D M - Home Exercise - Purchase Finance by an Islamic bank Calculate the monthly payment
Question:
D M - Home Exercise - Purchase Finance by an Islamic bank
Calculate the monthly payment plan for Home purchase on the basis of Diminishing Musharakah (Shirkatul Maal):
• Price of House: Rs 2. 0 Million
Bank Financing: 80 % (Full payment is made in one tranche)
• Tenure: 10 Years
Rental (Return rate equivalent to) : 12% p.a. (of investment)
• Bank’s Share: Rs. 1600000
• Client’s Share: Rs. 400000
• No of Bank’s Units: 120 (equals to number of Months)
• Price per Unit: Rs. 13,333.33
• Rent per Unit: Rs. 1600
[(outstanding investment * rate) / 12 / No. of outstanding units]
Month | Unit Price | Rent per month | Total Monthly Payment | Units balance | Investment Balance |
0 | - | - | - | 120 | 1,600,000 |
1 | 13,333.33 | 16000 | 29333.33 | 119 | 1,586,666.66 |
2 | 13,333.33 | 15866.66 | 29199.99 | 118 | 1,573,333.33 |
3 | 13,333.33 | 15733.33 | 29066.6633 | 117 | 1,560,000 |
4 | 13,333.33 | 15600 | 28933.33 | 116 | 1,546,666.66 |
5 | 13,333.33 | 15466.66 | 28799.99 | 115 | 1,533,333.33 |
6 to 115 | xxxx | xxxx | xxxx | xxxx | xxxx |
116 | 13,333.33 | 666.66 | 13999.99 | 4 | 53333.33 |
117 | 13,333.33 | 533.33 | 13866.66 | 3 | 39999.99 |
118 | 13,333.33 | 399.99 | 13733.32 | 2 | 26666.66 |
119 | 13,333.33 | 266.66 | 13599.99 | 1 | 13333.33 |
120 | 13,333.33 | 133.33 | 13466.66 | - | 0.00 |
Linear Algebra And Its Applications
ISBN: 9781292351216
6th Global Edition
Authors: David Lay, Steven Lay, Judi McDonald