the first 2 years, and 6%per annum effective for the final year.Repayments on the loan are made annually in arrears.The amount of the level annual repayment is K1,590,328.58.(i) Draw up the loan schedule for the full three-year period.(ii) Calculate what percentage of the loan has been repaid by the end of year 2.(iii) Explain how this percentage figure would alter if the rate of interest had insteadbeen 6% for the first two years and 10% for the final year.a). Elikplim Atayo took a loan facility of ¢1,000,000 from Amegbletor Bank ltd. He agreed to repay the loan monthly over a period of ten years. The interest charged by the bank is 6% per year, compounded monthly. If Elikplim Atayo repays the loan at the end of each month, Calculate the amount Elikplim will pay on monthly for the settlement of the loan. b). GCB Ltd issued 10m of new bonds with ¢1000 face value. The bonds have 10 years to maturity and carries 5% coupon rate. If the rate of return is 6%, how much is the corporation borrowing? What type of bond is this? c). Mr. Adomako and Mr. Bonsu are vice presidents of Databank Mutual Insurance Company and co-directors of the company’s pension fund management division. An important new client, the Ghana Municipal Assembly Alliance, has requested that Databank present an investment seminar to the mayors of the represented cities, and Mr. Adomako and Mr. Bonsu who will make the actual presentation, have asked you to help them by…1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first payment to be made 6 months after the loan finalization. After the payment was made, the debtor was in a position to settle the entire debt balance by a single payment on that date. If the interest on the loan is 12% compounded semi-annually, what would be the amount of this single payment? 2. A man agreed to pay the loan he is borrowing from the bank in six (6) equal end of the year payments of P71,477.70. Interest is 18% per annum compounded annually and is included in the yearly amount he will be paying in the bank. How much is the man borrowing from the bank? 3. A car dealer advertises the sale of a car model for a cash price of P280,000.00. If purchased on installment, the required down payment is 15%, and the balance payable in 18 equal monthly installments at an interest rate of 1.5% per month. How much will be the required monthly payments?